New Provincial Tax for Non-Residents

In an effort to curb the enthusiasm of foreign investors that are incredibly attracted to our market, this new tax will impose a mandatory 15% on top of the purchase price of all residential properties within the Golden Horseshoe area by non-citizens or non-residents starting April 24, 2017- yes it started already! This new Tax must be paid together with the current Land Transfer Tax on or before closing.

As a real estate lawyer in the Golden Horseshoe Area our non-citizen, non-resident clients may be affected by this tax. For those wondering what area encompasses the Golden Horseshoe, according to one of the maps provided by the Ministry of Finance ( http://gov.on.ca/en/bulletins/nrst/nrst.html ) Simcoe County, Dufferin County, Wellington County, Region of Waterloo, Halton County, Hamilton-Wentworth, County of Brant, Haldimand County, Kawartha Lakes, Niagara, Peel County, Toronto, York County, Durham Region, Peterborough County, and Northumberland County.

Of course, as with many taxes, there are rebates and limited exemptions available for qualifying parties. If you are looking to find the right real estate lawyer for you, make sure they are up to date with their information and understanding of these developments.

If you have questions about whether this new tax will affect your upcoming transaction, feel free to contact our Real Estate Law Offices in Whitby or Apsley.