Is there an extra tax for non-Canadians buying property in Ontario?

Yes. Ontario's Non-Resident Speculation Tax (NRST) is an additional land transfer tax that applies to certain purchases of residential property by foreign nationals (non-Canadian citizens or non-permanent residents) and certain foreign corporations and taxable trustees. The tax is calculated as a percentage of the purchase price (the current rate is set by regulation and should be confirmed at the time of purchase).

The NRST applies to purchases of residential property — including detached homes, semi-detached homes, row houses, condominiums, and duplexes — in designated areas of Ontario. The designated area was expanded in 2022 to cover all of Ontario, not just the Greater Golden Horseshoe.

Several exemptions and rebates exist. A foreign national who becomes a permanent resident or Canadian citizen within a specified period after the purchase may apply for a rebate of the NRST. Nominees under the Ontario Immigrant Nominee Program who purchase to use as their principal residence may qualify for an exemption. Refugees and spouses of Canadian citizens in certain circumstances may also qualify.

The NRST is in addition to (not in place of) the regular Ontario land transfer tax. A buyer who triggers NRST pays both taxes on closing.

Buyers who may be affected should confirm their status and potential exemptions with a real estate lawyer before signing an agreement of purchase and sale.