1855.711.7555
  >  Real Estate Law   >  Recent Changes to the Ontario Non-Resident Speculation Tax (NRST)
Recent Changes to Non-Resident Speculation Tax (NRST) in Ontario

Recent Changes to the Ontario Non-Resident Speculation Tax (NRST)

What is the Non-Resident Speculation Tax?

The Non-Resident Speculation Tax (NRST) is a tax on the purchase or acquisition of an interest in land by individuals who are not Canadian citizens or permanent residents. The tax applies to residential properties, including vacation homes and investment properties. The NRST came into effect on April 20, 2017.

The Changes

Previously, the NRST was 15% of the value of the property. The tax has now been increased to 20% and expanded to apply provincewide. This means that if you are not a Canadian citizen or permanent resident and you purchase a property in any of these areas, you will be subject to the NRST.

What does this mean for you?

If you are a non-resident of Canada and you are thinking of purchasing property in Ontario, it is important that you consult with a real estate lawyer to ensure that you understand your obligations under the NRST.

The real estate lawyers at TheClosing.ca can help you navigate the NRST and advise you on your obligations. Contact us today to schedule a consultation.

Exemptions

The NRST is not applicable if you are a Canadian citizen or permanent resident. There are also a few other exemptions, including:

(1) Protected Person:  You may be exempt from the NRST if you have been granted protected person status under s. 95 of the Immigration and Refugee Protection Act

(2) Spousal Exemption: You may be exempt from the NRST if you are a spouse of a Canadian citizen, Permanent resident or a protected person.

(3) Nominee Exemption: You may be exempt from the NRST if you have been nominated under the Province of Ontario through its Ontario Immigrant Nominee Program.

If you think you may be exempt from the NRST, it is important that you consult with an accountant to determine if you meet the requirements for an exemption.

The Consequences of Not Paying the NRST

The NRST is paid through Teraview, Ontario’s electronic land registration system, at the time of registration.

If you purchase a property without paying the NRST, you will be required to pay the tax plus interest and penalties. In addition, you may be subject to enforcement action by the Ministry of Finance, which could include seizure of the property.

Consultation

If you have any questions about the NRST or real estate law in general, contact TheClosing.ca today. Our real estate lawyers would be happy to answer your questions and help you navigate the new reality of higher taxes for non-residents.

by
Real Estate Law
0

Post a Comment

TheClosing.ca is a real estate law firm based
in Toronto, Ontario. Our knowledgeable staff is
here to assist you with every part of your real
estate transaction.
TheClosing.ca is a real estate law firm based in Toronto, Ontario. Our knowledgeable staff is here to assist you with every part of your real estate transaction.

Our Expertise

Service Areas

Head Office

© 2022 TheClosing.ca. All Rights Reserved

Youtube Twitter Facebook-f Instagram
  • All communications with your lawyer & law clerk via phone and/or email
  • One in-person or virtual signing appointment
  • Review of the Agreement of Purchase & Sale
  • Communication with the realtor’s office for commission payments
  • Preparation of all legal closing documentation
  • Discharge of one mortgage (If Applicable) 
  • All internal disbursements such as photocopies, faxes, couriers etc.
  • A stress-free closing day!

As with every law firm, disbursements are extra.  In real estate transactions, these fees differ and depend on the type of transaction. These can include fees for title search, title insurance, deed registration, certified cheques and so forth.

Nothing is due until the closing day itself.  Disbursements and the lawyer fees are drawn from the closing proceeds (if selling) or from the down-payment cheque (if buying).

Contact us for any questions or a detailed quote. 

What’s included in the fixed one-time fee?

AGREEMENT TO TERMS

These Terms and Conditions constitute a legally binding agreement made between you, whether personally or on behalf of an entity (“you”) and [business entity name] (“we,” “us” or “our”), concerning your access to and use of the [website name.com] website as well as any other media form, media channel, mobile website or mobile application related, linked, or otherwise connected thereto (collectively, the “Site”). 
You agree that by accessing the Site, you have read, understood, and agree to be bound by all of these Terms and Conditions. If you do not agree with all of these Terms and Conditions, then you are expressly prohibited from using the Site and you must discontinue use immediately.
Supplemental terms and conditions or documents that may be posted on the Site from time to time are hereby expressly incorporated herein by reference. We reserve the right, in our sole discretion, to make changes or modifications to these Terms and Conditions at any time and for any reason. 
We will alert you about any changes by updating the “Last updated” date of these Terms and Conditions, and you waive any right to receive specific notice of each such change. 

It is your responsibility to periodically review these Terms and Conditions to stay informed of updates. You will be subject to, and will be deemed to have been made aware of and to have accepted, the changes in any revised Terms and Conditions by your continued use of the Site after the date such revised Terms and Conditions are posted.

INTELLECTUAL PROPERTY RIGHTS

Unless otherwise indicated, the Site is our proprietary property and all source code, databases, functionality, software, website designs, audio, video, text, photographs, and graphics on the Site (collectively, the “Content”) and the trademarks, service marks, and logos contained therein (the “Marks”) are owned or controlled by us or licensed to us, and are protected by copyright and trademark laws and various other intellectual property rights and unfair competition laws of the United States, foreign jurisdictions, and international conventions. 

The Content and the Marks are provided on the Site “AS IS” for your information and personal use only. Except as expressly provided in these Terms and Conditions, no part of the Site and no Content or Marks may be copied, reproduced, aggregated, republished, uploaded, posted, publicly displayed, encoded, translated, transmitted, distributed, sold, licensed, or otherwise exploited for any commercial purpose whatsoever, without our express prior written permission.


Provided that you are eligible to use the Site, you are granted a limited license to access and use the Site and to download or print a copy of any portion of the Content to which you have properly gained access solely for your personal, non-commercial use. We reserve all rights not expressly granted to you in and to the Site, the Content and the Marks.


USER REPRESENTATIONS

You may be required to register with the Site. You agree to keep your password confidential and will be responsible for all use of your account and password. We reserve the right to remove, reclaim, or change a username you select if we determine, in our sole discretion, that such username is inappropriate, obscene, or otherwise objectionable.
You may not access or use the Site for any purpose other than that for which we make the Site available. The Site may not be used in connection with any commercial endeavors except those that are specifically endorsed or approved by us. 

PRIVACY POLICY

We care about data privacy and security. Please review our Privacy Policy [CLICK HERE]/posted on the Site]. By using the Site, you agree to be bound by our Privacy Policy, which is incorporated into these Terms and Conditions. Please be advised the Site is hosted in the United States. 
If you access the Site from the European Union, Asia, or any other region of the world with laws or other requirements governing personal data collection, use, or disclosure that differ from applicable laws in the United States, then through your continued use of the Site, you are transferring your data to the United States, and you expressly consent to have your data transferred to and processed in the United States. 
[Further, we do not knowingly accept, request, or solicit information from children or knowingly market to children. Therefore, in accordance with the U.S. Children’s Online Privacy Protection Act, if we receive actual knowledge that anyone under the age of 13 has provided personal information to us without the requisite and verifiable parental consent, we will delete that information from the Site as quickly as is reasonably practical.]
Our Terms & Conditions
I Agree