Issue
The Non Resident Speculation Tax (NRST), applied broadly across the province, imposes a significant and unintended barrier for foreign workers seeking to establish a home in the communities that need them most. While the tax was designed to curb speculative real estate investment, its province wide application fails to reflect regional realities and is undermining economic growth outside major urban centres.
Background
The 25% Non-Resident Speculation Tax (NRST) applies to the purchase or acquisition of an interest in residential property location 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. Implemented in 2017 under the Liberal government, it was intended to quell the trend of foreign speculators looking to turn a quick profit.
When first implemented, the NRST applied only to properties in the Greater Golden Horseshoe Region at a rate of 15 per cent. In March 2022, the government expanded the tax to cover the entire province and increased the rate to 20 per cent. Just months later, on October 24, 2022, the rate was raised again to the current 25 per cent.
At the time of the 2022 expansion, the Minister of Finance described the measure as “the most comprehensive Non-Resident Speculation Tax in the country,” arguing it was necessary to help young families, seniors, and workers struggling to find suitable housing. Yet despite these intentions, Ontario continues to face a severe housing shortage and escalating costs that have pushed home ownership further out of reach for many.
Exemptions to the NRST are limited. The Ontario Immigrant Nominee Program (OINP) provides relief to foreign applicants seeking gainful employment in Ontario. However, OINP processing can take months or years, does not cover all critical shortage occupations, and many foreign workers who would contribute meaningfully to Northern communities do not meet the program’s strict eligibility criteria. This leaves a significant gap where skilled workers willing to establish permanent roots face a prohibitive tax barrier. The province also offers exemptions if the foreign national has refugee status or is purchasing property with a Canadian spouse.
While discouraging speculative investment is a reasonable policy goal, the Ministry of Finance has overlooked the unintended consequences of expanding the NRST across the entire province.
Northern and rural communities face a very different housing landscape than major urban centres, and the NRST fails to account for these regional realities. Rather than speculative buying, Northern and rural communities contend with long term population decline, aging demographics, and persistent workforce shortages. Non-resident ownership supports workforce development, strengthens local economies, and contributes to municipal tax bases that support local infrastructure and fund essential services. A one size fits all tax ignores these realities, discouraging investment and further constraining housing availability in communities already working to attract people and economic opportunity.
Attracting and retaining skilled labour is already a major challenge for employers in Northern and rural Ontario, and the expansion of the NRST has only made this harder. Businesses in these regions have long struggled to find qualified Canadian candidates for a wide range of roles – including healthcare, mining, forestry, hospitality and tourism – leaving them increasingly reliant on international talent to fill critical positions. By imposing a significant tax burden on foreign workers seeking to establish a home in the communities that need them most, the NRST directly undermines employers’ ability to recruit and retain the workforce essential to sustaining local economies and community stability.
Recommendations
The Ontario Chamber of Commerce urges the Government of Ontario to:
- Exempt Northern and rural communities from the Non-Resident Speculation Tax for foreign nationals who commit to occupying the property as their primary residence or hold permanent employment in the community; and,
- Conduct a regional impact assessment of the Non-Resident Speculation Tax in jurisdictions where it remains in effect to determine whether it is meeting its intended objectives and evaluate additional regional exemptions.
Submitted by the Thunder Bay Chamber of Commerce. Co-sponsored by: Greater Sudbury Chamber of Commerce, Muskoka Lakes Chamber of Commerce, North Bay & District Chamber of Commerce, Timmins Chamber of Commerce
UPDATE: This resolution was adopted as a priority issue at the Ontario Chamber of Commerce AGM on April 25, 2026