Ottawa spared 15% non-resident home buyer tax
One of the 16 points being introduced by the Ontario government is a 15% tax on non resident buyers aimed at curbing real estate speculation. A similar measure was introduced in British Columbia to deal with Vancouver’s housing boom. The important thing to remember though is that FOR RIGHT NOW this only applies in and around Toronto in an area referred to as the Greater Golden Horseshoe.
The government bulletin states that:
“The non-resident speculation tax (NRST) is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (“foreign entities”) and taxable trustees.
The NRST applies in addition to the general land transfer tax in Ontario.
The GGH includes the following geographic areas: Brant, Dufferin, Durham, Haldimand, Halton, Hamilton, Kawartha Lakes, Niagara, Northumberland, Peel, Peterborough, Simcoe, Toronto, Waterloo, Wellington and York.”
While this doesn’t appear to presently apply to Ottawa and its surroundings it isn’t difficult to imagine this measure being expanded to include other areas of the province if the government believes foreign real estate speculation is expanding to areas outside of the Greater Golden Horseshoe area.