Non Resident Speculation Tax for Property Buyers

We get a lot of phone calls about how to get Foreign Buyers Tax or NRST rebate when buying a property on a work permit.  Here is a short reply.

What is NRST?

The Non‑Resident Speculation Tax (NRST) is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (which includes Toronto, Mississauga, Brampton, Halton, Hamilton among others) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees. Learn more about latest rules, requirements and exceptions at the Finance Ministry’s site.

The NRST applies in addition to the general Land Transfer Tax (LTT) in Ontario.

Rebates

A rebate of the NRST may be available in the following situations:

  1. Foreign national who becomes a permanent resident of Canada – The foreign national becomes a permanent resident of Canada within four years of the date of the purchase or acquisition
  2. International student – The foreign national is a student who has been enrolled full-time for a continuous period of at least two years from the date of purchase or acquisition in an “approved institution” (under section 8 of Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario. Full-time means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year, or
  3. Foreign national working in Ontario – The foreign national has legally worked full-time under a valid work permit in Ontario for a continuous period of at least one year since the date of purchase or acquisition. Full-time means an employment position that requires no fewer than 30 hours of paid work per week over a 12-month period and no fewer than a total of 1,560 hours of paid work over that period.
    To qualify for a rebate, the foreign national must exclusively hold the property, or hold the property exclusively with his or her spouse. The property must also have been occupied as the foreign national’s (and if applicable his or her spouse’s) principal residence for the duration of the period that begins within 60 days after the date of the purchase or acquisition.

Ontario Immigrant Nominee Program (OINP)

Learn how foreign workers, international students, business owners or entrepreneurs from outside of Canada can apply for permanent residence in Ontario, or how Ontario businesses can recruit international talent.

The Ontario Immigrant Nominee Program (OINP) is the province’s economic immigration program.

Foreign workers, international students and others with the right skills, experience and education apply to the OINP for a nomination. The OINP recognizes and nominates people for permanent residence who have the skills and experience the Ontario economy needs, and the Government of Canada makes the final decision to approve applications for permanent residence.

A rebate of the NRST may be available in the following situations:

Foreign national who becomes a permanent resident of Canada – The foreign national becomes a permanent resident of Canada within four years of the date of the purchase or acquisition

International student – The foreign national is a student who has been enrolled full-time for a continuous period of at least two years from the date of purchase or acquisition in an “approved institution” (under section 8 of Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario. Full-time means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year, or

Foreign national working in Ontario – The foreign national has legally worked full-time under a valid work permit in Ontario for a continuous period of at least one year since the date of purchase or acquisition. Full-time means an employment position that requires no fewer than 30 hours of paid work per week over a 12 month period and no fewer than a total of 1,560 hours of paid work over that period.

For more information on NRST, contact:

Ministry of Finance
Land Tax Section
33 King Street West
Oshawa ON L1H 8H9

Toll free:1‑866‑668‑8297

Buying a Property on Work Permit:

Attend our first time buyer session to explore more. We also put you in touch with real estate lawyers who can help refund your NRST once you become eligible for the rebate. Learn more about buying a property on work permit.