Non-Resident Speculation Tax

The Non‑Resident Speculation Tax (NRST) is a 15 per cent tax on the purchase by a foreign national of a residential property located in an area of Central-East Ontario called the Greater Golden Horseshoe Region (This area comprises the City of Toronto, Peel Region, York Region and Durham Region, among others). The tax is imposed on the purchase of property by individuals who are not citizens or permanent residents of Canada or by foreign corporations and taxable trustees.

In some circumstances the purchaser can apply for a full Rebate of the NRST tax paid. Among the circumstances which may give rise to a right to request a Rebate are: 1) where the foreign national became a permanent resident of Canada within four years after the transfer of ownership; 2)  where the foreign national has been enrolled full-time in an approved educational institution in Ontario for a continuous period of at least two years after the transfer of ownership; 3)  where the foreign national has been employed full-time in Ontario under a valid work permit for at least a continuous period of one year after the transfer of ownership.

Cervantes Law Firm has significant experience filing Rebate Applications with the Ministry of Finance of Ontario and submitting Objections to Statements of Disallowance. Cervantes Law Firm is also one of the few law firms having actual experience appealing Statements of Disallowance at the Ontario Superior Court of Justice.

Depending on your situation, we may consider offering a fee arrangement that is based on the outcome of the Rebate Application, Objection or Appeal.

Please do not hesitate to contact us for a consultation.