April 5, 2022
Ontario increases nonresident speculation tax rate and extends application provincewide
Ontario filed Regulation 240/22 on March 30, which implements amendments to increase the nonresident speculation tax rate to 20% (from 15%) and extend the application of the tax provincewide. Further, tax rebates for international students and foreign nationals working in Ontario have been eliminated. These measures apply to conveyances of land tendered for registration on or after March 30, subject to transitional measures. The stated purpose of these measures is to reduce foreign residential real estate speculation and help make Ontario homeownership more affordable for Ontario residents.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert