Posted On: Monday, June 5, 2017
New Non-Resident Speculation Tax (NRST) could affect some homebuyers in Simcoe County (but not Grey County).
As part of Ontario’s Fair Housing Plan, legislation has been introduced which implements a new 15-per-cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations. The Greater Golden Horseshoe includes Brant, Dufferin, Durham, Haldimand, Halton, Hamilton, Kawartha Lakes, Niagara, Northumberland, Peel, Peterborough, Simcoe, Toronto, Waterloo, Wellington and York (see map below). The tax applies to transfers of land that contain at least one and not more than six single family residences. "Single family residences" include, for example, detached and semi-detached homes, townhomes and condominiums. The NRST would not apply to transfers of other types of land including multi-residential rental apartment buildings, agricultural land or commercial/industrial land. The Ministry of Finance recommends that all transfers registered on or after April 21, 2017 include one of the three statements regarding the NRST. Completing this became mandatory as of May 5, 2017.
This tax has some interesting rules, for example, if the buyer becomes a resident of Canada within 4 years, the tax may be refundable.
More details at: https://www.fin.gov.on.ca/en/bulletins/nrst/