Understanding the Non-Resident Speculation Tax
in Ontario & British
Columbia
01
If you’re new in Canada, a foreign national or entity looking to buy a property in Ontario or British Columbia, you’ll likely encounter the acronym NRST—the Non‑Resident Speculation Tax. This extra tax applies to certain residential property purchases made by non-residents, and it can significantly increase your upfront costs. Don’t worry—this page will break it down step by step to empower you with knowledge and confidence. Ready to learn? Let’s go!
What Is the NRST – Non-Resident Speculation Tax?
The NRST is a provincial tax designed to cool overheated housing markets by discouraging speculation from foreign buyers. Although technically separate in each province, the term “NRST” is often used broadly to encompass both Ontario and B.C. rules. It applies to purchases by:
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Foreign nationals (non-Canadians/non–permanent residents)
-
Foreign corporations
-
Taxable trustees acting on behalf of foreign entities
If you fit any of those categories, budget carefully—because this tax hits hard.
How the NRST Works in Ontario
NRST Rates & Regions
Ontario introduced the NRST in April 2017 at 15% for the Greater Golden Horseshoe Area. It expanded province-wide in March 2022 and rose to 20%, then to 25% effective October 25, 2022
For example, buying a $1 million home could trigger $250,000 in NRST—a massive hit.
Who Pays the NRST?
If any buyer on title is a foreign national, the entire purchase incurs the NRST—no proratingThat means even if you co‑own with a Canadian, you’re still on the hook for the full amount, joint and severally responsible.
Eligible Properties
The NRST applies to residential properties with up to six units—single-family homes, condos, duplexes to sixplexes—generally purchased for residency, not commercial rental
02
Exemptions & Rebates in Ontario
Ontario does provide relief in some cases:
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Spousal exemption: If the foreign buyer is married to a Canadian citizen or permanent resident, they may be exempt
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Permanent residence rebate: If you become a permanent resident within four years, you may still qualify for a full NRST rebate
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Nominees/refugees: Eligible Provincial Nominees and protected persons may be exempt from NRST
03
Proportionate Share & Exemptions
The NRST applies based on your share of ownership. For instance, if you own 70% of a property, you’ll pay 20% on 70% of the value
Common exemptions include:
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Status as a BC Provincial Nominee
-
Being a refugee
-
Buying as part of a Canadian-controlled partnership
Refunds may be available if you gain PR status within one year of purchase
How the NRST Works
in British Columbia
Tax Rate & Area Coverage
British Columbia’s version of the NRST, dubbed the Foreign Buyer’s Tax, applies to non-residents purchasing residential property in certain regions. The rate is 20%, and it’s added to the standard Property Transfer Tax. Affected areas include Metro Vancouver, Fraser Valley, Capital RD (Victoria), Nanaimo, and Central Okanagan
Who Pays the NRST?
If any buyer on title is a foreign national, the entire purchase incurs the NRST—no proratingThat means even if you co‑own with a Canadian, you’re still on the hook for the full amount, joint and severally responsible.
Eligible Properties
The NRST applies to residential properties with up to six units—single-family homes, condos, duplexes to sixplexes—generally purchased for residency, not commercial rental
Tips for Non‑Residents Facing the NRST
-
Don’t skip pre-approval: Banking with NRST in mind is key.
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Consider joint ownership structures: Spousal or nominee exemptions can save you tens of thousands.
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Track status milestones: Residency timelines matter—convert quickly to qualify for rebates.
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Seek expert advice: NRST rules are complex—get help to avoid missteps.
FAQ Section
Q1: What areas do Ontario’s NRST rules cover?
The provincial NRST applies province-wide as of March 30, 2022, no longer limited to the Greater Golden Horseshoe
Q2: Who is considered a foreign national for NRST purposes?
Anyone not a Canadian citizen or permanent resident, including foreign corporations and taxable trustees
Q3: How much is the NRST in Ontario vs B.C.?
-
Ontario: 25%
-
British Columbia: 20%
Q4: Can non-residents get a refund?
Yes—Ontario rebates for new PR within four years; BC refunds if PR status is secured within one year .
Q5: Are commercial or rental properties exempt?
In Ontario and BC, multi-unit rental buildings (more than six units) are often exempt from the NRST
✅ Your Next Steps with the NRST
- Contact a mortgage professional to assess financing plus NRST impact.
- Arrange legal counsel specializing in real estate and NRST.
- Collect supporting documents (citizenship, PR or nominee records, work visas).
- Plan for payment—NRST is due at closing, separate from your mortgage.
- Apply for rebates promptly if you become a PR, refugee, or nominee.
🚀 Ready to Buy? Let’s Talk.
Navigating the NRST as a non-resident buyer can feel overwhelming—but you don’t have to go through it alone. I’m here to answer your questions, guide you through exemptions, rebates, and legal requirements, and help you make smart decisions as you invest in Ontario or B.C.
📲 Contact me today for a free consultation tailored to your needs. Let’s turn your Canadian real estate dreams into a reality—without surprises.
Disclosure:
This guide provides a comprehensive overview based on the most recent NRST rules in Ontario and B.C. For updates beyond June 2025, please verify with official provincial sources.
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