- Ontario's Non-Resident Speculation Tax is 25%, applies across Ontario, and is charged on top of the general land transfer tax.
- Exemptions depend on your status on closing day and on conditions such as occupying the home within 60 days after registration.
- A buyer who becomes a permanent resident within four years after registration can apply for a rebate, but the deadlines are strict.
If you are a foreign national or a non-resident thinking about buying a home in Ontario, you have probably heard about a provincial tax aimed at foreign buyers. The short answer is that it is still in place, and it can add a large cost to a purchase.
This article explains who the tax applies to, the main exemptions, and how rebates and refunds work. Your own status, the type of property and who is on title all matter, so a lawyer can confirm how the rules apply to you.
What the tax is and where it applies
Ontario's Non-Resident Speculation Tax (NRST) is 25%, effective October 25, 2022, and it 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.
Buying with others: the whole price can be taxed
If any transferee is a foreign entity or taxable trustee, NRST applies to the full value of the consideration, not just that person's share, and every transferee can be liable. This matters if you are buying with a family member, friend or business partner.
Who may be exempt
Exemptions are narrow and depend on your status at the right time. The main ones are below.
| Situation | Key conditions |
|---|---|
| Ontario Immigrant Nominee Program (OINP) nominee | Nominated at the time of purchase, and has applied or certifies they will apply for permanent residence before the nominee certificate expires |
| Protected person | Refugee protection conferred under section 95 of the Immigration and Refugee Protection Act, and status must exist on closing day |
| Buying with a spouse | The spouse is a Canadian citizen, permanent resident, nominee or protected person, and both spouses are named transferees |
For nominees and protected persons, co-owners must be citizens, permanent residents, nominees or protected persons, and all transferees must occupy the home within 60 days after registration. Becoming a nominee after closing does not qualify retroactively.
For this purpose, a 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, and they apply only to registered transfers.
Rebates and refunds
A buyer who becomes a permanent resident within four years after the conveyance is registered can apply for a rebate. 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, but the rebate is not available if a taxable trustee is a transferee.
A refund of NRST that was overpaid or improperly paid must be applied for within four years of paying the tax. The transitional rebates for international students and for foreign nationals working in Ontario are no longer available.
What to do next
- Confirm your immigration status and who will be named on title before you sign an agreement.
- Check whether anyone on title is a foreign corporation or taxable trustee.
- Confirm that every buyer can occupy the home within 60 days after registration if you rely on an exemption or rebate.
- Note your deadlines as soon as you become a permanent resident.
- Keep proof of occupancy, because utility bills, property tax bills and home insurance are not accepted.
Rebate and refund applications are made online through the Ministry of Finance services portal, or on Form 9996. Because the rate and the rules have changed several times, confirm the current position with a real estate lawyer before you commit to a purchase.
Frequently asked questions
Is the Ontario foreign buyer tax still in effect?
Yes. The NRST is 25% and applies across Ontario, in addition to the general land transfer tax.
Does the tax apply to condos?
It applies to land with one to six single-family residences, and since March 27, 2024 that includes condo parking and storage units. Whether a particular condo purchase is caught depends on the facts, so confirm with a lawyer.
Can I get the tax back if I become a permanent resident later?
Possibly. If you become a permanent resident within four years after the conveyance is registered, you can apply for a rebate, and the application must reach the Ministry of Finance within 180 days of becoming a permanent resident. You must also have occupied the home as your principal residence from within 60 days after registration.
How long do I have to ask for a refund of overpaid tax?
A refund of overpaid or improperly paid NRST must be applied for within four years of paying the tax. Applications are made online through the Ministry of Finance services portal or on Form 9996.
Sources
- Ontario Ministry of Finance – Non-Resident Speculation Tax — ontario.ca
- Ontario Ministry of Finance – NRST exemptions — ontario.ca
- Ontario Ministry of Finance – NRST rebates and refunds — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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