It applies to typical residential properties – land with up to three single-family dwellings (e.g. houses, condos, duplexes/triplexes). Larger multi-unit buildings (more than 3 units), vacant land with no dwelling, and purely commercial or industrial properties are not subject to NRST.

Any individual who is not a Canadian citizen or a permanent resident of Canada. In practice, this includes anyone on a temporary status (such as international students, work permit holders, visitors) – until you get Canadian PR or citizenship, you are a “foreign national” for NRST purposes.

It means a trust (and its trustee) that is treated as a foreign buyer for NRST. If any trustee or beneficiary of a trust is a foreign entity (foreign national or foreign corporation), then the trust is considered a foreign purchaser and NRST will apply to its property purchase.

Yes. If any one of the purchasers is a foreign entity, the 25% NRST is charged on the entire property price (not just the foreign buyer’s share). All co-buyers are jointly liable for the full NRST amount in that scenario (unless a specific exemption applies, such as the spousal exemption).

Usually yes. International students and temporary foreign workers count as foreign buyers (unless they qualify for an exemption like being a provincial nominee or buying with a Canadian spouse) and must pay the 25% NRST when purchasing a home. They can later apply for a full refund if they become permanent residents within the required timeframe (currently 4 years).

No. Canadian citizens and permanent residents are exempt from NRST regardless of where they live. The NRST is based on your citizenship/PR status, not your residency, so even a Canadian expat living overseas can buy property in Ontario without paying this foreign-buyer tax.

It is 25% of the purchase price as of 2025. Ontario introduced the NRST at 15% in 2017 (initially just in the Toronto-area region), then expanded it province-wide and raised it to 20%, and later to 25% by late 2022. 25% is the current rate (and in Toronto there’s an additional separate 10% city tax on top).

It now applies province-wide (everywhere in Ontario). When first launched in 2017, it only applied to the Greater Golden Horseshoe region, but since March 30, 2022 Ontario expanded the NRST to the entire province (along with increasing the rate). So any residential purchase by a foreign buyer anywhere in Ontario can incur NRST (with Toronto having an extra municipal tax as well).

Yes, there were transitional rules based on contract dates. If a foreign buyer’s purchase agreement was firm before certain cutoff dates, older rates or exemptions apply: for example, deals signed before April 21, 2017 (in the original affected region) or before March 30, 2022 (outside that region) were not subject to the newer NRST or rates. Contracts signed during interim periods paid the then-current rate (15% or 20%), while any agreement signed after October 24, 2022 is subject to the full 25%. In short, the tax rate is “grandfathered” according to the date the purchase agreement was signed.

If a foreign party is added to the deal after the original contract date, the transaction will lose any grandfathered status and be subject to the current NRST rate. Ontario’s rules prevent avoiding the tax by bringing in a foreign buyer later – if you assign the agreement or add a foreign buyer before closing, the full 25% NRST will apply at closing (even if the deal initially might have qualified for an earlier lower rate or exemption).

Some can, under exceptions. The federal ban (effective Jan 1, 2023 to the end of 2024, now extended to 2027) prohibits many foreign nationals from buying residential property in Canada, but it has several exemptions (e.g. certain work permit holders can buy one property, international students meeting criteria, multi-unit properties with 4+ units aren’t covered, etc.). So if a foreign buyer qualifies under an exception to the federal ban (or once the ban expires), they can still purchase in Ontario – and if they do, Ontario’s NRST will apply as normal (unless they fit a provincial exemption). If the federal law outright forbids the purchase, then they simply cannot buy (and NRST doesn’t come into play).

It’s a one-time tax charged on the transaction when you buy the property. NRST is paid at closing alongside land transfer taxes and is not an annual property tax. (After purchase, foreign owners are subject only to regular property taxes or any separate vacancy/underused housing taxes, but there’s no yearly NRST on the property once acquired.)

Ontario provides a few narrow exemptions at the time of purchase for certain foreign buyers. The main NRST exemptions are: (1) foreign nationals who are provincial nominees under the Ontario Immigrant Nominee Program (OINP), (2) foreign nationals with protected person status (refugees), and (3) the spousal exemption (a foreign buyer purchasing jointly with their Canadian citizen or PR spouse). If an exemption applies (and the buyers will use the home as a principal residence), the 25% tax is not charged at closing.

