The City of Toronto will introduce a 10% tax on residential property purchases by foreign buyers, including individuals and corporations, not residing in Canada, effective 1 January 2025.
This newly introduced tax falls under the Municipal Non-Resident Speculation Tax (MNRST) scope. The MNRST must be paid on the closing date—the same day funds are transferred, and ownership of the property is officially transferred.
MNRST is collected from non-residents (foreign buyers) on certain residential properties purchased in Toronto. This tax aims to safeguard the availability of the residential housing supply in Toronto. It helps maintain affordability in the residential real estate market by discouraging international buyers from purchasing property they do not intend to live in, or where the purchase is for purely speculative motives. The MNRST applies in addition to the Municipal Land Transfer Tax (MLTT).
The MLTT is charged on properties purchased in Toronto and on unregistered dispositions of a beneficial interest in land with closing dates on or after 1 February 2008.
