CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Ontario To Introduce Foreign Buyers Property Tax

Ontario To Introduce Foreign Buyers Property Tax

by Mike Godfrey, Tax-news.com, Washington

21 April 2017


The Ontario Government will introduce a 15 percent Non-Resident Speculation Tax on purchases of residential property in the Greater Golden Horseshoe region.

According to the Government, the NRST will help to address unsustainable demand in the region. Toronto is among the areas included in the GGH.

The measure forms part of the Government's 16-point Fair Housing Plan. The NRST will affect non-Canadian residents, non-permanent residents, and non-Canadian corporations.

The proposed tax will apply to transfers of land that contain at least one and not more than six single family residences. Such residences include detached and semi-detached properties, townhomes, and condominiums. It will not apply to transfers of other types of land, including multi-residential apartment buildings, agricultural land, or commercial/industrial land.

Refugees and nominees under the Ontario Immigrant Nominee Program will not be subject to the NRST. A rebate will be available for those who subsequently attain citizenship or permanent resident status, as well as foreign nationals working in Ontario and international students.

If passed, the NRST will be effective as of April 21, 2017.

The provincial Government will also introduce legislation to allow the City of Toronto, and potentially other interested municipalities, to introduce a vacant homes property tax to encourage property owner to sell unoccupied units or rent them out.

The Government said it will also work to better understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market. It will partner with the Canada Revenue Agency to explore more comprehensive reporting requirements, to ensure that correct federal and provincial taxes, including income and sales taxes, are paid on real estate purchases and sales in Ontario.

In addition, it will seek to ensure that property tax for new multi-residential apartment buildings is charged at a similar rate as other residential properties.

Average house prices in the Toronto region reached CAD916,567 (USD680,809) in March 2017, up 33.2 percent on the previous year.

Ontario is the second Canadian province to introduce a tax on foreign buyers. An additional property transfer tax is applied at 15 percent on residential property transfers to foreign entities in the Greater Vancouver Regional District. The measure has been in force since August 2016.

TAGS: tax | sales tax | property tax | tax avoidance | speculation | real-estate | legislation | tax rates | Canada | tax reform

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

 Email: 
 Password: 

Login »

Forgotten your password?







Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »