Priscilla invited lawyer Han Zhang who owns his law firm and is an expert on taxation to explain in detail the foreign buyer’s non-residence speculation tax to everyone.
15% ->20% Change
Mr. Zhang informed the audience during his interview with Priscilla that on March 30th, 2022, the new rule goes into effect for all Ontario regions, that the foreign buyer’s non-residence speculation tax goes from 15% of the purchase price to 20% the purchase price. He warns, that if the contract is signed even on the 29th of March, and the closing date is after, one could still enjoy 5% less taxation according to NRST.
Expansion from Golden Horseshoe to All of Ontario
From the East of Peterborough to the west of Waterloo, to the North of York region. This tax will cover all of Ontario.
Who are Eligible for the NRST Rebate?
Previously, 3 different types of people could get this tax back in full.
1) Anyone who became a permanent resident or a citizen of Canada in less than 4 years
2) Full-time student in Ontario for 2 full years
3) Working full-time in Ontario for more than 1 year
Now, only the first group could enjoy the this tax rebate.
Who IS a Foreigner?
As long as the date you are going to obtain keys for the house/condo you bought, you already obtained your PR status or Canadian citizenship, then this regulation does not apply to you. So don’t worry about what status you are in when you’re signing the contract to purchase real estate.
Who doesn’t need to pay?
1. If you’re a foreigner and purchased a piece of commercial real estate, or a piece of empty land for development, as long as it’s not residential, you will not be subjected to this tax.
2. If in a married couple or common-law couple, one person is a Canadian PR or citizen, the other a foreigner. As long as both of their names go onto the title, then they don’t need to pay this tax. Do keep in mind, that one must only use the house for their residential usage, and not use it as a rental property.
3. Those lucky few who are nominated under the Ontario immigrant Nominee Program are exempt from the NRST. However this is not applicable for Quebec or other provincial nominees.
Reference:
https://www.ontario.ca/document/land-transfer-tax/non-resident-speculation-tax
Buying and Selling Toronto Real Estate
Whether you are buying your first condo, or selling a single-family home, Team Priscilla Han Realty can help you.
We are proud to serve the whole Greater Toronto Area (GTA), including but not limited to the CIty of Toronto, North York, Markham, Richmond Hill, Vaughan, Aurora, Scarborough, Mississauga, Oakville , Pickering, and Oshawa.
We help research properties that are best tailored for home buyers, providing them with instant notification of newly available properties, access to exclusive deals that are not on the MLS.
For property sellers, we have a database of thousands of buyers-in-wait, 20,000+ combined subscribers on YouTube TouTiao. Our "Your Home Sold Guaranteed, or I'll Buy It" program provides seller with a worry-free selling process. Our professional staging, photography, and videography service help sellers present their property at their best and maximize exposure to potential buyers!
Reach out to us at prishanrealty@gmail.com, or call/text: 647-360-8963 for a free consultation or home evaluation. Visit our website, https://priscillahanrealty.com for more up to date videos, blogs, and listings.
Post a comment