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Non-Resident Speculation Tax

As of April 21, 2017, Ontario has imposed a 15% Non-Resident Speculation Tax (“NRST”) on all Foreign Nationals, Foreign Corporations, and Taxable Trustees purchasing or acquiring an interest in select residential real property located within the Greater Golden Horseshoe area, including Toronto, Dufferin, and York Region. The class of property subject to the tax is restricted to single-family dwellings containing at least one, but not more than six, single-family residences. A detached home, townhouse, semi-detached home, and condominium unit would each be considered ‘a single family residence’ for purposes of the NRST.Contact Ali Ahmari as a Real Estate Lawyer in Thornhill.

For purchases of a multi-residential rental apartment building containing more than six units, or any agricultural, commercial or industrial land, the NRST does not apply. Similarly, an individual purchasing a property as a trustee of a mutual fund trust, a real estate investment trust, or specified investment flow through trust are also relieved of the tax.
The NRST is calculated on the full value of the property so long as
at least one purchaser falls under the category of a non-resident, and applies on top of the provincial and municipal land transfer tax. In the event of a combined transfer, the NRST would only apply to that portion of the consideration attributable to the residential property qualifying for the tax.
There are also exceptions to the NRST whereby an individual who would ordinarily be subjected to the tax could claim an exemption. Such exemptions from the NRST are generally available to purchases by a Foreign National qualifying as a Nominee; a protected person under section 95 of the Immigration and Refugee Protection Act; or a spouse of a Canadian citizen, permanent resident of Canada, nominee, or protected person.
However, those who do not qualify for an exemption may still apply for a rebate if they meet one of the following conditions:
They become a permanent resident of Canada within 4 years of the date of purchase;
They are enrolled “full-time” as a student for a continuous period of at least 2 years from the date of purchase in an “approved institution” at an Ontario Campus; or
They have legally worked in Ontario full time under a valid work permit for a continuous period of at least 1 year since the purchase.
In addition to the foregoing, the property must also be held exclusively by the Foreign National and his or her spouse, if any, and be used as his or her principal residence for the duration of the period.
Applications for the rebate may be submitted within 4 years after the day in which the NRST became payable—with the exception of a Foreign National who becomes a permanent resident of Canada. In that case, the rebate must be submitted within 90 days of the person becoming a permanent resident. However, no applications may be made following 4 years and 90 days after the payment deadline.For more information Contact us as a 
Persian lawyer in Toronto


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