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HOW TO CALCULATE WELCOME TAX
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In addition to the sale price of the property, other costs will be added after the signing of the deed of sale, for example:
The Transfer Tax on property, also known as "Welcome Tax".
The Welcome Tax is a tax that the municipality in which you purchase a property charges you.
The Welcome Tax is based on the greater amount of the following:
§ the selling price of the property, or
§ the municipal evaluation of the property
How to calculate the Welcome Tax |
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The welcome tax or Transfer tax is calculated in the following way:
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0.5% |
Of the first $50,000 |
($1 - $50,000) |
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1% |
Of the next $200,000 |
($50,001 - $250,000) |
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1.5% |
Of the remainder of the amount |
(> $250,000) |
Here are some examples:
(we assume the sale price of all properties in these examples are greater than their M.U.C. evaluation)
Example #1: Sale price $50,000
0.5% x $50,000 = $250
The amount to pay as Welcome tax or Transfer tax is $250.
Example # 2: Sale price $300,000
0.5% x $50,000 = $250
0.1% x $200,000 = $2,000
1.5% x $50,000 = $750
The amount to pay as Welcome tax or Transfer tax is $3,000.
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