Ontario has increased the Non-Resident Speculation Tax to address the housing shortage created in part by non-residents who buy homes in the province. Effective March 30, 2022, all foreign buyers in Ontario who are not citizens or permanent residents but want to invest in real estate in Ontario will have a 20% speculation tax added to the price of their homes. The Ontario non-resident homebuyer tax increase is to address Ontario's housing crisis by prioritizing Ontario families and homebuyers over non-residents. This is an increase from the previous 15% non-resident speculation tax.
In addition to the increased non-resident homebuyer tax, the new foreign buyer tax measure closes certain loopholes in the tax and expanded the tax across the province. Previously, the speculation tax only applied to Ontario's Greater Golden Horseshoe Region in Southern Ontario.
Ontario has committed to working with the federal government and other provinces to introduce similar measures across Canada to address foreign speculation in Canada’s real estate market.
Rebates and Exemptions for Newcomer Ontario Homebuyers
Ontario continues to welcome immigrants to the province to help grow the economy and create jobs for Canadians. To encourage immigrant homeownership. Ontario also announced new rebates for permanent residents in Canada, including foreign nationals studying and working in Ontario:
Rebates remain available for foreign nationals who become permanent residents of Canada within four years after the tax became payable. Exemptions also remain available for nominees under the Ontario Immigrant Nominee Program, protected persons (refugees), and spouses of individuals not subject to the Non-Resident Speculation Tax, if eligibility criteria are met.
The homeowner rebates are available to immigrants who are Canadian residents and first-time homeowners and meet other criteria.
Do You Want to Become an Ontario Permanent Resident?
Canadian permanent residents and citizens are entitled to privileges and protections that are not available to non-residents. Canadian permanent residents can:
- get many of the social benefits that Canadian citizens receive, including health care coverage and education
- live, work or study anywhere in Canada
- apply for Canadian citizenship
- Receive protections under Canadian laws and the Canadian Charter of Rights and Freedoms
There are many pathways to becoming a permanent resident including:
- Economic and Business Immigration
- Express Entry
- Parent and Grandparents Program
- Family Class Sponsorship
Do You Have Questions About Becoming a Canada Permanent Resident?
Ackah Business Immigration Law is a full-service immigration law firm in Toronto, Calgary, and Vancouver servicing businesses and individuals. Contact Ackah Law today at (403) 452-9515 or email us directly.