Ontario has increased its non-resident speculation tax (NRST) that applies to certain foreign buyers of Ontario homes. The province has increased its NRST to 25% (from 20%) of the purchase price for the transferred property, as of October 25, 2022. Note that the NRST is in addition to Ontario’s land transfer tax that generally applies to the purchase of residential properties. The NRST applies to all residential properties across Ontario that are purchased by foreign nationals, foreign corporations and taxable trustees. The province has also provided a transitional rule for taxpayers that undertake certain property transfers for which they entered into an agreement of purchase and sale on or before October 24, 2022.

Note that the increased NRST rate is payable from October 25, 2022, even though Ontario says its electronic land registration system (which collects the NRST) will not reflect the rate increase until October 28, 2022. The province has provided processing instructions to make the payment during this transitional period on its website.


Ontario’s NRST is payable where a foreign national, foreign corporation or a taxable trustee (i.e., a trustee of a trust with either a foreign trustee or a foreign beneficiary) purchases or acquires designated land in Ontario. The tax is now 25% of the value of the consideration for the designated land. Designated land is generally land that contains at least one and not more than six single family residences.

The NRST does not apply to a trustee of the following types of trusts as defined in the federal Income Tax Act:

  • A mutual fund trust
  • A real estate investment trust (REIT)
  • A specified investment flow-through trust (SIFT trust).

Ontario exempts the following individuals from the tax, if certain conditions are met:

  • Protected persons under the Immigration and Refugee Protection Act (Canada)
  • Nominees under the Ontario Immigrant Nominee Program
  • Purchasers who jointly acquire the designated land with a spouse who is a Canadian citizen, permanent resident of Canada, protected person or nominee.

For property transfers that occur after March 29, 2022, NRST rebates are available for foreign nationals who become permanent residents of Canada within four years of purchasing or acquiring their home, where certain conditions are met.

For more information, contact your KPMG adviser.

Information is current to October 24, 2022. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500