Ontario Cracking Down on Foreign Real-Estate Speculation with the Most Comprehensive Non-Resident Speculation Tax in Canada
As part of the commitment to tackle Ontario’s housing crisis by prioritizing Ontario families and homebuyers, not foreign speculators looking to turn a quick profit, Minister Bethlenfalvy announced that the government is increasing the Non-Resident Speculation Tax rate to 20 per cent, closing loopholes to fight tax avoidance and expanding the tax to apply provincewide effective March 30, 2022.
The changes made to establish the tax as the most comprehensive in Canada were announced as the government prepares to unveil the next components of its housing supply action plan designed to build more homes in Ontario.
Currently, the Non-Resident Speculation Tax rate is 15 per cent and only applies to homes purchased in the Greater Golden Horseshoe Region by foreign nationals, foreign corporations and taxable trustees. Increasing the tax rate to 20 per cent and expanding the tax to apply provincewide will strengthen efforts to deter non-resident investors from speculating on Ontario’s housing market and help make home ownership more attainable for Ontario residents.
Rebates for new permanent residents of Canada and related exemptions will be available to eligible newcomers to ensure Ontario continues to be welcoming to new Canadians. This includes an opportunity for foreign nationals studying and working in Ontario who become permanent residents of Canada to apply for the rebate.
The government is also confirming that we will work with municipalities that are looking to establish a Vacant Home Tax, which is another tool to increase the supply of housing and consult on potential measures to address concerns related to land speculation.
Under the leadership of Minister Clark and Premier Ford, the government will increase the supply of housing to help keep costs low for Ontario families. We have a plan to get it done.