The Non Resident Speculation Tax.
Ontario charges a 25 percent Non Resident Speculation Tax when a foreign national, foreign corporation, or taxable trustee buys residential property anywhere in the province. On a 900,000 home that is 225,000 on top of the regular land transfer tax.
Book a 15 minute callWho pays
The tax applies to foreign nationals who are not Canadian citizens or permanent residents, to foreign corporations, and to taxable trustees, on residential property with one to six units. It is due at registration.
The rebate
A foreign national who becomes a permanent resident of Canada within four years of the purchase can apply for a full rebate, provided the property was their principal residence. Khan Law tracks the deadline and files the rebate.
Exemptions
Limited exemptions exist, including for nominees under the Ontario Immigrant Nominee Program, protected persons, and some spouses of citizens or permanent residents. Khan Law confirms whether an exemption applies before closing.
Important considerations
- The tax is province wide, not just the Greater Golden Horseshoe, since March 2022.
- The rate rose to 25 percent in October 2022. Older guidance may show 15 or 20 percent.
- Missing the four year rebate window forfeits the refund.
Frequently asked
Does a permanent resident pay the speculation tax?
No. Canadian citizens and permanent residents are not subject to it. The tax targets foreign nationals, foreign corporations, and taxable trustees.
Can I get the tax back?
Yes if you become a permanent resident within four years and the home was your principal residence. Khan Law files the rebate.