Frequently Asked Questions about the Non‑Resident Speculation Tax

Is the Non‑Resident Speculation Tax related to the requirement to provide additional information?

The obligation to provide additional information is separate and distinct from the application of the proposed Non‑Resident Speculation Tax (NRST). The NRST applies to certain transactions within the Greater Golden Horseshoe Region (GGH). The requirement to provide additional information applies to certain transactions in all of Ontario. More details on the requirement to provide additional information may be found on our webpage Prescribed Information for the Purposes of Section 5.0.1 Form.

I signed my agreement of purchase and sale on April 19, 2017. I am not a Canadian citizen or a permanent resident of Canada. Do I have to pay the NRST?

There is no NRST payable if the both the seller and the buyer signed a binding agreement of purchase and sale on or before April 20, 2017, and if an assignment of the agreement is not entered into after April 20, 2017.

I am a Canadian citizen living outside of Canada and I wish to purchase land in the Greater Golden Horseshoe Region. Will my purchase be subject to the NRST?

If a Canadian citizen (whether living in Canada or not) buys residential land alone or along with other Canadian citizens or with permanent residents of Canada, he or she will not be subject to NRST. It is not relevant whether any of the Canadian citizens live in Canada or not. The reference to “not a permanent resident of Canada” refers to a “permanent resident” as defined in the Immigration and Refugee Protection Act (Canada):" permanent resident means a person who has acquired permanent resident status and has not subsequently lost that status under section 46."

Is the NRST payable on top of the Land Transfer Tax (LTT) or vice versa?

Neither tax is payable on top of the other. NRST and LTT are calculated separately on the value of the consideration for the transfer.

My partner and I are buying a house in Oshawa. I am a citizen of Canada. She is not a citizen or a permanent resident of Canada. Does she have to pay NRST?

If she is not your spouse, NRST will be payable on the full value of the consideration for the transfer of the house. It is not pro‑rated. If your partner is your spouse, as defined in the Land Transfer Tax Act, the transaction will be exempt from NRST if you are acquiring the house together and no other foreign entities are acquiring an interest in the house (unless the third party is a nominee, protected person, or another spousal unit that also meets the NRST spousal exemption criteria). All transferees must certify that they will occupy the property as their principal residence. "Spouse" means spouse as defined in section 29 of the Family Law Act. This includes either of two persons who are married to each other, or who are not married to each other and who have cohabited, continuously for a period of not less than three years, or in a relationship of some permanence, if they are the natural or adoptive parents of a child.

My spouse and I are buying a house in Kitchener. I am a citizen of Canada. She is not a citizen or a permanent resident of Canada. My brother is buying the property with us, so all three of us are on title. Do we have to pay NRST?

NRST is not payable on the transaction if your brother is a Canadian citizen, a permanent resident of Canada, a nominee under the Ontario Immigrant Nominee Program, or a person conferred “refugee protection” under section 95 of the Immigration and Refugee Protection Act (Canada). NRST is payable if your brother does not fall into one of the four scenarios listed above. Although there is an exemption for spouses if one of the spouses is a Canadian citizen, permanent resident, nominee or refugee, this exemption does not apply if the spouses purchase the property with a third party who does not fall into one of the four scenarios listed above. All transferees must certify that they will occupy the property as their principal residence.

My business partner and I are buying a triplex in Hamilton. I am a permanent resident of Canada. She is not a citizen or a permanent resident of Canada. She is not my spouse. Does she have to pay NRST?

NRST is payable on the purchase by both of you and calculated on the full value of the consideration for the triplex. However, the purchase may be exempt from NRST if your business partner becomes a nominee or a protected person prior to the date of purchase.

I am buying a house in Mississauga and I am not a Canadian citizen or a permanent resident of Canada. I have applied to be a permanent resident, and hope to complete that process in a year. Do I have to pay the NRST?

If you are not a permanent resident of Canada at the time your deal closes, you must pay the NRST. If you become a permanent resident or citizen of Canada within four years from the date of closing the deal, you may apply for a rebate of the NRST. In order to be eligible for the rebate, you must exclusively hold the property, or hold the property exclusively with your spouse, and the property must have been used as your (and if applicable your spouse's) principal residence for the duration of the period from within 60 days of the date of closing the deal to the day you apply for the rebate. You have 90 days from the date of becoming a permanent resident to apply for the rebate.

