According to the latest reports from foreign media, Ontario Premier Kathleen Wynne and Ontario Minister of Finance Charles Sousa have jointly announced new housing market control policies in Ontario. These include a 15% non-resident speculation tax, a ban on the flipping of pre-construction properties, incentives for developers to build rental housing, and stricter enforcement of professional standards for real estate agents. The new policies will officially take effect on April 21, local time.
Since Vancouver implemented an additional 15% property transfer tax on foreign buyers on August 2 last year, housing sales in Vancouver have plummeted, and the booming Canadian real estate market has gradually shifted to Toronto.
Since then, the Toronto housing market has remained strong, showing the same intensity as Vancouver previously did. Within six months, most properties have surged in value by 23% to 55%.
Now, less than a year later, Toronto can no longer sustain this pace. Similar to the previous situation in Vancouver, Canada's move is intended to limit foreign buyers from purchasing Canadian real estate. The tax applies to non-Canadian citizens and non-immigrants, which also indirectly reflects that as Canadian housing prices skyrocket, the value of Canadian status has risen accordingly!
What does the 15% property transfer tax on foreign buyers actually mean? Based on the average price of a detached house in Toronto, if an overseas investor wants to buy a property for 2 million Canadian dollars, they would have to pay an additional 300,000 Canadian dollars (approximately 1.5 million RMB) in taxes. However, those with a Maple Leaf Card or immigrant status are exempt from this cost.
Of course, this new tax can be exempted or refunded in several situations: for example, if a spouse is a permanent resident or citizen, an exemption may be granted; if the purchaser becomes a permanent resident within four years, is a student on a study permit studying full-time for two years, or is a worker on a work permit working full-time for one year after purchasing the property, they may be eligible for a refund of the Non-Resident Speculation Tax (NRST).
As high-net-worth individuals from China increasingly immigrate to Canada, and with more Chinese families sending their children to Canada for further studies, more and more people are choosing to immigrate before purchasing property. By obtaining immigrant status before investing, they can avoid the depreciation of the RMB and optimize their global asset allocation.
The most popular Quebec Immigrant Investor Program (QIIP) requires no business management, and has no language, education, or age requirements, allowing applicants to obtain a Maple Leaf Card in one step. It is a purely passive investment, and the investment is only made after approval, allowing for direct acquisition of Canadian permanent resident status. Therefore, it is highly sought after by Chinese investors. Currently, the quota for the Quebec Immigrant Investor Program is being snapped up rapidly. For details, please inquire: 400-138-2929