Ontario has announced a 15% tax on some purchases or acquisitions of residential property.
The new Non-Resident Speculation Tax (NRST), which would apply in addition to Ontario’s general land transfer tax, is part of several new measures intended to address demand for housing in Ontario. Other announced changes include expanded rent control and amendments to allow municipalities to consider additional taxes (e.g., a vacant homes property tax).
While the NRST will be effective as of April 21, 2017, this new tax will not apply to binding agreements of purchase and sale signed on or before April 20, 2017. The NRST will also not apply to transfers of multi-residential rental apartment buildings, agricultural land or commercial/industrial land.
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