GST/HST New Residential Rental Property Rebate
Recover a Portion of GST/HST Paid on Newly Constructed or Renovated Rental Properties
NRRP Rebate for Rental Property Owners in Canada
The GST/HST New Residential Rental Property (NRRP) Rebate offers eligible landlords and real estate investors the opportunity to recover a portion of the GST or HST paid on the purchase of newly constructed or substantially renovated residential rental properties. While long-term residential rentals are generally exempt from GST/HST—meaning landlords can’t claim input tax credits—this rebate helps offset the upfront tax cost for qualifying rental acquisitions.
The NRRP rebate can significantly improve project viability by reducing overall tax liability and freeing up capital for other investment needs. For many property owners, this translates to improved cash flow, better return on investment, and increased affordability when expanding their rental portfolio.
To qualify, the property must be intended for long-term residential rental use, and the first occupant must be a tenant (not the owner). The amount of the rebate depends on the fair market value of the property and whether federal and/or provincial portions of the tax apply. Understanding the rules and properly filing the rebate application is essential to ensuring you receive the full benefit.
Understanding the GST/HST NRRP Rebate in Canada
What We Offer
Eligibility Assessment
Rebate Calculation and Documentation Preparation
Application Submission (Form GST524) and Provincial Equivalent
CRA Follow-Ups and Audit Support
Who Can Apply for the NRRP Rebate?
The rebate is available to:
Real estate investors purchasing newly constructed or substantially renovated rental properties.
Landlords leasing out new rental units for long-term residential use.
Builders and developers who self-supply and lease newly built residential properties.
Property owners converting non-residential buildings into residential rental units.
If you purchased a new residential rental property, you may qualify for a rebate of a portion of the GST or HST paid.
Key Eligibility Criteria
The property is newly constructed, substantially renovated, or converted into a residential unit.
It is leased for long-term residential use (typically at least one year).
The rebate application is submitted within two years of the closing date or self-supply date.
The purchaser paid GST or HST on the purchase or construction costs.
Key Benefits of the NRRP Rebate
- Recover up to 36% of the GST paid (or a portion of the HST, depending on the province).
- Reduce the overall cost of acquiring or developing rental properties.
- Increase cash flow by reclaiming a portion of the taxes paid.
- Ensure CRA compliance while securing eligible refunds.
How Much Can You Recover?
| Property Price | Federal GST/HST Rebate | Ontario HST Rebate |
|---|---|---|
|
$350,000 or less |
$6,300 max (36% of GST) |
$24,000 max (75% of provincial HST) |
|
$350,000 – $450,000 |
Phased out |
Full rebate still available |
|
Over $450,000 |
Not eligible |
Still eligible |
How the NRRP Rebate Process Works
Initial Consultation and Eligibility Review
We evaluate your property details, lease agreements, and GST/HST payments to confirm eligibility.
Rebate Calculation and Documentation Preparation
We calculate the maximum rebate amount and gather required supporting documents, such as purchase agreements and lease contracts.
Application Submission (Form GST524) and Provincial Supplement
We complete and submit the GST/HST New Residential Rental Property Rebate application to the CRA.
CRA Review and Follow-Ups
If the CRA requests additional documentation or initiates an audit, we manage all correspondence to ensure your claim is processed without delays.
Rebate Approval and Refund Issuance
Once approved, you receive your rebate as a direct refund from the CRA.
Why Us
Educating Clients
We prioritize educating our clients on the NRRP rebate process and guide you through each step to ensure you understand your rights and the full benefits available to you.
Seasoned Experts
Our experienced team has a deep understanding of the GST/HST NRRP Rebate and can help maximize your rebate while ensuring compliance with CRA regulations.
Personalized Solutions
We tailor our services to your specific needs, ensuring that you receive the appropriate rebate based on your property type, leasing agreements, and GST/HST payments.
Modern Approach
We embrace cutting-edge technologies and innovative methods to provide efficient, effective, and compliant services that save you time and hassle.
Frequently Asked Questions (FAQs)
Find answers to common questions about Democracy
No, short-term rentals (under 30 days) do not qualify. The property must be leased for at least one year.
Yes, as long as the initial lease agreement was for at least one year.
If your renovations meet the CRA’s substantial renovation criteria (90%+ of the interior altered), you may qualify for the rebate.
Yes, corporations purchasing newly built or substantially renovated rental properties may be eligible for the NRRP rebate.
You must submit a one-year lease agreement as proof of long-term tenancy.
Not necessarily, but applications are subject to CRA review, and additional documents may be requested.
Late applications are not accepted by the CRA. It’s crucial to apply within two years of closing or self-supply.
Yes, non-resident investors can apply, provided they meet the lease agreement and property eligibility criteria.
You must submit a one-year lease agreement as proof of long-term tenancy.
The NRRP rebate is for rental properties, while the new housing rebate applies to owner-occupied homes.
No, the lease agreement must be in place before you can apply.
CRA processing times vary, but most rebates are issued within 2 to 6 months after application submission.
How Much Does TMP Charge for the GST/HST New Residential Rental Property Rebate?
Basic
Who It’s For:
Individual landlords with a single rental property
Includes:
- - Application Filing
- - CRA Submission
Expert
Who It’s For:
Real estate investors with multiple rental units
Includes:
- - Application Filing
- - Documentation Review
- - CRA Submission
- - CRA Compliance Support
Premium
Who It’s For:
Developers and complex cases with large-scale rental properties
Includes:
- - Application Filing
- - Documentation Review
- - CRA Submission
- - CRA Compliance Support
- - Full Audit Representation
- - Tax Planning Services