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

[Tony_psx]

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

 

[steaky]

See under exemptions:

https://www.fin.gov.on.ca/en/bulletins/nrst/

 

[Tony_psx]

See under exemptions:

https://www.fin.gov.on.ca/en/bulletins/nrst/

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]

No, you are a Canadian citizen. But your spouse is a foreign national.

 

[Tony_psx]

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]

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.

 

[Tony_psx]

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]

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]

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?

 

[CanVisa1]

What is your status? Where do you want to buy?

I am on work permit and have applied for PR (I might get COPR anytime).

I am planning to buy in Peel region, Ontario.

 

[steaky]

I am on work permit and have applied for PR (I might get COPR anytime).

I am planning to buy in Peel region, Ontario.

Better to wait until you formally become PR first (at closing).