Non-Resident Speculation Tax (NRST) Section 20 Exemptions & Rebates 2025: Non residents of Canada (Non Canadians) who have a property in Canada especially in Ontario are required to pay a significant tax of 25% to the government under NRST tax. But there are multiple forms and provisions which will help non canadians to save their savings by paying a minimum tax and getting reference and exemptions over property tax in the country.
This article will explain to you a detailed overview of NRST Section 20 which includes exemptions and rebates for non Canadians having property in Ontario. So if you have any property in Canada and you are not a permanent resident of Canada then you can read this article which will help you to save your money from the NRST Property tax for non canadian property holders in ontario.
What is the NRST Tax?
The cost of living adjustment is high in Canada which is increasing price of the products and assets annually according to the COLA rates. Foreign individuals are looking this situation as a business mindset and continuously purchasing properties in Canada without having a permanent residency in the country. However it is allowed to purchase the land but as most of the properties are purchasing for speculative purposes. So the Government of Ontario in Canada announced a new tax of Non-Resident Speculation Tax (NRST).
The bill is designed to stop search loops and collect relevant revenue from International investors in Canada. Initially the bill was charging 17% tax from the investor, but now it has been increased by 25% in 2025, and all the foreign investors are required to pay the tax while purchasing the property in Canada.
Rebate and Exemptions in NRST tax
If you are willing to relocate in Canada and have sufficient documents provide that you will soon come in Canada or have a relation in Canada then you can Skip the tax and get exemption or get refund of your tax from the government. It is the special exemption in Section 20 of the act.
Who Qualifies for NRST Exemptions?
You need to check the following situations and if you full fill any of the following then you will able to get exemption from this additional 25% tax in Canada:
- If the purchaser of the property is an applicant under the Canada Ontario immigration program then they can use the certification and application form to proof their intent to relocate in Canada under this program. So they will get exemption in this tax.
- All the refugees in Canada are also able to get exemption of NRST tax as they can purchase the land in the country accordingly.
- If the purchaser of the property is the spouse of a permanent a resident of Canada then they can also get exemption of this tax.
Who Are Eligible To Get NRST Tax Rebate?
Apart from the text exemption, You can get your tax amount back as a refund which is known as rebate if you fulfill the certain criteria by the government of Canada. To receive the text rebate, it is required to show your intent to become a permanent resident of Canada in upcoming years.
- If you become the permanent citizen of Canada within 4 year of paying the tax to the government then you can get back your amount by providing sufficient documents of citizenship in Canada.
- If you have official certification from the ministry of finance or have application form to become a permanent citizen of Canada in next 180 days or 4 years then you can also apply to receive the rebate of your amount.
- Apart from this if you purchase the property and make your possession in it in 60 days of purchasing the land with your response or solo, Then you will able to receive the tax rebate from the government accordingly
How to Apply for NRST Section 20 Rebates in 2025?
The application procedure to seek Rebate and exhibition in NRST is Complex where you need to firstly collect all the documentation which are supporting your eligibility criteria and after that should attach it in the department of Finance of Ontario province in Canada under your NRST tax profile. After that you need to arrange a physical or in person meet with the representative of government so they will verify your informations and after that will allowed you to receive the examination or rebate accordingly.
Conclusion
So if you have any document or proof which is intended that you will become a permanent resident of Canada or will not use the property as a Business model then you will be able to receive the benefits of tax rebate or exemption of the Tax under the section 20 of NRST. However, most of the individuals who have applied for the permanent citizenship in Canada under the direct entry or other immigration procedure, Then you will easily receive benefits from the government.
