Foreign Buyer Tax (NRST).
Ontario’s 25% Non-Resident Speculation Tax — calculated against the verified rules, with exemption and PR-rebate paths surfaced.
25%, with exits.
The Non-Resident Speculation Tax was Ontario’s response to a perceived rush of foreign capital into Toronto residential. It is paid at closing, separate from the Land Transfer Tax — and on a $5M purchase, it’s a $1.25M line item.
The rate is 25%. It applies to the full value of consideration, on designated land containing 1–6 single-family residences anywhere in Ontario. As of March 27, 2024, parking and storage units in condominiums are also included.
The exemptions are narrow. Only three: Ontario Immigrant Nominee (OINP) participants, protected persons (refugees), and spouses of Canadian citizens or permanent residents jointly purchasing as principal residence. The student and foreign-worker rebates were repealed; their March 31, 2025 deadline has passed.
The Permanent Resident rebate
The most common exit: a foreign buyer who becomes a Canadian permanent resident within 4 years of conveyance can claim a full refund of NRST paid. Strict conditions — principal residence within 60 days, continuous occupation, and the rebate application filed within 180 days of becoming a PR. Many international buyers structure their Ontario purchase against this 4-year window.
The federal ban (separate regime)
Independent from NRST: the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (in force Jan 1, 2023, extended to Jan 1, 2027) bans most non-Canadians from buying residential property of 3 units or fewer in any Census Metropolitan Area. A buyer who is exempt from NRST may still be banned by the federal Act, and vice versa. Both regimes apply at closing.
Three foreign buyers.
$3,000,000 purchase
$5,000,000 purchase
$10,000,000 purchase
Frequently asked.
What is Ontario's Non-Resident Speculation Tax (NRST) and what is the rate?
The NRST is a 25% tax on the value of consideration when a foreign national, foreign corporation, or taxable trustee acquires designated land in Ontario. The rate increased from 20% to 25% on October 25, 2022, and applies province-wide (the original Greater Golden Horseshoe-only scope was expanded on March 30, 2022). The tax is paid at closing, separate from the Land Transfer Tax.
Who is considered a foreign buyer for NRST purposes?
A foreign national (an individual who is not a Canadian citizen or permanent resident), a foreign corporation (incorporated outside Canada, or controlled by foreign nationals/corporations), or a taxable trustee (a trust where any trustee or beneficiary is a foreign entity, excluding mutual fund trusts, REITs, and SIFT trusts). The foreign-buyer test is applied at the time the transfer is registered.
Are there exemptions from NRST?
Three current exemptions: (1) Foreign nationals nominated under the Ontario Immigrant Nominee Program (OINP) at the time of purchase, who have applied or will apply for permanent residence and intend to occupy the property as a principal residence; (2) Protected persons (refugees) under the federal Immigration and Refugee Protection Act; (3) Spouses of Canadian citizens, permanent residents, nominees, or protected persons jointly purchasing as a principal residence. The international student and foreign worker rebates were repealed; their final application deadline (March 31, 2025) has passed.
Is there a rebate available?
Yes — the Permanent Resident Rebate. A foreign buyer who pays NRST and then becomes a Canadian permanent resident within 4 years of the date the conveyance was registered can claim a full refund. They must occupy the property as a principal residence within 60 days of closing and continuously, and apply within 180 days of becoming a PR. There is no partial rebate; it is a full refund or nothing.
Does NRST stack with the Toronto MLTT and Ontario PLTT?
Yes. NRST is paid at closing in addition to the provincial PLTT and (in Toronto) the municipal MLTT. The three taxes are calculated independently. On a $5M Toronto purchase by a foreign buyer, the closing-day tax stack would be approximately: PLTT $111,475 + MLTT $159,975 + NRST $1,250,000 = $1,521,450 before any rebates.
What is the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act?
Separate from NRST. The federal prohibition (in effect Jan 1, 2023; extended to Jan 1, 2027) bans most non-Canadians from purchasing residential property of 3 dwelling units or less located in a Census Metropolitan Area or Census Agglomeration. Penalty: up to $10,000 plus court-ordered sale. Eligibility for federal exceptions does NOT exempt a buyer from NRST, and NRST exemptions do not exempt a buyer from the federal ban. International buyers should consult both regimes with counsel.
When is NRST due — at offer, at closing, or later?
On registration of the conveyance — i.e., at closing. The buyer's lawyer collects NRST as part of the closing-day statement and remits it to the Ministry of Finance. There is no delayed-payment option. The PR rebate is filed AFTER becoming a PR; the buyer carries the full NRST at closing.
For an international buyer pricing a $5M Toronto condo, NRST is the single largest line on the closing statement — bigger than LTT, bigger than HST after rebate, bigger than every legal and registration cost combined. The PR rebate makes it recoverable on a four-year horizon, but the cash needs to be there at closing. Plan the structure before you commit to the deal.
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