With the recent release of the 2024 Ontario budget, the province is making some changes to the Non-Resident Speculation Tax (NRST). The NRST is the tax on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are not Canadian citizens or permanent residents of Canada or by foreign corporations or taxable trustees.
Effective March 27, 2024, the following changes include:
The rebate application deadline for foreign nationals who become permanent residents of Canada has been extended from 90 to 180 days.
The NRST will now apply to the standalone purchase of a parking space or storage unit. Previously this only applied if the spaces were coupled with the purchase of a residential unit.
Changes were made to the qualifying rules for rebates and exemptions under the NRST:
A purchaser must intend to occupy the home as their principal residence within 60 days of their purchase date.
A purchaser must occupy the home as their principal residence until a rebate application is filed to remain eligible for a rebate.
Enrolment or Employment for the international student/worker rebates must begin within 30 days of home purchase. (The rebates have been eliminated but transitional provisions allow applications until March 31, 2025).
Spousal status must be obtained on or before the date of home purchase to be eligible for the exemption or rebate.
Exemptions and rebates are not available if a foreign entity who is not on title acquires a beneficial interest in the home.
View the Ministry of Finance Letter on Changes to the NRST for more details. For further information on the Non-Resident Speculation Tax, click here.
