When buying a newly constructed real estate property, the entire purchase price including land is taxed with a Goods and Service Tax (GST). If the property is to be rented to tenants or is a holiday home, the full 5% GST is charged on the purchase price. However, if the home is going to be the purchaser’s primary place of residence, it may qualify for a partial GST rebate, depending upon the sale price.
Most sale prices for new construction is printed , “+GST”. Be sure you are aware of the total sale price, including GST, when considering the purchase of a home.
GST is charged on all Goods and Services in Canada, and visitors to the country can apply for a rebate of GST paid on many items bought while visiting Canada. Real Estate is not an eligible item, and purchasers of Canadian real estate will not receive a refund of GST paid on the purchase of Canadian property. But be sure to apply for a rebate for other eligible items while visiting the area!
For more information visit:
The Canada Custom & Revenue Agency website for non-resident visitors.
(Jessica Stoner of RE/MAX Alpine Realty is a licensed agent in Alberta and represents clients purchasing real estate in Canmore)
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