It depends. The Province of Ontario has implemented a Non-Resident Speculation Tax (NRST), often referred to as a foreign buyer tax. This tax imposes a 20% tax on top of the purchase price for purchases of residential real estate in the greater Toronto region if the purchaser is not either (1) a Canadian citizen, or (2) a permanent resident of Canada (i.e., you have a Permanent Resident card). In other words, if you are a Canadian citizen or a permanent resident of Canada, the NRST will not apply to your purchase. However, if you are not a Canadian citizen or a permanent resident of Canada, you will need to pay a tax equal to 15% of the purchase price at the time of closing. The federal government of Canada has also recently announced a that they will ban foreign money from purchasing a non-recreational, residential property in Canada for the next two years.
- December 6th, 2019
- Posted in: