Foreign Buyers Tax is set to rise in Ontario effective October 25, 2022.
The Foreign Buyer's Tax or also called the Non-Resident Speculation Tax (or NRST for short) rate rises to 25 per cent.
The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by foreign nationals (meaning those who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees.
The NRST applies in addition to the general Land Transfer Tax (LTT) in Ontario. To calculate the land transfer tax check the Property416.com website and look under Calculators.
The Ontario government recognizes that some purchasers may have already signed agreements of purchase and sale that do not close for a few months or longer. There are transitional provisions available for certain transfers of land conveyed pursuant to agreements entered into on or before October 24, 2022.
For more information, visit the Government of Ontario website.
Source: RECO - Real Estate Council of Ontario