Knowing that a building constructed and attached to the ground is liable for property tax, an alternative would be living in a mobile home or tent to earn tax exemption.
Apart from this limiting alternative, there are three ways to effectively benefit from a temporary tax exemption.
Demolish and Rebuild
All new construction is automatically exempt from property tax:
- For a period of two years;
- From 1 January following the date of completion;
- Applicable even when it follows reconstruction.
To qualify for the exemption, you must declare the building within 90 days after completion.
Note: Expansions certainly benefit from tax exemption, but this will only cover the newly constructed addition.
Do work to improve your home’s energy performance
You will be exempt from property tax for 5 years, partially or in full:
- If your home was constructed before 1 January 1989;
- And you perform the work leading to a saving of energy costs.
To take advantage of the exemption, you must make a declaration before 1 January of the first year in which the exemption applies.
Note: This exemption is at the discretion of the Commons, which may just grant a partial rebate of 50% based on the amount spent and work completed. Check with your municipality first before you start construction.
Buy a BBC label
A home with a BBC label (Low Consumption Building) is exempt from local tax for 5 years, or partially exempt (50 to 100%), which is also at the discretion of your local municipality.
To take advantage of this exemption, you must again make a declaration before 1 January of the first year in which the exemption applies.
Note: Two neighboring cities may practice a different policy on property tax relief. Before buying property, search municipalities with real programs that interest you and see which ones give you a total exemption.