The Non- Resident Speculation Tax (NRST)

 

The Non- Resident Speculation Tax (NRST) applies to foreign entities or taxable trustees who purchase or acquire residential property in the GGH.

A foreign entity is either a foreign corporation or a foreign national.

A foreign national, as defined in the Immigration Refugee Protection Act(Canada), is an individual who is not a Canadian citizen or permanent resident of Canada.

A foreign corporation is a corporation that is

A corporation that is not incorporated in Canada.

A corporation, the shares of which are not listed Income Tax Act (Canada), by

a foreign national

a corporation that is not incorporated in Canada

A corporation that would, if each share of the corporation's capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled, directly or indirectly in any manner whatsoever, within the meaning of section 256 of the Income Tax Act (Canada), by the particular person.

A taxable trustee means a trustee of:

a trust with at least

a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity.

Taxable trustee does not include a trustee acting for the following types of trusts:

A mutual fund trust within the meaning of subsection 132 (6) of the Income Tax Act (Canada).

A real estate investment trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).

A SIFT trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).

Nominee – A foreign national who is nominated under the Ontario Immigrant Nominee Program (nominee) at the time of the purchase or acquisition, and the foreign national has applied or certifies that they will apply to become a permanent resident of Canada

Protected person – A foreign national on whom refugee protection is conferred (protected person) under 95 of the Immigration and Refugee Protection Act(Canada) at the time of the purchase or acquisition or,    

Spouse – A foreign national who jointly purchases residential property with a spouse, who is a Canadian citizen, permanent resident of Canada, nominee or protected person.

To qualify for an exemption, the foreign national (and if applicable their spouse) must certify they will occupy the property as their principal residence.

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Foreign national who becomes a permanent resident of Canada within four years of the date of the purchase or acquisition

International student – The foreign national is a student who has been enrolled full-time for a continuous period of at least two years from the date of purchase or acquisition in an “approved institution” (under section 8 of Ontario Regulation 70/17of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario. Full-time means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year, or

Foreign national working in Ontario – The foreign national has legally worked full-time under a valid work permit in Ontario for a continuous period of at least one year since the date of purchase or acquisition. Full time means an employment position that requires no fewer than 30 hours of paid work per week over a 12 month period and no fewer than a total of 1,560 hours of paid work over that period.

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To qualify for a rebate, the foreign national must exclusively hold the property, or hold the property exclusively with his or her spouse as the foreign national's (and if applicable his or her spouse's) principal residence for the duration of the period that begins within 60 days after the date of the purchase or acquisition.

Rebates must be applied for within four years after the day on which the NRST became payable, except for the rebate for a foreign national who becomes a permanent resident of Canada.

The rebate for a foreign national who becomes a permanent resident of Canada must be applied for within 90 days of the foreign national becoming a permanent resident, and no application may be made more than four years and 90 days from the date the NRST became payable.