Canada Non-Resident Speculation Tax Guide (NRST)
the non-resident speculation taxes in Canada. The Ontario Non-Resident Speculation Tax (NRST) is a 25% tax on the residential property purchased by the non-residents and the foreign corporations in the "Greater Golden Horseshoe" region (the "NRST region" — the Metro Toronto, the Hamilton, the Waterloo, the Niagara, the Durham, the York, the Peel, the Halton, the Simcoe, the Dufferin, the Kawartha Lakes). The NRST is calculated on the total purchase price (the "consideration" — the price paid for the property). The NRST exemptions include the nominees under the Ontario Immigrant Nominee Program (OINP), the protected persons (the refugees), and the spouses of the Canadian citizens or the permanent residents (if the spouse is the Canadian citizen or the PR). The NRST refund is available to the nominees who become the permanent residents or the Canadian citizens within 4 years of the purchase (the "NRST refund" — the refund of the full NRST amount). The BC Foreign Buyer Tax (the "Additional Property Transfer Tax" — the "APT" at 20% on the residential property purchased by the foreign nationals and the foreign corporations in BC). The federal foreign home buyer ban (the "Prohibition on the Purchase of the Residential Property by the Non-Canadians Act") prohibits the non-Canadians from buying the residential property in Canada for 2 years (effective January 1, 2023, extended to January 1, 2025, and further extended).
Ontario NRST
- Rate: 25% on the total purchase price (the "taxable consideration"). The NRST is paid in addition to the Ontario Land Transfer Tax and the Toronto MLTT (if applicable). The NRST on the $1 million property is $250,000.
- Applicable to: The foreign nationals (the individuals who are NOT the Canadian citizens or the permanent residents), the foreign corporations (the corporations NOT incorporated in Canada), and the taxable trustees (the trusts with the foreign beneficiaries). The Canadian citizens and the permanent residents are generally exempt.
- Exemptions: The nominees under the OINP (the "Ontario Immigrant Nominee Program" — the individuals who have the OINP nomination letter), the protected persons (the "convention refugees" and the "persons in need of the protection"), the spouses of the Canadian citizens or the permanent residents (if the spouse is the Canadian citizen or the PR), and the indigenous persons (the "status Indians" under the Indian Act).
- Refund: The OINP nominees who become the permanent residents within 4 years of the purchase can apply for the NRST refund. The refund application must be made within 4 years of the purchase (the "NRST refund deadline"). The refund includes the NRST plus the interest.
- NRST region: The "Greater Golden Horseshoe" — the counties and the regional municipalities: Halton, Peel, York, Durham, Toronto, Hamilton, Waterloo, Niagara, Simcoe, Dufferin, Haldimand, Kawartha Lakes, and the certain towns and the townships in the Northumberland County and the Peterborough County.
BC Foreign Buyer Tax (Additional PTT)
- Rate: 20% on the fair market value of the residential property (the "additional property transfer tax" — the APT). The tax is paid in addition to the BC Property Transfer Tax (PTT). The APT on the $1 million property is $200,000.
- Applicable to: The foreign nationals (the individuals who are NOT the Canadian citizens or the permanent residents), the foreign corporations (the corporations NOT incorporated in Canada or incorporated in Canada but controlled by the foreign nationals), and the taxable trustees.
- Exemptions: The individuals with the valid work permits (the "work permit holders" — the individuals with the valid BC work permit who work in BC), the protected persons (the refugee claimants referred to the IRB), and the spouses of the Canadian citizens or the permanent residents (if the spouse is the Canadian citizen or the PR).
- Refund: The work permit holders who become the permanent residents within 10 years can apply for the APT refund (the "BC APT refund" — the refund of the full APT amount).
Federal Foreign Home Buyer Ban
- Prohibition: The "Prohibition on the Purchase of the Residential Property by the Non-Canadians Act" — the federal ban on the non-Canadians purchasing the residential property in Canada. The ban was effective January 1, 2023, for 2 years (originally to expire January 1, 2025). The ban has been extended (the "2024 extension" — the ban is extended to January 1, 2027).
- Scope: The non-Canadians (the individuals who are NOT the Canadian citizens, the permanent residents, or the registered Indians under the Indian Act) and the foreign corporations (the corporations NOT incorporated in Canada or incorporated in Canada but controlled by the non-Canadians).
- Exemptions: The individuals with the temporary resident permits (the work permits, the study permits), the refugees, the "protected persons", and the international students (the "study permit holders" — the international students who are in Canada for 5+ years and file the tax returns for 5+ years). The purchase of the recreational property (the cottage, the cabin) by the non-Canadians is also exempt.
For the Underused Housing Tax (UHT) and the vacant home taxes, see our Vacant Home Tax Guide →. For the property tax and the land transfer tax rules, see our Property Tax Guide →.