Ontario has announced a new 15% tax on the purchase or acquisition of residential property located in certain parts of Ontario by non-resident individuals, foreign corporations, and certain taxable trustees.
The new non-resident speculation tax is part of several measures to address demand for housing in Ontario, including changes to rent controls and to allow municipalities to consider additional taxes (e.g., a vacant homes property tax). The non-resident speculation tax would apply in addition to Ontario’s general land transfer tax.
The non-resident speculation tax will be effective as of 21 April 2017 and will not apply to binding agreements of purchase and sale signed on or before 20 April 2017. The non-resident speculation tax will also not apply to transfers of multi-residential rental apartment buildings, agricultural land or commercial/industrial land.
Read an April 2017 report [PDF 71 KB] prepared by the KPMG member firm in Canada: Ontario — New 15% Property Tax for Foreign Buyers
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