It’s an exemption for foreign buyers who are provincial nominees. If a foreign national has a valid OINP nomination for permanent residence (and is in the process of becoming a PR), they are exempt from NRST on a home purchase (provided they intend to reside in the property as their primary residence).

A foreign national who has protected person status (for example, someone officially recognized as a refugee or similar protection in Canada) is exempt from the NRST. As long as they have that status at the time of purchasing the home (and will use the property as a principal residence), they do not pay the 25% tax.

This exemption allows a foreign buyer to avoid NRST if they purchase a home jointly with their spouse who is Canadian or a permanent resident. In other words, if a foreign individual and their Canadian (or Canadian PR) spouse buy a home together as their principal residence, the transaction is exempt from NRST. (Common-law spouses also qualify as “spouses” under this rule.)

Yes. Ontario’s NRST spousal exemption treats common-law partners the same as married spouses. As long as the couple has lived together in a marriage-like relationship for the required period (generally at least 3 years, or 1 year if they have a child together), a Canadian/PR and their foreign common-law partner can use the spousal exemption.

Yes – both the foreign spouse and the Canadian or PR spouse must be co-purchasers on the property title to claim the spousal exemption. The exemption only works for a joint purchase by the couple. (If only the Canadian spouse is listed on title, NRST isn’t charged because technically no foreign buyer is on title, but that scenario means the foreign spouse has no ownership until added later; to legitimately use the exemption, put both spouses on title at closing.)

No. The spousal exemption is only valid when the only foreign purchaser on title is the one married to a Canadian/PR. If you add any additional foreign buyer (besides that one foreign spouse), the conditions are broken and the exemption is lost – NRST will be charged on the purchase in that case.

Yes. All NRST exemptions require the buyers to intend to occupy the property as their principal residence. In fact, as of 2024, Ontario explicitly requires that if you claim an exemption (spousal, nominee, protected person), you must move into the home within 60 days of closing and use it as your primary residence, or else the exemption can be revoked.

No. The NRST exemptions (nominee, protected person, spousal) apply to individual buyers under specific personal circumstances. A corporation or a trust cannot have a “spouse” or immigration status, so foreign corporations and trusts have no exemptions available – they will owe NRST on any qualifying purchase.

No – your spouse must actually be a Canadian citizen or permanent resident at the time of purchase to get the spousal exemption. If your partner’s status is still pending or not obtained by the closing date, they would still be considered a foreign person for that transaction and the spousal exemption wouldn’t apply (in that case NRST would be charged, though you might later seek a rebate once status is gained).

Simply getting married to a Canadian after the fact does not entitle you to a refund of NRST. There is no rebate for marrying a Canadian later. The only way to recover NRST paid is if you (the foreign buyer) become a permanent resident within the allotted time and apply for the standard rebate – but marriage by itself isn’t a refund trigger.

A foreign buyer (or their foreign spouse) who paid NRST can get a rebate if they become a permanent resident of Canada within four years of the property purchase. They also must have used the home as their principal residence. In short, the typical eligible scenario is a foreign buyer who later obtains PR status (within 4 years) and lived in the home – that person can apply for the rebate.

Yes. You must have occupied the property as your principal residence in order to qualify for the rebate. The NRST rebate requires that the home was intended to be and actually used as your (and your family’s) primary residence during that period, rather than just an investment property.

Essentially, yes. The rebate is intended for cases where the foreign purchaser (and/or their spouse) becomes a PR. If the property was co-owned with another foreign buyer who did not become a PR, that typically disqualifies the rebate. In practice, to get the rebate, the only foreign parties on title should be the ones who have now obtained PR status (usually the individual buyer or a couple).

You must apply within 180 days (approximately 6 months) after obtaining permanent resident status. In other words, once you become a PR, you have 180 days to submit your NRST rebate application to Ontario’s Ministry of Finance.

By submitting an application to the Ontario Ministry of Finance. You’ll need to complete the NRST rebate application form and provide all required documentation (proof of your PR status, proof of occupancy, etc.). This is sent to the Ministry of Finance for review – if approved, they will issue the refund.

