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Question for Non‑Resident Speculation Tax (NRST) a.k.a Foreign Buyer Tax in Toronto

Tony_psx

Newbie
Jun 1, 2020
6
0
I'm not sure if I need to pay 15% NRST in this situation. Can anyone advise? Thanks

Background:
I'm currently a non-resident and not living in Canada. I am the citizen as I have the Canadian passport.
I'm sponsoring my wife to get PR. So she is the foreign entity now as the PR application is still pending.
Once her PR application is approved, we will buy the house then move to Canada.

Question:
1) If I buy the house only under my name, will I need to pay 15% NRST? because I'm still being a non-resident at that time (not living in Canada yet).
2) If I buy the house with both of our names, will I need to pay 15% NRST? any special process do I need to do?

Thanks a lot
 

Tony_psx

Newbie
Jun 1, 2020
6
0
Am I considered a foreign national in this case? Thanks
I'm a Canadian citizen, but I am a non-resident and not living in Canada. Am I a permanent resident?

[quote in NRST webpage]

The NRST applies to foreign entities or taxable trustees who purchase or acquire residential property in the GGH.

A foreign entity is either a foreign corporation or a foreign national.

A foreign national, as defined in the Immigration and Refugee Protection Act (Canada), is an individual who is not a Canadian citizen or permanent resident of Canada.

A permanent resident means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada).
 

steaky

VIP Member
Nov 11, 2008
14,298
1,628
Job Offer........
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No, you are a Canadian citizen. But your spouse is a foreign national.
 

Tony_psx

Newbie
Jun 1, 2020
6
0
No, you are a Canadian citizen. But your spouse is a foreign national.
Thanks. I think I don't need to pay this 15% tax.

The word "Non‑Resident Speculation Tax" has confused me since I'm a non-resident and not living in Canada. I thought I need to pay this tax.
 

TDH Team

Newbie
Jul 2, 2020
5
0
Thanks. I think I don't need to pay this 15% tax.

The word "Non‑Resident Speculation Tax" has confused me since I'm a non-resident and not living in Canada. I thought I need to pay this tax.
That's true, you are NOT subject to NRST if you are a Canadian citizen even though you live overseas.

And if you purchase a property even before your wife becomes a PR (with both your names on title), you are still exempt from NRST.
 
Last edited:

Tony_psx

Newbie
Jun 1, 2020
6
0
That's true, you are NOT subject to NRST if you are a Canadian citizen even though you live overseas.

And if you purchase a property even before your wife becomes a PR (with both your names on title), you are still exempt from NRST.
Thanks a lot for your reply. :)
 

CanVisa1

Star Member
Jul 26, 2017
149
39
Would appreciate anyone's reply.

I am in Canada since last 1 year and 6 months and my PR is in process. If I want to buy a house, will NRST be applicable to me given the fact that I am a resident in Canada?
 

canuck78

VIP Member
Jun 18, 2017
52,959
12,759
Would appreciate anyone's reply.

I am in Canada since last 1 year and 6 months and my PR is in process. If I want to buy a house, will NRST be applicable to me given the fact that I am a resident in Canada?
What is your status? Where do you want to buy?