The Non-Resident Speculation Tax (NRST) is a 25% tax in Ontario on residential property purchases by foreign nationals, foreign corporations, and certain trustees. It applies to purchases made after March 29, 2022, throughout Ontario and before that date in the Greater Golden Horseshoe region.
Exemptions from NRST include:
1-Eligible Ontario Immigrant Nominee Program participants.
2-Protected Persons under the Canadian immigration & Refugee protection act.
3-Spouses of Canadian citizens, permanent residents, nominees, or protected persons who will use the property as their primary residence.
To qualify for these exemptions:
*Nominees must be nominated under the Ontario Immigrant Nominee Program at the time of purchasing the property & and commit to applying for permanent residency before expiry.
*Protected Persons must have refugee protection.
*Spouses must be named as transferees in the property transaction and co-own the property with eligible individuals.
-In all the above cases, If the nominees have a co-owner for the subject property, the co-owner must be a Canadian citizen, permanent resident, nominee, or protected person.and all owners must confirm their intent to use the property as their primary residence.
***NRST does not apply to certain types of land, such as multi-residential rental apartments with over six units, agricultural, commercial, or industrial land.
