Foreign Buyers

The government has been tweaking their Prohibition on the Purchase of Residential Property by Non-Canadians Act which prevents non-Canadians from buying residential property in Canada for 4 years starting on January 1, 2023

The Act applies to:

- Individuals who are not Canadian citizens, or who are not permanent residents, or are not registered under the Indian Act, or is a corporation controlled by someone who is non-Canadian.

The individuals who are exempt from above are:

- A temporary resident STUDYING in Canada who is enrolled in a program or authorized study at a designated learning institution, AND has filed income tax returns for the past 5 years proceeding a purchase, AND has been physically present in Canada for at least 244 days in each of the past 5 years proceeding a purchase, AND has not purchased a property in Canada already while the prohibition is in effect (only one purchase for them during this two year period), AND the property price does not exceed 500k.

Meaning anyone who has moved to Canada with a study permit (student visa) and wants to purchase a place, has to have been here for the past 5 years, filed taxes for those 5 years, and been here physically for those 8 months of school each year, and can’t purchase anything over 500k.

- A temporary resident WORKING in Canada who holds a valid work permit or are authorized to work in Canada, AND have 183 days or more of validity remaining on their work permit or work authorization at time of purchase, AND has not purchased a property in Canada already while the prohibition is in effect (only one purchase for them during this two year period).

Meaning anyone on a work permit (work visa) wanting to purchase a place, it means they have to have at least 6 months remaining on their work permit or work authorization in Canada when they purchase the home and take possession of it. They do not have the 500k limit on the purchase price.

Also exempt are individuals who are:

- An eligible refugee.

- An accredited member of a foreign mission in Canada.

- A non-Canadian Spouse or Common-Law Partner of someone above whom the prohibition does not apply.

There is an exemption for non-Canadians who purchase a property for development.

There is also an exemption on location. Foreign buyers can purchase in rural areas and small towns outside of any Census Metropolitan Area (area with a total population of at least 100k with 50k in the core - for example Edmonton, Red Deer, Calgary, and Lethbridge, and their surrounding areas - including the satellite communities outside of these cities, such as Sherwood Park, Spruce Grove, Stony Plain, Beaumont, etc.) and any Census Agglomeration (core population of at least 10k - for example Fort McMurray, Grande Prairie, Medicine Hat, and their surrounding areas).

See Guidance Tool.

For more info click here.

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