Foreign buyer tax (NRST / FBT)
Non-residents face an additional tax on residential purchases in Ontario (25% NRST province-wide) and parts of BC (20% FBT in major regions). Stacks on top of the regular LTT / PTT.
Your scenario
Result
Province-wide 25% Non-Resident Speculation Tax.
Non-Resident Speculation Tax (NRST) in Ontario
Ontario's Non-Resident Speculation Tax applies to residential property purchases by non-Canadian citizens, non-permanent residents, and non-Canadian corporations. The rate is 25% of the purchase price — stacked on top of the regular provincial Land Transfer Tax and Toronto MLTT where applicable.
NRST applies province-wide in Ontario as of 2022 (previously limited to the Greater Golden Horseshoe). It applies to residential properties with 1-6 single-family units. Purpose-built rental developments with 7+ units are exempt.
Foreign Buyer Tax (FBT) in British Columbia
BC charges an additional 20% Foreign Buyer Tax on top of regular Property Transfer Tax. It applies in specific designated areas:
- Metro Vancouver Regional District
- Capital Regional District (Victoria area)
- Fraser Valley Regional District
- Central Okanagan Regional District (Kelowna area)
- Nanaimo Regional District
Outside these designated regions, foreign buyers in BC pay only the regular PTT.
Who counts as a "foreign buyer"?
- Non-Canadian citizens AND non-permanent residents
- Foreign-controlled corporations (where 51%+ ownership is non-Canadian)
- Trusts where any non-Canadian beneficiary holds an interest
- Workers on temporary visas may qualify for partial rebates after meeting residency requirements
Rebates and exemptions
Both Ontario and BC offer partial NRST/FBT rebates if the buyer:
- Becomes a Canadian citizen or PR within a specified window (typically 4 years)
- Lives in the property as principal residence for the qualifying period
- Meets specific work / study visa conditions
The rebate process is complex — work with a Canadian immigration lawyer + real estate lawyer to file correctly.
Federal foreign buyer ban (2023+)
Beyond provincial taxes, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act currently bans most non-Canadians from buying residential property entirely. Limited exemptions exist for permanent residents, work-permit holders meeting strict criteria, and refugees. This ban is in effect until at least January 1, 2027.
What this means in practice
Most non-Canadians cannot legally buy in 2026, and those who can face the 20-25% provincial tax on top of regular costs. Foreign buyers should consult a real estate lawyer + immigration lawyer before any offer.