My daughter and I are not citizens of Canada or permanent residents of Canada. My daughter will be attending university and she wants to buy a home in Toronto to live in while she attends the university. Does she have to pay the NRST?

The NRST will be payable on the purchase of the home. She may apply for a rebate of the NRST once the following conditions are met: the home must be purchased only by your daughter (or your daughter and her spouse, if applicable) neither you nor anyone else has any beneficial interest in the home she is enrolled as a full‑time student for a continuous period of at least two years in an “approved institution” (as outlined in Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario, and the house is occupied as her principal residence within 60 days after the date of the purchase or acquisition, for the two year period set out above. If she meets all of the requirements listed above, an application for this rebate must be made within four years after the date of purchase or acquisition.

I am buying a house in Barrie, while I have a full‑time job. I am not a Canadian citizen or a permanent resident of Canada. Do I have to pay NRST?

Yes, you will have to pay the NRST. You may be eligible for a rebate of the NRST if you legally work full‑time in Ontario for a continuous period of one year from the date of purchase or acquisition. In order to be eligible for the rebate, you must exclusively hold the property, or hold the property exclusively with your spouse, and the property must have been used as your (and if applicable your spouse's) principal residence 60 days after the date of the purchase or acquisition for the duration of the year.

What do I do if I registered without prepaying the NRST?

Penalty and interest provisions will apply to the non‑payment of the NRST. The MOF has a Voluntary Disclosure Policy that states that if you voluntarily report and pay unpaid tax, with interest, the ministry will not impose a penalty on you. All documentation must be provided along with the voluntary reporting and payment of NRST.

If MOF has not finished processing my prepayment of NRST by the closing date, how do I close my deal?

For closing after December 29, 2017, Teraview will accept payments of NRST. For pre-payments of NRST and LTT, we suggest that the request to pre‑pay the NRST and LTT be submitted with all required documentation a minimum of five business days prior to the closing of the deal.

If I prepay the NRST and LTT, but my deal does not close, can I get my money back?

If the deal did not close because it is not going to be completed, MOF will refund the money paid. However, along with all the required documentation to process a refund request, MOF also requires a signed mutual release proving that the deal is at an end. If the deal has not closed and the agreement has been amended such that the closing date has been extended, the MOF will not issue a refund.

My client is a landed immigrant of Canada. Is he subject to the NRST when buying a home in Mississauga?

The term “Landed Immigrant” is an outdated term that is no longer used by Immigration, Refugees and Citizenship Canada. You will have to confirm with your client whether or not he is a permanent resident of Canada.

In which specific geographic regions are transfers subject to the NRST?

Transactions within the Greater Golden Horseshoe Region are subject to NRST. The Greater Golden Horseshoe Region contains the following areas: Land Registry Office (LRO) LRO Number LRO Location Regions, Counties and Municipalities Brant LRO 2 Brantford The County of Brant and the City of Brantford Dufferin LRO 7 Orangeville The County of Dufferin Durham LRO 40 Whitby The Regional Municipality of Durham Haldimand LRO 18 Cayuga Haldimand County Halton LRO 20 Milton The Regional Municipality of Halton Niagara North LRO 30 St. Catharines The Regional Municipality of Niagara Niagara South LRO 59 St. Catharines The Regional Municipality of Niagara Northumberland LRO 39 Cobourg The County of Northumberland Peel LRO 43 Brampton The Regional Municipality of Peel Peterborough LRO 45 Peterborough The County of Peterborough and City of Peterborough Simcoe LRO 51 Barrie The County of Simcoe, the City of Barrie, and the City of Orillia Toronto LRO 80 Toronto The City of Toronto Victoria LRO 57 Lindsay The City of Kawartha Lakes Waterloo LRO 58 Kitchener The Regional Municipality of Waterloo Wellington LRO 61 Guelph The County of Wellington and the City of Guelph Wentworth LRO 62 Hamilton The City of Hamilton York LRO 65 Aurora The Regional Municipality of York When will the NRST statement be a mandatory part of the transfer form? If NRST is payable, transfers without completed NRST statements will not be accepted for registration. If NRST is not payable, until December 29, 2017 , registrations may be completed without the completion of the NRST statements. Effective December 30, 2017 , transfers without completed NRST statements will not be accepted for registration.

