Changes to Rebates for Foreign Homebuyer Tax in Ontario

[Trevor Kezwer]

Hi All,

I am a tax lawyer, and here is an update on the foreign homebuyer tax rebates in Ontario, Canada.

As of March 30, 2022, the Non-Resident Speculation Tax (NRST) rate is 20 per cent, and applies to residential property purchases which contain at least one and not more than six single family residences.

The tax applies to anywhere in Ontario if one of the purchasers is a foreign national, a foreign corporation, or a taxable trustee. There are exemptions available in certain specific situations.

The available rebates have also been modified. The International Student and the Foreign National Working in Ontario rebates are no longer available. This applies to any purchase agreements or assignment agreements which are entered into beginning on March 30, 2022.

The Permanent Resident rebate is still available. Applications for this rebate must be submitted within 90 days of becoming a permanent resident of Canada. The 90 day time period begins when permanent resident status is issued and not when an individual receives their permanent resident card.

If you need to apply for the International Student and Foreign National Working in Ontario rebates, the final deadline to submit an application is the earlier of March 31, 2025, or within 4 years after the NRST became payable. I assist clients in applying for these rebates.

Feel free to reach out if you have any questions. Thank you.