Non-Resident Speculation Tax

Greater Golden Horseshoe Region Data Summary:
Land Transfer Tax Additional Information

Purchases by Foreign Entities in Greater Golden Horseshoe Region (GGH)

Land Registry Offices (LRO)1 Total Transactions (A) Foreign Transactions
(B)
Foreign Transactions (%)
(C = B / A)
Distribution of Foreign Transactions within the GGH (%)
Durham 1,072 23 2.1 2.7
Halton 1,109 41 3.7 4.8
Niagara South & North 1,017 26 2.6 3.0
Peel 1,848 70 3.8 8.2
Simcoe 1,178 11 0.9 1.3
Toronto 5,940 429 7.2 50.1
Waterloo 1,507 45 3.0 5.3
Wellington 512 12 2.3 1.4
Wentworth 918 16 1.7 1.9
York 1,974 180 9.1 21.0
Brant, Dufferin, Haldimand, Northumberland, Peterborough, Victoria 2 1,207 4 0.3 0.5
Total 18,282 857 4.7 100#
# - Total does not add due to rounding
[1] Because some LRO boundaries do not coincide with municipal boundaries, the data may not fully represent what is covered in the GGH and may include areas outside of the GGH. Any discrepancy is expected to be insignificant.
[2] Brant, Dufferin, Haldimand, Northumberland, Peterborough and Victoria are combined due to very low transaction counts.

 

Purchases by Foreign Entities in Greater Golden Horseshoe Region

Map of Purchases by Foreign Entities in Greater Golden Horseshoe Region

* Sub-regions of the GGH that had very low transaction counts involving foreign entities are not presented in the diagram above.

Graphic description: The map shows the percentage of purchases by foreign entities in the Greater Golden Horseshoe Region. Corresponding data for each region is included in the Foreign Transactions percentage column (column four) in the table above.

According to preliminary data released by the government, approximately 4.7 per cent of the 18,282 transactions between April 24, 2017 and May 26, 2017 in the Greater Golden Horseshoe Region involved at least one foreign entity where purchasers completed the electronic additional information form. The completion of this form was voluntary between April 24, 2017 and May 5, 2017 and became mandatory on May 6, 2017.

A regional breakdown of the 4.7 per cent shows that the vast majority of purchases occurred in the Greater Toronto Area , with approximately 50 per cent of transactions in the City of Toronto and 21 per cent in York Region. 

The Non-Resident Speculation Tax (NRST) does not apply to agreements of purchase and sale signed on or before April 20, 2017. NRST exemptions are available to individuals nominated under the Ontario Immigrant Nominee Program, refugees and those who purchase residential property with a spouse who is a Canadian citizen, permanent resident of Canada, nominee or refugee. Rebates of the NRST may also be available to individuals who become permanent residents of Canada, who are international students or who have been working in Ontario. Both the NRST exemptions and rebates are subject to meeting specific eligibility criteria.

As a result, the 4.7 per cent should not be taken as a measure of transactions subject to NRST.

Douglas Porter, BMO’s Chief Economist, said recently that Ontario’s housing measures hit the bullseye, accomplishing almost exactly what the government was hoping to achieve, a calmer market without collapse (source: https://economics.bmocapitalmarkets.com/economics/amcharts/B19VRD-GG531N-6S6JB2-19VNS7-Z90.pdf).


Non-Resident Speculation Tax Update

Ontario has been collecting enhanced real estate data through the land transfer tax system since April 24, 2017 to better understand market forces impacting Ontario’s housing market. New data, including Canadian citizenship and permanent resident status, will help determine who may be subject to the Non-Resident Speculation Tax (NRST) announced in the Fair Housing Plan on April 20, 2017. 

From April 24 to May 26, 2017, 18,282 residential and agricultural properties were purchased or acquired in the Greater Golden Horseshoe region. Of the 18,282, approximately 4.7 per cent of the properties were purchased or acquired by individuals who are not citizens or permanent residents of Canada, or by foreign corporations. These transactions may be subject to the NRST.

  • The NRST was announced on April 20, 2017 and does not apply to agreements of purchase and sale signed on or before April 20, 2017. 
  • There are NRST exemptions available to individuals nominated under the Ontario Immigrant Nominee Program, refugees and those who purchase residential property with a spouse who is a Canadian citizen, permanent resident of Canada, nominee or refugee. 
  • Rebates of the NRST are available to individuals who have been working in Ontario, have become permanent residents of Canada and international students. 

NRST exemptions and rebates are subject to meeting specific eligibility criteria.

The government will release an update in the fall when data will more accurately reflect properties purchased or acquired by individuals who are not citizens or permanent residents of Canada, or by foreign corporations following the implementation of the NRST.


The implementation of the Non-Resident Speculation Tax is subject to the approval of the legislature. [Archive]

The Non-Resident Speculation Tax (NRST) is a 15-per-cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (“foreign entities”) and taxable trustees.

The NRST applies in addition to the general land transfer tax in Ontario.

The GGH includes the following geographic areas: Brant, Dufferin, Durham, Haldimand, Halton, Hamilton, Kawartha Lakes, Niagara, Northumberland, Peel, Peterborough, Simcoe, Toronto, Waterloo, Wellington and York.

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