Canada: New 10% tax on foreign purchasers of residential properties (Toronto)
The City of Toronto implemented a 10% tax on the purchase of residential properties by foreign entities effective January 1, 2025.
The City of Toronto implemented a 10% tax on the purchase of residential properties by foreign entities (including individuals and corporations) that do not reside in Canada effective January 1, 2025.
The Municipal Non-Resident Speculation Tax (MNRST) is payable on the closing date, meaning the same day that funds are exchanged and title to the property is transferred.
The new measure adds to the existing provincial and federal initiatives. In 2017, the Ontario government introduced the Non-Resident Speculation Tax (NRST) that imposes a 25% tax on any foreign national purchasing a home in Ontario. Later, in 2022, the Canadian government introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which imposes a ban on foreign buyers from purchasing residential homes in certain parts of Canada. Currently, the federal government ban on foreign buyers purchasing homes in Canada is set to expire on January 1, 2027.
Read an April 2025 report prepared by the KPMG member firm in Canada