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 (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (“foreign entities”) and taxable trustees.
Upon the enactment of legislation, the NRST will be effective as of April 21, 2017.
Binding agreements of purchase and sale signed on or before April 20, 2017 are not subject to the NRST.
The Ministry of Finance recommends that all transfers registered on or after April 21, 2017, include one of the three statements regarding the Non-Resident Speculation Tax (NRST) as set out in the “Payment of the NRST” section below.
Completing this will become mandatory as of May 5, 2017. However, during the transition period from April 21 to May 5, 2017, omitting one of these statements will not affect the registration of the transaction or incur penalties.
The NRST applies in addition to the general land transfer tax in Ontario.
The GGH includes the following geographic areas: Brant, Dufferin, Durham, Haldimand, Halton, Hamilton, Kawartha Lakes, Niagara, Northumberland, Peel, Peterborough, Simcoe, Toronto, Waterloo, Wellington and York.
For more information visit: http://www.fin.gov.on.ca/en/bulletins/nrst/nrst.html