When purchasing a property in Montreal there is a once off “Welcome Tax” (Also referred to as Land Transfer Tax) on the property purchase. Below are a few examples of the amount paid when acquiring a property in Montreal. Each amount is based on the Municipal Assessment of the property or the purchase price of the property (whichever is greater).
What are the brackets?
- 0.5% of the first $50,000;
- 1% of the next $50,000 to $250,000;
- 1.5% of the next $250,000 to $500,000.
- 2% of any portion exceeding $500,000
- $200,000 property = Tax of $1,750
- $350,000 property = Tax of $3,750
- $500,000 property = Tax of $6,000
- $1,000,000 property = Tax of $16,000
In addition to the once off tax, local municipal and local school taxes are calculated and paid on a yearly basis. This tax is applicable for local residence of Canada and Foreign investors.
This tax varies from year to year and from property to property.