Parvasi Media News

To crack down on Foreign Real-Estate investors, Ontario Govt has increased the Non-Resident Speculation Tax rate to 20 per cent provincewide which will effective March 30, 2022.

Currently, the Non-Resident Speculation Tax rate is 15 per cent and only applies to homes purchased in the Greater Golden Horseshoe Region by foreign nationals, foreign corporations, and taxable trustees.

The Government has claimed that it is eliminating loopholes to support Ontarians who are trying to buy their first home by focusing NRST relief eligibility to only newcomers who want to settle in the province for long-term.

Rebates for new permanent residents of Canada and related exemptions will be available to eligible newcomers to ensure Ontario continues to be welcoming to new Canadians. This includes an opportunity for foreign nationals studying and working in Ontario who become permanent residents of Canada to apply for the rebate.

Peter Bethlenfalvy, Minister of Finance said, “Our government is adopting the most comprehensive Non-Resident Speculation Tax in the country. Our government is working to increase supply and help keep costs low for Ontario families and homebuyers, not foreign speculators looking to turn a quick profit.”

Ontario is also working with municipalities that are looking to establish a Vacant Home Tax, which is another tool to increase the supply of housing. The authority for municipalities to implement such taxes exists in the Municipal Act. The City of Toronto has introduced a Vacant Home tax, and a number of other municipalities, including Ottawa, are also preparing to implement similar taxes.

Ontario will explore ways to discourage construction slowdowns that may be artificially driving up prices of new homes for Ontario families through land speculation.