Ontario Non-Resident Speculation Tax Refunds for Newcomers

If you bought a home in Ontario before you were a citizen or permanent resident, you may have paid the Non-Resident Speculation Tax, often called the foreign buyer tax. Many newcomers later ask whether any of it can come back to them.

The answer depends on your status on closing day, who else is on title, how soon you became a permanent resident, and whether you moved in on time. Deadlines are short, so it is worth understanding them early.

What the tax is and who pays it

Ontario's Non-Resident Speculation Tax (NRST) is 25%, effective October 25, 2022, and applies across Ontario. It is in addition to the general land transfer tax.

It applies to foreign nationals, foreign corporations and taxable trustees who acquire land with one to six single-family residences. Since March 27, 2024 this includes condo parking and storage units. Larger rental buildings and agricultural, commercial and industrial land are not covered.

If any transferee is a foreign entity or taxable trustee, the tax applies to the full value of the consideration, not just that person's share, and every transferee can be liable.

Check exemptions first

A refund is a second chance. The better question is whether an exemption applied when you closed. Status must generally exist on closing day, and becoming a nominee after closing does not qualify retroactively.

• Ontario Immigrant Nominee Program nominees are exempt if nominated at the time of purchase and they have applied, or certify they will apply, for permanent residence before the nominee certificate expires.
• Protected persons, meaning those on whom refugee protection has been conferred under section 95 of the Immigration and Refugee Protection Act, are exempt, with status in place on closing day.
• A foreign national buying with a spouse is exempt if the spouse is a Canadian citizen, permanent resident, nominee or protected person and both spouses are named transferees.

For the nominee and protected-person exemptions, co-owners must be citizens, permanent residents, nominees or protected persons, and all transferees must occupy the home within 60 days after registration. For this purpose, 'spouse' includes someone married or cohabiting continuously for at least three years, or in a relationship of some permanence as parents of a child. None of these exemptions apply if a taxable trustee is a transferee.

The permanent resident rebate

If you paid the tax and later become a permanent resident, a rebate may be possible. The key points are:

• You must become a permanent resident within four years after the conveyance is registered.
• The application must reach the Ministry of Finance within 180 days of becoming a permanent resident, and the date on the Permanent Resident Card is not the reference date.
• You must occupy the home as your principal residence from within 60 days after registration.

If the two named transferees are spouses, only one of them must become a permanent resident for the rebate to apply. The rebate is not available if a taxable trustee is a transferee.

Because the clock runs from the date you became a permanent resident, not the date on your card, confirm that date with your immigration documents or a lawyer before counting days.

Old rebates and overpayment refunds

The transitional rebates for international students and for foreign nationals working in Ontario are no longer available. They applied only to agreements signed on or before March 29, 2022, and the application deadline was March 31, 2025.

A separate refund exists for tax that was overpaid or improperly paid. It must be applied for within four years of paying the tax.

What to do next

Rebate and refund applications are made online through the Ministry of Finance services portal, or on Form 9996. Proof of occupancy matters: utility bills, property tax bills and home insurance are not accepted.

• Write down your registration date and the date you became a permanent resident.
• Count 180 days forward from that permanent resident date and mark the deadline.
• Collect proof that you moved in and occupied the home as your principal residence from within 60 days after registration, other than the documents the Ministry does not accept.
• Confirm who was named on title and whether any taxable trustee was involved.
• Have a lawyer review your file if the dates are close or your status changed around closing.

Frequently asked questions