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NEWS RELEASE
Ontario Continues to Crack Down on Foreign Real-Estate Speculation
Government increasing Non-Resident Speculation Tax rate to 25 per cent, the highest in Canada
October 24, 2022
TORONTO — As part of its plan to tackle Ontario’s housing crisis, the government is prioritizing Ontario families and homebuyers by increasing the Non-Resident Speculation Tax rate from 20 per cent to 25 per cent, effective October 25, 2022.
This increase will strengthen efforts to deter non-resident investors from speculating on the province’s housing market and help make home ownership more attainable for Ontario residents. For many years, there have been concerns that foreign real-estate speculation is an important factor driving up the cost of housing in Ontario.
“Young families, newcomers and those all over the province dream of having their own home, a dream which continues to be out of reach for too many,” said Peter Bethlenfalvy, Minister of Finance. “To help Ontario homebuyers, our government is increasing the Non-Resident Speculation Tax rate by another five percentage points to 25 per cent, making it the highest in Canada, to further discourage foreign speculation in Ontario’s housing market.”
This increase builds on the government’s previous actions taken in March 2022 to make Ontario’s Non-Resident Speculation Tax the most comprehensive in Canada, including:
– Increasing the rate to 20 per cent, from 15 per cent;
– Expanding the tax to apply provincewide, as it previously only applied to homes purchased in the Greater Golden Horseshoe Region; and,
– Eliminating loopholes by focusing relief eligibility to only newcomers who commit to laying down roots in the province long-term.
“Today’s announcement is another step in our government’s plan to make housing more attainable for all Ontarians,” said Steve Clark, Minister of Municipal Affairs and Housing. “We are working to end Ontario’s housing supply crisis – both by building 1.5 million new homes over the next 10 years, and by ensuring Ontarians are able to access our existing housing supply. These measures are a clear indication of our commitment to do precisely that.”
Quick Facts
– The Non-Resident Speculation Tax is applied to the price of homes purchased in Ontario by foreign nationals (individuals who are not citizens or permanent residents of Canada), foreign corporations or taxable trustees.
– The tax rate will increase to 25 per cent for binding agreements of purchase and sale entered into on or after October 25, 2022.
Additional Resources
Media Contacts
Emily Hogeveen
Minister’s Office
Scott Blodgett
Communications Branch