Ontario Real Estate Non Resident Tax Increasing to 20%

By: Kevin Chan

Ontario Real Estate Non Resident Tax Increasing to 20%

Tags: Taxes, NRST, Foreign Buyers Tax

 

Since 2017, the provincial government have implemented a series of measures to help calm the real estate market in Ontario.  One of these measures is called the Ontario Non Resident Speculation Tax (NRST) which imposed a 15% on the purchase of any property in the Golden Horse Shoe Region for individuals who are foreign nationals or by foreign corporations or taxable trustees . This tax is payable directly to the Ontario Ministry of Finance. Whether or not this tax has helped dampen the thirst for real estate (especially residential properties) in Ontario is debatable and this has not stopped the government from padding the provincial coffers. 

Individuals subject to NRST with Agreements of Purchase and Sale entered into on or after March 30th, 2022, will see an increase to 20% and those who were formerly offered a rebate from this tax ( International Students & Foreign Nationals Working in Ontario) are now subject to this tax without rebate.  This tax will also now apply to all disposition of properties across Ontario to buyers subject to NRST starting on March 30th. 

There still remain a few exceptions and rebates for certain individuals such as foreign nationals that have spouses who are Canadian citizens or those protected under the Immigration and Refugee Protection Act (Canada).  For more details consult your real estate lawyer or more detailed nformation can be found on the Ontario Ministry of Finance website