Typically you need to include: proof of permanent residency (such as your PR card or landing documents), evidence that the property was your principal residence (for example, utility bills or driver’s license showing that address, or a signed declaration), and documents from the purchase (like the statement of adjustments or land transfer tax affidavit). The application form will list the exact documents needed to demonstrate you meet all the criteria.

Processing times can vary, but expect it to take a few months. After you submit a complete rebate application, the Ministry of Finance will review it and, if approved, will issue the refund. It often takes several weeks to a few months for the rebate to be processed and the money returned.

Not anymore as a specific category. Ontario used to have rebate provisions for foreign students and workers (if they later stayed in the province for a certain time), but those programs were discontinued in March 2022. Now, the main path to get a rebate is to become a permanent resident within 4 years of purchase – just being a student or work-permit holder won’t qualify for a refund unless you obtain PR status in the allowed time.

No. The government will refund the NRST you paid (if you qualify), but they do not pay interest on that refunded amount. You’ll get back the principal amount of the tax, without any interest, regardless of how long the process takes.

It’s a special provision that lets the Ontario government (Minister of Finance) waive or refund the tax in extraordinary cases. In other words, under section 20 the Minister has the discretion to grant relief from NRST when the normal rules would cause undue hardship or there are special circumstances. This is a case-by-case “mercy” or fairness relief outside the standard exemptions and rebates.

There’s no fixed list, but it refers to unusual, equitable situations where strict application of the NRST would be unfair. Examples might include serious personal hardship or major illness that caused someone to miss the normal exemption or rebate criteria. Essentially, you have to show a compelling reason – beyond your control – why you couldn’t meet the standard requirements and thus deserve an exception.

Yes – there have been rare cases. Notably, in the Yavari case, a foreign buyer who just missed the PR rebate deadline appealed and was ultimately granted a refund through discretionary relief due to the exceptional circumstances (COVID). It shows that while difficult, it is possible to get NRST back if you present a very strong case for relief. However, such successes are uncommon; most people have to meet the regular rules to avoid the tax.

You must send a written request to the Ontario Ministry of Finance outlining your situation and why you believe it merits special relief. There isn’t a standard form for section 20 relief – typically you or your lawyer will write a detailed letter, include supporting documentation of your circumstances, and formally ask the Minister of Finance to exercise discretion to waive or refund the NRST. It’s a good idea to get legal help to prepare this request.

There is no formal appeal tribunal for a section 20 relief decision, because it’s purely discretionary. If your request is denied, you generally don’t have another avenue to contest it within the Ministry’s process. The only possible challenge would be a judicial review in court (arguing the decision was unreasonable), but that’s difficult and rarely pursued. In short, the Minister’s decision on discretionary relief is usually final, so you have essentially one chance to make your case.

It’s an additional municipal foreign-buyer tax imposed by the City of Toronto. The MNRST is a 10% tax on top of the purchase price for residential property in Toronto when the buyer is a foreign entity. (This is on top of the 25% provincial NRST, making Toronto’s combined foreign buyer tax 35%.)

Toronto’s MNRST took effect on January 1, 2025 at a rate of 10%. Any property transfer registered in the City of Toronto on or after that date is subject to this extra 10% tax if the purchaser is a foreign national, foreign corporation, or taxable trust. (The city approved it in 2024 to start in 2025.)

Yes. If you’re a foreign buyer purchasing in Toronto, you owe both taxes – the provincial 25% NRST and the municipal 10% MNRST – for a combined total of 35% of the purchase price. These stack on top of the regular Ontario and Toronto land transfer taxes that every buyer pays.

It targets the same type of properties as the NRST, but within Toronto. In practice, any residential property in the City of Toronto that has at least one and no more than six dwelling units will incur the 10% MNRST if a foreign buyer is involved. (This covers houses, townhomes up to a sixplex, condo units, etc. A building with more than 6 residential units, or a purely non-residential property, would not be subject to MNRST.) Note that only transfers registered on or after January 1, 2025 are affected – earlier deals aren’t retroactively taxed.

