Citizen or permanent resident of Canada

What do you need to know?

A Canadian citizen is someone who was born in Canada, became a citizen through the permanent residency process, is a first generation born outside of Canada, or a person that was adopted outside of Canada by a Canadian parent. A permanent resident is someone who has immigrated to Canada and been given permanent resident status, but is not a Canadian citizen.

If a purchaser is not a citizen or permanent resident of Canada, they may be subject to foreign purchaser restrictions that block their ability to purchase a Canadian property. Effective January 2023, foreign purchasers cannot buy Canadian property unless they fit within specific exemptions.

Note also that even if a foreign purchaser is able to purchase the property, they will be subject to The Non-Resident Speculation Tax (NRST) when purchasing a residential property located anywhere in Ontario. Effective October 25, 2022, the NRST rate was increased to 25% of the purchase price. If any one of the purchasers is a foreign national, foreign corporation, or taxable trustee, the entire purchase price is subject to the tax.

Why does it matter to Ownright?

It helps us to determine if a purchaser is eligible to purchase a property in Canada and if so, whether or not they will be subject to the NRST.