Non-resident Speculation Tax Rebate
The Non-Resident Speculation Tax (NRST) is a 15% tax introduced by the Ontario Ministry of Finance on April 21, 2017, targeting foreign buyers (both individuals and companies) purchasing properties in Ontario. As this tax is designed to deter speculative investments, buyers whose intentions are recognized as non-speculative, such as purchasing for self-use, may qualify for a refund. Notably, the NRST is collected by the Ontario Ministry of Finance rather than the Canada Revenue Agency, and its definition of a foreign buyer is based on immigration status—specifically, individuals without Canadian permanent residency or citizenship, or companies not registered in Canada.
In the past three years, the government has revised NRST regulations several times:
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For purchase agreements signed before March 30, 2022, buyers of properties in the Greater Golden Horseshoe Region were required to pay 15% NRST. Refunds are available for those who obtain Canadian permanent residency or meet eligibility as work or study permit holders within four years.
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For purchase agreements signed between March 30, 2022, and October 24, 2022, buyers of properties anywhere in Ontario were required to pay 20% NRST. Refunds are available only for those who obtain Canadian permanent residency within four years.
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For purchase agreements signed on or after October 25, 2022, buyers of properties anywhere in Ontario must pay 25% NRST. Refunds are available only for those who obtain Canadian permanent residency within four years.
You may qualify for an NRST refund if you meet any of the following conditions:
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For students:
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Agreements signed before March 30, 2022
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You held a valid study permit within 30 days of the property closing date.
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You enrolled full-time for two consecutive years at an Ontario-recognized educational institution.
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Submit your application by March 31, 2025, and within four years of the property purchase.
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For foreign nationals as workers in Ontario:
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​Agreements signed before March 30, 2022:
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You worked full-time (at least 30 hours per week or 1,560 hours per year) for one year.
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Submit your application by March 31, 2025, and within four years of the property purchase.
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You held a valid work permit within 30 days of the property closing date.
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For permanent residents:
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You obtained Canadian permanent residency within four years of the property closing date.
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You applied for the refund within 90 days of obtaining permanent residency.
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Reference:
Additional points to note:
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The title (ownership) of the property must be in the name of the buyer alone or with their spouse. If other individuals, such as parents assisting with the mortgage, are added to the deed, obtaining an NRST refund becomes difficult.
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The property must be occupied as a principal residence within 60 days of the final closing date, and sufficient evidence of occupancy must be provided (e.g., online purchase receipts, personal bills, bank statements, phone bills, or updated driver’s licenses). Utility, property tax bills, or water bills are insufficient as proof, as they can be mailed to the address regardless of whether the property is rented.
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For pre-construction homes, if the occupancy date precedes the final closing date, the final closing date is used for tax calculations.
Since 2019, Sheng Qian Professional Corp. has handled numerous NRST refund cases and engaged extensively with Ontario Ministry of Finance officials. We have successfully assisted clients, even in cases where insufficient proof of occupancy initially resulted in denied applications. By supplementing missing evidence and presenting well-supported appeals, we have secured tens of thousands of dollars in refunds for our clients, sometimes over several years of persistence.
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If you have further questions about NRST or need assistance, feel free to contact us.