Any foreign buyer purchasing applicable residential property in Toronto must pay the 10% MNRST. The definitions of “foreign national,” “foreign corporation,” and “taxable trustee” are the same as under the provincial NRST. So, if the buyer is not a Canadian citizen/PR (or is a foreign-controlled company or trust), they will be charged the MNRST. Canadian citizens and PRs are exempt (and if a foreign buyer qualifies for a spousal exemption, then they wouldn’t pay the city tax either).

Toronto adopted the exact same exemptions as the NRST. That means if a purchase is exempt from the 25% NRST (for example, a Canadian and foreign spouse buying together, an OINP nominee, or a refugee, with the required principal residence intent), it is also exempt from the 10% MNRST. The city did not create any new or different exemptions – it mirrors the provincial rules, including the need to occupy the home within 60 days for those exemptions.

Yes. The spousal exemption covers both taxes. If a foreign national buys a Toronto home together with their Canadian (or PR) spouse and meets the exemption criteria, they will pay neither the 25% NRST nor the 10% MNRST on that purchase. Toronto’s policy is that qualifying for the provincial spousal exemption automatically grants exemption from the municipal tax as well.

Yes. Toronto offers a rebate for the 10% MNRST parallel to the provincial NRST rebate. If a foreign buyer paid the MNRST on a Toronto property and then becomes a Canadian permanent resident within four years of the purchase, they can apply to get the 10% city tax refunded. The conditions and deadlines (occupy the home as principal residence, apply within 180 days of obtaining PR, etc.) are aligned with the NRST rebate, so eligible buyers will get back both the provincial 25% and the Toronto 10% if they qualify.

No – Toronto didn’t add anything beyond the provincial requirements. The conditions to claim an exemption or rebate for the MNRST are the same as for NRST. For example, the buyers still must occupy the home as a principal residence within 60 days for an exemption, all co-buyers must meet the criteria, and the rebate deadlines (4 years to become PR, 180 days to apply) are identical. The city deliberately kept its rules consistent with Ontario’s.

It’s integrated with the existing process. At closing, your lawyer will claim a Toronto MNRST exemption in the land transfer tax affidavits (alongside the NRST exemption) if you qualify – this is done through the Teranet electronic system when registering the deed. For rebates, you generally apply through the Ontario Ministry of Finance using the NRST rebate application, and the system will handle the Toronto portion as well (the City of Toronto works with the province so that one application can cover both the 25% and 10% refunds). Essentially, you don’t need a separate procedure – the exemption is declared at purchase by your lawyer, and the rebate is requested via the same provincial form, which will trigger the refund of both taxes.

Not if the property is large or non-residential. The NRST is only imposed on land containing up to six (now effectively three) residential units. So, a small apartment building or multiplex (e.g. a triplex or fourplex) would be subject to NRST, but a large apartment building with 7+ units would not. Likewise, purely commercial or industrial land with no residential dwelling is not subject to NRST. (In summary, NRST targets typical housing purchases; big apartment complexes and property with no homes are outside its scope.)

The Ontario government will pursue the unpaid tax, with penalties. If a foreign buyer fails to pay NRST (for instance, by not disclosing their status), the Ministry of Finance can assess the tax later, add interest from the closing date, and apply hefty penalties (in serious cases, penalties up to 100% of the tax evaded). Making a false declaration is an offense, and the government can also place a lien on the property for unpaid NRST. In short, attempting to evade NRST can lead to much higher costs and legal trouble, so it’s not worth the risk.

You may lose the exemption retroactively. Ontario now expects that if you claim an NRST exemption (like spousal, nominee, or protected person), you actually occupy the property as your principal residence within 60 days of closing. If you fail to do so, the government can reassess and charge you the 25% NRST after the fact (with interest and possibly penalties), effectively revoking the exemption. In essence, not honoring the occupancy requirement can result in owing the tax later on.

Yes. There’s no parent/child exemption – the only family-based NRST exemption is for spouses. So if, for example, a non-Canadian parent co-purchases a house with their Canadian citizen or PR child, the presence of the foreign parent means the full 25% NRST will apply to the purchase (even though one buyer is Canadian).

