Read the Ministry of Finance bulletin here.
There will be a transitional period for Agreements of Purchase and Sale entered before March 30th 2022. The previous Non-Resident Speculation Tax (NRST) rate of 15% for the Golden Horseshoe Region applies for any APS entered prior to the aforementioned date. The new NRST changes were implemented by the Ontario government to reduce foreign demand for Ontario housing in the hopes of slowing down the housing market.
Any foreign national (individuals who are not Canadian citizens or permanent residents of Canada) who purchases property in Ontario will be subject to the 20% NRST from March 30th onward.
Furthermore, the NRST rebate for International Students and Foreign Nationals Working in Ontario no longer applies from March 30th 2022 onwards. If you were relying on this rebate and the agreement was entered into prior to March 30th, you can still claim the rebate but the application must be submitted before March 31st 2025.
If you are still eligible to claim an NRST rebate under the old rules before the new NRST changes, please contact us. We help people apply for rebates of both the NRST and LTT (Ontario and Toronto). As of November 2022, these rebate applications are taking almost one year to process from the time of submitting the documentation. It is vitally important to provide the appropriate evidence necessary for the application to avoid further delay or rejection especially as there is now a new deadline for applying for such rebates; March 31st 2025.