Can I buy and use an iPhone 5 in Canada and also use it in Europe?

I travel between Canada and parts of Europe and want to buy an iPhone in Canada.
Can I use it in Canada and in Europe?
Can I just buy pay-as-you-go cards? Or how does this work? Something with SIM cards?
Thank you!

Canadian iPhone 5 and the one being sold in Europe are different models.
If GSM unlocked it will work on supported networks except LTE services
Remember Warrantee of iPhone is limited to the country of sale, EU if bought in any European country.

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