About Toronto’s Tax Rebates:
Are you from China or Hong Kong and want to buy a home in Toronto?
If so, then you need to know about the Non-Resident Speculation Tax (NRST).
What is the NRST, and who does it affect?
Also called the “Foreign Home Buyer Tax,” the NRST is a 15% tax on all residential properties sold to anyone who is not a citizen or permanent resident of Canada.
That includes people, companies, and taxable trustees from China or Hong Kong.
The 15% tax is only paid at closing, and applies to houses and condominiums.
Even though a 15% tax seems big, there’s good news for Hong Kong and Chinese buyers. The government of Canada is offering a rebate that can help you save money!
Tax Rebates for Chinese and Hong Kong Buyers
People from China or Hong Kong can get a rebate if:
1) They hold the property exclusively (alone) or with their spouse. “Spouse” can mean husband, wife, or someone you’ve lived with more than 3 years
2) They use that property as their “principal residence” (main home) within 60 days of buying or acquiring that property
So who qualifies for the rebate?
- Foreign nationals (people from China or Hong Kong) who become citizens or permanent residents of Canada within 4 years of buying/acquiring property
- International students who have been enrolled full-time for at least 2 years in an Ontario college or university after buying/acquiring property
- Foreign nationals in Ontario who work full-time for a year from the date of buying/acquiring property
How To Apply for the Rebate
To get a rebate, you have to apply for it within 4 years of when the NRST first becomes payable.
For example: if the NRST becomes payable on January 1st, 2018, you have to apply for the rebate before January 1st, 2022.
This rule does not apply to people who become permanent residents of Canada. Instead, they have to apply for the rebate within 90 days of becoming a permanent resident.
It’s also important to note that anyone from China or Hong Kong who applies for the rebate needs to have “supporting documentation.”
In other words: you need to show proof that you qualify for the rebate.
Quick Facts About the Rebate
- Full-time students and permanent residents can apply for the rebate
- The rebate is only for RESIDENTIAL properties, not business properties
- To qualify for the rebate, you need to hold the property exclusively (fully) or with your spouse
- You need to apply for the rebate within 4 years of the NRST becoming payable
Toronto is a wonderful city for Hong Kong and Chinese home buyers.
So if you’re a full-time student, permanent resident, or in the process of becoming one, you can own a house or condo in this beautiful, diverse city.
*This is just for your reference. If you would like more information. Please contact a lawyer for legal advice.
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Wins Lai
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