Foreign Homebuyers Tax Rebate

Some purchasers who are subject to the Foreign Homebuyers Tax in Ontario (formally known as the Non-Resident Speculation Tax Rebate) are eligible to apply for a rebate of this tax.

The rules surrounding applying for a Foreign Homebuyers Tax Rebate can be technical. There are three distinct rebate categories: (1) Rebate for foreign nationals who become permanent residents of Canada, (2) Rebate for international students, and (3) Rebate for foreign nationals working in Ontario.

Requirements for each Rebate Category

Each rebate category has specific requirements that must be met. For instance, an international student must have been enrolled full-time in an approved institution at a campus located in Ontario for a continuous period of at least two years after the day the conveyance was tendered for registration.

It is important to make sure that you have the evidence to support that you meet the requirements outlined for the category under which you are applying for the rebate.

Other Rebate Requirements

Each rebate category requires that the purchaser has occupied the property as their principal residence within 60 days of the closing date of the property purchase. The Ministry of Finance wants documentation showing the new address dated within 60 days of the date of the transaction, such as but not limited to: a copy of driver’s license, moving invoice, personal credit card statement, telephone bill, car insurance papers, etc.

The Ministry also requests documents from the purchase transaction itself to verify who purchased the property, and that the Foreign Homebuyers Tax was paid.

Conclusion

Applying for a Foreign Homebuyer Tax Rebate can be a complicated process, and it is a good idea to have an experienced expert to assist you through this process.

If you need to apply for a Foreign Homebuyers Tax Rebate, or if you are facing an audit of a rebate application, we are available to assist.