As expected, the Government of Ontario has introduced a new
non-resident speculation tax ("NRST")
that takes effect on April 21, 2017. The NRST is a 15% tax payable
on the purchase of an interest in residential property located in
the "Greater Golden Horseshoe" area (which includes
Toronto and surrounding areas) by "foreign entities" and
"taxable trustees" (as described below). The NRST applies
in addition to any land transfer tax in Ontario real estate
transactions.
The Government of Ontario confirmed that deals entered into
under a binding agreement of purchase and sale signed before April
21, 2017, will not be subject to the NRST.
Who is Affected by the Tax?
The NRST will apply to "foreign entities" or
"taxable trustees" that purchase residential real estate
in the Greater Golden Horseshoe area. A foreign entity is either a
foreign national or a foreign corporation. A foreign national is an
individual who is not a Canadian citizen or a permanent resident
