Is there a land transfer surcharge or speculation tax for non-resident buyers in Ontario?

Ontario has had a Non-Resident Speculation Tax (NRST) aimed at foreign nationals and foreign corporations purchasing residential property in certain parts of the province. The NRST is an additional percentage of the purchase price charged on top of the standard Ontario land transfer tax — it is a separate levy, not a bracket of the regular LTT.

The scope, rate, and geographic application of the NRST have changed over time since its introduction. Originally applied only in certain regions, it was subsequently expanded province-wide, and the rate has been adjusted. Because this area of law changes frequently, it is essential to confirm the current NRST rate and scope with a real estate lawyer at the time of your purchase rather than relying on any historical figure.

Exemptions exist for certain purchasers, including Canadian citizens, permanent residents, and some nominees under provincial nominee programs. International students and work permit holders residing in Ontario may qualify for a rebate of the NRST under specific conditions. The NRST rules are complex — if you are not a Canadian citizen or permanent resident, confirm your obligations before making an offer.