Land transfer taxes for non-residents and foreign buyers

Each tax is charged on top of the ordinary transfer tax, but the rules on who pays and on what share differ.

Who is caught. British Columbia, Ontario and Toronto tax foreign nationals, foreign corporations and taxable trustees. Ontario's definition of foreign national excludes people registered under the Indian Act. Nova Scotia's tax applies to non-residents of Nova Scotia: an individual who is not a resident of the province for income tax purposes, so it can apply to Canadians who live in another province.

What share is taxed. In British Columbia, the 20% applies to the foreign buyer's proportionate share of the fair market value. In Nova Scotia, the 10% applies to the ownership interest transferred to non-residents. In Ontario, if any one buyer is a foreign entity or taxable trustee, the NRST applies to the full value of the consideration and is not prorated. The City of Toronto's pages describe the MNRST as 10 per cent of the purchase price and do not say how it applies when only some of the buyers are foreign.

Worked example: a foreign national buys a $1,000,000 house in Toronto. The buyer pays $16,475 provincial land transfer tax, $16,475 municipal land transfer tax, $250,000 NRST and $100,000 MNRST, for a total of $382,950. A foreign national buying a $900,000 home in Metro Vancouver pays $16,000 general property transfer tax plus $180,000 additional tax.

Quebec, Manitoba, New Brunswick and Newfoundland and Labrador charge non-residents the same transfer tax or fees as residents. Prince Edward Island, Alberta and Saskatchewan limit land ownership instead.

The buyer pays, at the same time as the ordinary transfer tax. In British Columbia, APTT exemptions are claimed on the property transfer tax return at the time of registration with the Land Title Office. In Ontario, each transferee is liable for any NRST payable, so if a foreign buyer does not pay, the other buyers must, even if they are Canadian citizens. Toronto says MLTT and MNRST for foreign buyers are "due upon registration", and every buyer must make a declaration or claim an exemption as part of registration. Nova Scotia's Act requires the tax to be paid to the Minister "before the deed is registered".

British Columbia charges the 20% on the fair market value of the residential portion of the property: the whole value for class 1 residential property, the residential improvement plus 0.5 hectares for a farm dwelling, and only the residential part of a mixed-class property. Ontario and Toronto use the value of the consideration for land containing one to six single family residences; Ontario has also included condominium parking and storage units since March 27, 2024. Nova Scotia uses the purchase price or the assessed value, whichever is higher, for residential property with 3 dwelling units or less, including residential vacant land.

- British Columbia (APTT): 20% in the Capital, Fraser Valley, Metro Vancouver, Central Okanagan and Nanaimo regional districts, but not on Tsawwassen First Nation treaty lands. Exemptions include confirmed B.C. Provincial Nominees and qualifying Canadian-controlled limited partnerships. - Ontario (NRST): 25% anywhere in Ontario since October 25, 2022. Exemptions cover Ontario Immigrant Nominee Program nominees, protected persons and spouses of citizens, permanent residents, nominees or protected persons. A rebate is available to buyers who become permanent residents within four years; the application is due within 180 days of becoming one. - Toronto (MNRST): 10% since January 1, 2025, with the same exemptions; the rebate window is 90 days. - Nova Scotia: 10% for agreements signed after March 31, 2025 (previously 5%). For transfers on or after August 6, 2026, a buyer who intends to move to Nova Scotia within 12 months is not taxed at transfer.

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act is not a tax. It bars non-Canadians from buying residential property, with a fine of up to $10,000. It covers buildings of up to three dwelling units, semi-detached houses, rowhouse units and condominium units, but not property outside census metropolitan areas and census agglomerations. The exceptions include protected persons and non-Canadians buying with a spouse or common-law partner who is a Canadian citizen, registered Indian or permanent resident. Temporary residents are excepted if they meet prescribed conditions. Students must have filed tax returns and been present in Canada for 244 days a year for the five preceding years, and the price can be no more than $500,000. Work permit holders need 183 days or more of validity remaining. Being excepted from the federal ban does not exempt a buyer from Ontario's NRST.

January 1, 2027: under section 237 of the Budget Implementation Act, 2022, No. 1, the federal ban is repealed on "the fourth anniversary" of January 1, 2023. The consolidation current to September 30, 2026 still says this. August 6, 2026: Nova Scotia extended the window for non-residents to become residents from 6 to 12 months. March 26, 2026: Ontario's foreign national definition began to exclude people registered under the Indian Act. April 1, 2025: Nova Scotia's rate rose from 5% to 10%. January 1, 2025: Toronto's MNRST took effect.