Foreign Buyer Tax NRST


What is the Non-resident speculation tax?
 

The full name of the foreign buyer tax is Non-Resident Speculation Tax, or NRST. NRST applies to foreign buyers who purchase residential properties in the Greater Golden Horseshoe Region (GGH) on or after April 21, 2017, and a 15% foreign buyer tax is levied.

Eligibility for a refund of the NRST is:

  • Obtained within 4 years of purchasing the house Canadian citizens or permanent residents
  • International students continue to stay in Ontario after purchasing a house Two years of full-time study
  • Foreigners working in Ontario must hold Valid work permit Worked full-time in Ontario for at least one year. Full-time means working at least 30 hours per week or a total of at least 1,560 hours in a 12-month period
During the period from the purchase of the house to the application for refund, the buyer must absolutely own the house or jointly own it with his spouse. The property must be occupied by the buyer and cannot be resold or rented out! After meeting the application conditions, the principal and interest will be refunded.


What is the Greater Golden Horseshoe Region (GGH)?


An urban region in southern Ontario. GGH is comprised of the following cities, counties, and regional municipalities (partial regions are listed below):
  • City of Toronto
  • City of Brantford
  • City of Guelph
  • City of Hamilton
  • Regional Municipality of Niagara
  • Regional Municipality of Waterloo


What kind of people need to pay 15% Ontario foreign buyers tax NRST?

  • Non-Canadian citizens;
  • Foreign nationals who do not have permanent residency in Canada;
  • Foreign companies;
  • Companies controlled by foreigners;
  • A Canadian company controlled by a foreign company;
  • The trustee of the trust is a foreign person;
  • The trustee of the trust is a Canadian citizen or permanent resident of Canada, but the corporate beneficiary is a foreign person.

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