How will the audit process work?

The Ministry's authority to audit for provincial LTT liability (including liability for NRST) is set out in section 10 of the Land Transfer Tax Act. Refer to the general information about ministry audits. Are non‑share capital corporations such as Condominiums or Co‑operatives subject to NRST? Yes, if the transferee is a foreign corporation that acquires land which contains at least one and not more than six single family residences in the Greater Golden Horseshoe Region.

Are Canadian citizens who are outside of Canada for more than 183 days, i.e. snow birds, subject to the NRST?

A Canadian citizen would not generally be subject to the NRST even if the individual is not living in Canada.

Are assignors subject to the NRST?

The NRST would not apply to an assignor if the assignor does not acquire a beneficial interest in the land for the purposes of the Land Transfer Tax Act.

I entered into an Agreement of Purchase and Sale before April 21, 2017. The Agreement is being assigned after April 20, 2017, does the NRST apply?

If the Agreement of Purchase and Sale is assigned after April 20, 2017, the NRST would apply.

If an Agreement of Purchase and Sale is entered into after April 20, 2017, by a foreign entity and subsequently assigned to a Canadian citizen or permanent resident of Canada does NRST have to be paid by the Canadian citizen or permanent resident?

The Canadian citizen or permanent resident of Canada who acquired the assignment would not be subject to the NRST, unless he or she is a taxable trustee to which the NRST applies.

I am buying a property that has both residential and non‑residential land. How do I calculate the apportionment of consideration that is attributable to residential land (subject to NRST) and non‑residential land (not subject to NRST)?

A reasonable self‑assessment is required by taxpayers in apportioning the value of the consideration for the purposes of the NRST. The apportionment would be based on the value of the residential land as compared to the non‑residential land, not the square footage of the two.

In a new home purchase how is the value of the consideration to which NRST applies determined?

The value of the consideration for NRST purposes will be determined in accordance with the existing provisions of the Land Transfer Tax Act.

I would like to authorize a representative to pay the NRST on my behalf. How do I do this?

The Authorizing or Cancelling a Representative form allows you to authorize the Ministry of Finance to deal with another individual (such as your spouse, other family member, accountant, tax consultant or solicitor) as your representative for Ontario tax or program matters.

How should Part 1 of the Authorizing or Cancelling a Representative form be completed in order to authorize payment of the NRST by a representative?

The box next to the Land Transfer Tax Act should be chosen.

Will Part 1 of the Authorizing or Cancelling a Representative form be updated to reflect the appropriate legislation under which the NRST is being paid?

No, the NRST is incorporated into the Land Transfer Tax Act, therefore Part 1 of the form does not need to be updated.

What are the appropriate account or reference number(s) referred to in Part 1 of the Authorizing or Cancelling a Representative form?

This is the account number or reference number assigned by the Ministry of Finance. If the ministry has not provided an account number or reference number to the client who is completing the Authorizing or Cancelling a Representative form, then the field for the account or reference number will remain blank.

How should Part 2 of the Authorizing or Cancelling a Representative form be completed so that the Scope of Authorization is limited to the payment of land transfer tax and the NRST?

If the client wants the representative to act only with respect to LTT, which includes NRST, the client selects the box Only the matters specified below. Then the client is to select the box Other and write the text Payment of LTT and NRST.

Can I pay NRST by couriering funds to Oshawa or do I have to pay in person?

The NRST can be paid to the Ministry of Finance in Oshawa by courier, mail or in person. Please refer to the above section, entitled How to pre-pay the Land Transfer Tax and the NRST to the MOF. After December 29, 2017, Teraview will accept payment of NRST at the time of registration. For paper registrations on which NRST is payable, payment of NRST and LTT must continue to be made at the Ministry of Finance.

I am purchasing a property subject to the municipal land transfer tax. Can I pay all of the required land transfer tax at the Ministry of Finance in Oshawa?

The Ministry of Finance in Oshawa does not collect municipal land transfer tax on behalf of the City of Toronto. Both the general provincial LTT and the NRST can be paid to the Ministry of Finance in Oshawa by courier, mail or in person. For further payment details please refer to the above section entitled How to pre-pay the Land Transfer Tax and the NRST to the MOF.