Non-Resident Sales Tax and Citizens

(Ontario)

Question:

If someone is a Canadian Citizen but a non-resident.

Do they still pay foreign buyer land transfer tax of 15%? Or it doesn’t apply? I’m confused because they would still be a non-resident, but they are a Canadian citizen.

Answer:

No. The NRST is a tax on the purchase residential property in the Golden Horseshoe by individuals who are:

1) not citizens, or

2) not permanent residents.

The Non-Resident Sales Tax (NRST) is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The intention of the tax is to prevent foreign investors from buying properties and driving up the prices of residential units in populated areas.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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