Ontario Ministry of Finance Increases Non-Resident Speculation Tax Rate

Effective October 25, 2022, the government of Ontario has increased the Non-Resident Speculation Tax (“NRST”) rate to 25 percent.

The increase follows changes made to the tax earlier in 2022. Introduced in April 2017, the NRST initially applied a 15 percent tax on the value of the consideration paid for the transfer of certain residential real estate in the Greater Golden Horseshoe Region. Effective March 30, 2022, the government of Ontario increased the rate to 20 percent, expanded the application province-wide, and eliminated certain rebates.

The NRST applies to the purchase price of an interest in a residential property (with between one and six family units) in Ontario purchased by foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada), or by foreign corporations or taxable trustees. Foreign corporations are generally those formed outside Canada, or formed inside Canada and controlled by foreign nationals or other foreign corporations. Taxable trustees are generally trustees that are themselves foreign nationals or foreign corporations or act as trustees of a trust established for the benefit of a foreign national or foreign corporation.

Prepared by: Rebecca Loo , Brendan Forrest

Rebecca Loo is an associate working out of the Toronto office of Thorsteinssons LLP. Rebecca’s practice focuses on Canadian commodity tax matters, including the Goods and Services Tax (GST), Harmonized Sales Tax (HST), and provincial sales taxes.  She has written… more »

Brendan Forrest is an associate working out of the Toronto office of Thorsteinssons LLP. Brendan’s practice focuses on corporate tax advisory and planning services. Brendan earned his Bachelor of Arts (Honours) from St. Michael’s College at the University of Toronto… more »