The full name of overseas buyer tax is Non-Resident Speculation Tax, or NRST for short.The NRST applies to overseas buyers who purchase residential property in the Greater Golden Horseshoe Region (GGH) on or after April 21, 2017, and will be charged 15% if the property purchased does not exceed six family dwellings. foreign buyer taxCommercial, agricultural, and industrial properties are not within the scope of taxation. Residential and other types of mixed properties are levied according to the value of the residential part.Let’s take a look at the frequently asked questions about tax refunds!
Question 1: Do I meet the tax refund requirements as long as I study for two years or work for one year after buying a house?
It cannot be judged so simply. The tax bureau has strict regulations. You must have been studying full time or working full time on or before the closing date of the house, and then you must have studied for two years or worked for one year. To meet the tax refund requirements
Question 2: I was studying full-time before buying a house and working full-time one year after buying the house. Do I meet the tax refund requirements?
This situation is unfortunate because you do not meet the tax refund requirements.The tax bureau stipulates that if you studied full-time before buying a house, you can only get a tax refund as a full-time student for two years; if you worked full-time before buying a house, you can only get a tax refund as a full-time employee. If you switch from studying to working, or working to studying, you will lose your tax refund qualification. You must pay attention to this.
Question 3: The school I study in is 2 hours drive from the house I bought. Am I eligible for the tax refund?
This situation is quite special and there are certain risks in applying. It depends on how the tax bureau determinesIf you claimed your rent expenses while you owned your home, you may be denied a tax refund because the home cannot be proven to be your primary residence.
Question 4. The house I bought is a transferred off-the-plan property. At what price should I pay the overseas buyers tax? And how to get tax refund?
If you transfer an off-the-plan property, you will pay the overseas buyer's tax at the final transaction price. When you get a refund, the tax will be refunded based on the amount you paid.
Question 5: After I bought a house, due to some reasons, I rented out part of the house. Can I still get a refund of the foreign buyer tax?
No! Please note that once the house is rented out in any form, it will directly lose the tax refund qualification, remember!
Question 6. After I bought a house, due to some reasons, I did not move in within 60 days after handing over the house. Will this affect my tax refund?
When applying according to the tax bureau regulations, you need to submit your proof of occupancy within 60 days after the date of handover.For example: driver's license change of address proof, changed bank statement, car insurance change of address proof, moving receipt and other supporting documents that can prove that you moved in within 60 daysTherefore, we remind everyone to move in within 60 days and collect and keep the above supporting documents.
Question 7. The house I bought is in my name and that of one of my parents. Can I refund the overseas buyer tax?
No! If the house is in the name of two people, both parties must be married or under common law for more than 3 years.
Question 8. During my studies, I have part time in certain semesters for some reason. Can I still get a tax refund?
This depends on the specific situation. If it is for objective reasons, such as absence from school due to illness, teachers’ strike, etc., you need to provide documentation and it is possible to refund the overseas buyer tax.
