Wednesday, October 14, 2009

Buying Basics Toronto Land Transfer Tax


There are no restrictions on foreign buyers in France, according to Mr. Swannie. When homes are listed for sale, he said, the asking price almost always includes the real estate agent’s commission, typically 6 percent, which is paid out of the seller’s proceeds after the sale. But it’s worth making sure the commission is included.

Buyers pay a fee to the notary, or notaire, who handles the sale. Mr. Swannie says this fee includes stamp duty and transfer taxes, and depends on the age of the home being sold. Homes less than five years old have transaction costs of about 2.5 percent, while older homes cost 5 to 7 percent. About 1.5 percent goes to the notary, and the rest is mostly local transfer taxes.

Mortgages provide tax advantages for owners of premium real estate in France. Mr. Swannie says people who have more than 790,000 euros (about $1 million) worth of assets in France have to pay a wealth tax, but mortgaged real estate holdings are not included. Many people therefore take out mortgages to avoid the wealth tax.

A buyers tax of 5 t0 7% of the purchase price of the house.

That practically makes me feel warm and fuzzy about our land transfer tax system. Click here and insert your purchase price to calculate your Toronto and Ontario Land Transfer Tax.

Rebates are available for First Time Buyers Call for details.

The EU European Union sounds great, but boy, things sure are different over there too!

Do you have a European real estate story you would like to share?

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