Under what circumstances does a buyer have to pay foreign speculation tax?

The Non-Resident Speculation Tax (NRST) applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees.

Effective October 25, 2022, the NRST rate was increased to 25 per cent. If any one of the purchasers is a foreign national, foreign corporation, or taxable trustee, the entire purchase price is subject to the tax.

An exemption from NRST may be available for registered transfers if the transferee is a nominee, a protected person or a spouse of a Canadian citizen, a permanent resident of Canada, a nominee or a protected person.