What taxes and rules apply to non-residents and foreign buyers in Markham?Two sets of rules apply. Canada’s foreign buyer ban, in place until January 1, 2027, limits who can buy homes with three units or fewer, though permanent residents are not affected and many work permit holders can buy one home under an exception. Separately, Ontario charges a 25% Non-Resident Speculation Tax (NRST) on homes bought by foreign nationals, foreign corporations and certain trusts, unless an exemption applies. Being allowed to buy does not remove the tax. If any buyer on title is a foreign national, the tax applies to the whole price. Speak to a real estate lawyer before you sign an offer.
Markham welcomes families from around the world, and many newcomers want to buy soon after they arrive. The rules depend on your status, who is on title and how the purchase is structured, and mistakes can be very expensive.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, asks every buyer who is not yet a citizen or permanent resident to confirm their status with a real estate lawyer before the first showing, so the offer is structured correctly from the start.
Rule 1: The federal foreign buyer ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act applies to homes with three units or fewer in areas such as Markham, including houses, semis, townhouses and condos. It is in place until January 1, 2027, and the federal government may extend or change it.
| Status | Federal ban |
|---|---|
| Canadian citizen or permanent resident | Not affected |
| Work permit holder | Often allowed to buy one home if the permit has at least 183 days left at purchase |
| Buying with a spouse who is a citizen or permanent resident | Usually allowed under the spousal exception |
| International student | Allowed only in narrow cases with strict conditions |
| Foreign national living outside Canada | Generally not allowed while the ban is in place |
Breaking the ban can lead to a fine of up to $10,000 and a court-ordered sale. Corporations controlled by non-Canadians are also covered. Confirm the current rules with your lawyer, since they may change before January 2027.
Rule 2: Ontario’s Non-Resident Speculation Tax
Ontario’s NRST is 25% of the purchase price and applies province-wide. It is paid on closing, on top of regular land transfer tax.
- Who pays: foreign nationals, foreign corporations and taxable trustees, which includes a trust where any trustee or beneficiary is a foreign entity.
- Co-buyers: if any one buyer on title is a foreign national, the tax applies to the full value, not just their share.
- Common exemptions: Ontario Immigrant Nominee Program nominees, protected persons, and foreign nationals buying with a spouse who is a citizen, permanent resident, nominee or protected person. Exempt buyers generally must move in within 60 days.
- Rebates: a foreign national who pays NRST and becomes a permanent resident within four years may be able to claim a rebate. Rebates for international students and foreign workers were eliminated for purchases on or after March 30, 2022.
A work permit on its own is not an NRST exemption. On a $1,000,000 Markham home, the tax would be $250,000.
Permanent residents versus temporary residents
| Permanent resident | Work permit holder | International student | |
|---|---|---|---|
| Federal ban | Not affected | Exception for one home, conditions apply | Narrow exception, strict conditions |
| Ontario NRST | Not charged | Charged unless an exemption applies | Charged unless an exemption applies |
| First-time buyer land transfer tax refund | May qualify | Must become a citizen or permanent resident within 18 months | Same as work permit holders |
For a step-by-step look at buying as a newcomer, including down payments and newcomer mortgages, see the pros and cons of living in Markham and speak with a lender early.
New to Canada and planning to buy?
Michael John Lau can connect you with real estate lawyers and lenders who work with newcomers, and help you plan your purchase in the right order.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Structuring the purchase: what does not work
Some buyers ask whether buying through a corporation, a trust or a family member avoids these rules. In most cases it does not:
- Corporations controlled by foreign nationals are covered by the federal ban and pay NRST.
- Trusts with a foreign trustee or beneficiary pay NRST.
- Putting title in a relative’s name while you provide the money can create serious legal and tax problems, including questions about who really owns the home.
The right structure depends on your situation. Get advice from a real estate lawyer and an accountant before you place an offer, not after it is accepted.
If you own, rent or sell as a non-resident
- Renting it out: non-resident landlords face federal withholding tax on rent unless they file the proper forms with the Canada Revenue Agency.
- Selling: when a non-resident sells Canadian property, the buyer’s lawyer usually holds back part of the price until the seller provides a clearance certificate from the Canada Revenue Agency. Plan for this timing.
- Toronto: buyers in Toronto may also face a municipal tax for non-residents. Markham does not charge a municipal land transfer tax.
A compliance checklist before you offer
- Confirm your status and how long your permit is valid.
- Check the federal ban and any exception that applies to you.
- Check NRST exemptions and rebates with your lawyer.
- Decide who goes on title before signing, since every name matters.
- Arrange financing with a lender that works with newcomers.
- Budget for every tax, including land transfer tax and any NRST.
Ultimately, the decision is yours. The goal is to make sure you have all the information.
Getting the rules right before you make an offer protects your deposit and your budget. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Can a foreign national buy a home in Markham in 2026?
Generally not, unless an exception applies. Canada’s foreign buyer ban limits purchases of homes with three units or fewer until January 1, 2027. Many work permit holders can buy one home if their permit has at least 183 days left.
What is Ontario’s Non-Resident Speculation Tax?
It is a 25% tax on homes bought by foreign nationals, foreign corporations and certain trusts anywhere in Ontario. It is paid on closing, on top of regular land transfer tax, unless an exemption applies.
Do permanent residents pay NRST in Ontario?
No. Permanent residents and Canadian citizens do not pay the Non-Resident Speculation Tax and are not affected by the federal foreign buyer ban.
Does a work permit exempt me from NRST?
No. A work permit may allow you to buy under the federal rules, but it is not an NRST exemption on its own. Exemptions include Ontario Immigrant Nominee Program nominees, protected persons and certain spouses.
Can I get my NRST back if I become a permanent resident?
A foreign national who pays NRST and becomes a permanent resident within four years may be able to claim a rebate. Conditions apply, so confirm with your lawyer before you buy.
Can I avoid NRST by buying through a corporation?
Usually not. Foreign corporations pay NRST, and corporations controlled by foreign nationals are also covered by the federal ban. Speak to a lawyer and accountant before choosing any structure.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. Sources include the Prohibition on the Purchase of Residential Property by Non-Canadians Act and public legal summaries of Ontario’s Non-Resident Speculation Tax, as available on October 2, 2026. Rules change often. This is not legal or tax advice, so speak to a real estate lawyer and an accountant before making any offer. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
