The Non-Resident Speculation Tax (NRST) rate was increased to 20% and expanded provincewide effective March 30, 2022, Prior to March 30, 2022, the NRST was a 15% tax on the purchase of an interest in residential property in the Greater Golden Horseshoe Region (GGH) of Ontario.

Important changes in exemptions from NRST are made, and certain previous exemptions such as the International Student NRST Rebate or the Foreign National Working in Ontario NRST Rebate are eliminated.

What exemptions from NRST are still available?

An exemption may be available if the transferee is

• a nominee (under the Ontario Immigrant Nominee Program),
• a protected person (refugee protection as conferred under section 95 of the Immigration and Refugee Protection Act (Canada)), or
• a spouse of a Canadian citizen, a permanent resident of Canada, a nominee or a protected person.

The Ontario Ministry of Finance’s official website provides detailed descriptions of each category of the available NRST exemptions as well as the transition provisions for those who entered a purchase and sale agreement prior to March 30, 2022, and the closing is scheduled after that date.

The link to the website: https://www.fin.gov.on.ca/en/bulletins/nrst/