Yes. A corporation that qualifies as a “foreign corporation” (incorporated outside Canada or controlled by foreign persons >50%) is treated as a foreign buyer, so it must pay the 25% NRST on a residential property purchase. There are no special exemptions for companies, and unlike an individual, a company can’t become a “permanent resident” – using a foreign-owned corporation will still incur the tax, with no rebate available.

Yes – a cottage or vacation property is still “residential land” in Ontario. If it has one to three dwelling units (like a lakefront cottage with a cabin or house on it), a foreign buyer will pay the 25% NRST, even if it’s just a seasonal or secondary home. There’s no exception for recreational properties: as long as the property includes a habitable dwelling, it falls under NRST when a foreign entity buys it.

Technically, yes – if only the Canadian citizen/permanent resident spouse is on title as the buyer, then NRST won’t be triggered at purchase (since no foreign person is a transferee). However, the foreign spouse would have no legal ownership in the property initially, which has significant implications (the mortgage must be in the Canadian’s name alone, the foreign spouse isn’t protected on title, etc.). Some couples use this strategy and plan to add the foreign spouse to title later once they become a PR. It can avoid the tax, but it should be approached with caution due to the legal and practical issues of leaving one spouse off title.

Yes. Buying a pre-construction home or condo doesn’t exempt a foreign buyer from NRST. The 25% tax will be applied at the time the property’s title is transferred to the foreign buyer (usually at final closing when the unit is registered), just like any resale purchase. In short, a foreign buyer will still owe NRST on a new-build property once they take ownership, even if the purchase agreement was signed before the home was built.

It’s highly advisable. NRST rules and paperwork can be complex, so having a real estate or tax lawyer is very helpful. A lawyer will ensure that any exemption is properly claimed at closing and can assist in preparing rebate or relief applications correctly. While not legally required to have a lawyer for a rebate, professional guidance greatly reduces errors and helps navigate the process (given the large amounts at stake).

It’s 25% in total on the property, not 25% each. The NRST is calculated on the full value of the home, so two foreign co-buyers purchasing one property will pay one NRST amount equal to 25% of the price (they don’t each pay separately – the tax isn’t double-counted). They will be jointly responsible for that single 25% tax payment.

The only legitimate ways are through the built-in exemptions or by waiting until you’re not “foreign.” For example, a foreign buyer can avoid NRST by buying with a Canadian spouse (spousal exemption), or if they have status as a nominee or protected person. Otherwise, avoiding the tax means delaying the purchase until you become a permanent resident or citizen (since then you’re no longer a foreign buyer). Other creative tactics (like putting the property solely in a Canadian friend’s name) are either not permissible or carry other risks. Essentially, if you’re a foreign national today and none of the exemptions apply, you should expect to pay the NRST on an Ontario home purchase.

Generally, no – NRST applies to purchases where a foreign entity is buying property (consideration is paid). If a property is transferred as a genuine gift or inheritance without payment, it typically isn’t subject to land transfer tax or NRST. For example, if a foreign heir inherits a home through a will, that transfer isn’t treated as a taxable sale, so NRST would not be charged. (It’s wise to get legal advice in such scenarios to ensure the transfer is structured properly, but true gifts/inheritances don’t trigger NRST.)

Yes. NRST and MNRST are surtaxes on top of the standard land transfer taxes. A foreign buyer in Toronto pays everything a local buyer would – the Ontario land transfer tax and Toronto’s municipal land transfer tax – and then additionally pays the 25% NRST and 10% MNRST on top. (The land transfer taxes and speculation taxes are calculated together at closing.)

From official sources and qualified professionals. The Ontario Ministry of Finance’s website has up-to-date information on the NRST (including detailed guidelines and contact info), and the City of Toronto’s website provides details on the MNRST. You can also consult the actual law and regulations (Ontario’s Land Transfer Tax Act and O. Reg. 182/17, and Toronto’s municipal by-law on the MNRST) for exact wording. Because the rules can change and individual situations vary, it’s best to consult a knowledgeable real estate or tax lawyer if you need personalized advice – they can help ensure you qualify for any exemptions or properly file for rebates/relief as needed.