Foreign Nationals Can Legally Avoid Ontario's Foreign Buyer Tax

Overview

On April 20, 2017, the Ontario Government announced plans to impose a 15% tax on foreign nationals, in order to cool the real estate market in the Greater Toronto Area. The Non-Resident Speculation Tax ("NRST") was implemented on April 21, 2017.

As of April 21, 2017, the NRST now applies to all transfers of residential real estate located in the Greater Golden Horseshoe ("GGH") region by (a) individuals who are not citizens or permanent residents of Canada, (b) foreign corporations, and (c) taxable trustees. The term "foreign corporation" is defined as one of the following:

1. A corporation that is not incorporated in Canada.
2. A corporation, the shares of which are not listed on a stock exchange in Canada, that is incorporated in Canada and is controlled, directly or indirectly in any manner whatever, by one or more of the following:
   1. A foreign national;