The non-resident speculation tax (NRST) was originally a 15% tax, later increased to 20%, and is now a 25% tax on the purchase or acquisition of an interest in residential property located anywhere in Ontario 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 tax is paid on closing through the buyer’s real estate law firm T.


  1. The NRST applies to the transfer of land which contains at least one and not more than six single-family residences (residential property).
  2. The NRST is not pro-rated to the percentage of ownership. No workaround for tenants-in-common.
  3. The NRST applies to foreign entities (even one person):
    • Foreign national: an individual who is not a citizen or permanent resident;
    • Foreign corporation:
    • Company not incorporated in Canada;
    • Canadian company controlled by a foreign entity.


  1. The NRST does not apply to multi-residential (6+), agricultural, commercial or industrial.
  2. The NRST does not apply to an assignment from a foreign entity. However, if the assignment is to a foreign entity, then NRST will apply.
  3. Canadian citizens outside of Canada for more than 183 days are not subject to NRST (snowbirds).
  4. The NRST does not apply where a Canadian citizen and his/her foreign national spouses are purchasing property as their principal residence, provided no other foreign nationals are acquiring an interest in the property;
    Definition of Spouse:
    • Couples who are married
    • Couples who are not married but who have cohabited together:
    a) Continuously for a period of 3 years or more;
    b) In a permanent relationship with a natural or adoptive child(ren)
  5. The NRST does not apply where a foreign national:
    • Has received a Provincial Nomination Certificate under the Ontario
    Immigrant Nominee Program at the time of the purchase or acquisition
    • Has received Confirmation of Permanent Residence