Before calculating NRST, note that Canada's **prohibition on the purchase of residential property by non-Canadians (Foreign Buyer Ban)** has been extended. However, work permit holders who have worked in Canada for at least 183 days in the year of purchase and have not purchased other properties are exempt from the ban, but may still be subject to provincial NRST.
What is the NRST?
The Non-Resident Speculation Tax (NRST) is a provincial tax assessed on the purchase price of residential property. It is charged in addition to standard Land Transfer Taxes:
- Ontario NRST: A **20% tax** applied to all residential property purchases across the entire province of Ontario by individuals who are not Canadian citizens or Permanent Residents.
- British Columbia NRST: B.C. charges a **20% Additional Property Transfer Tax** on foreign buyers purchasing residential property in designated regional districts (e.g. Metro Vancouver, Capital Regional District).
- Liability: If a property is purchased jointly by a Canadian citizen and a foreign national (who is not their spouse), the 20% NRST applies to the **entire purchase price**, not just the foreign national's share.
NRST Rebate Rules (Permanent Resident Rebate)
Ontario offers a full rebate of the 20% NRST plus interest under strict guidelines:
- PR Acquisition Deadline: You must become a Canadian Permanent Resident (PR) within **4 years** from the date the purchase transaction was completed.
- Sole Ownership: The property must be held solely by the applicant (and/or their spouse).
- Principal Residence: The applicant must occupy the home as their principal residence within **60 days** of closing, and continue to do so until filing the rebate.
- Filing Deadline: You must apply for the rebate within **90 days** of becoming a Permanent Resident.
Common Exemptions from the 20% Tax
You may be exempt from paying NRST at the time of purchase if you meet one of the following:
- Nominee Exemption: You are a foreign national who receives a provincial nomination under the Ontario Immigrant Nominee Program (OINP) at the time of purchase.
- Protected Person: You have been granted refugee status in Canada.
- Spousal Exemption: You are a foreign national purchasing a property jointly with your spouse who is a Canadian citizen, Permanent Resident, or OINP Nominee.
This guide compiles official provincial tax guidelines and speculation tax criteria sourced directly from:
• Ontario Ministry of Finance Non-Resident Speculation Tax Guide: ontario.ca/nrst-tax
• B.C. Government Additional Property Transfer Tax rules: gov.bc.ca/bc-foreign-buyer-tax