What is Canada's Foreign Buyer Ban?

It's the Prohibition on the Purchase of Residential Property by Non-Canadians Act — federal legislation that took effect on 1 January 2023 and bans non-Canadians from purchasing most residential property in Canada. The Act was originally scheduled to expire after two years, but was extended by amendment to remain in force until 1 January 2027. Penalties for a violation include fines up to $10,000 and a court order to sell the property at no profit.

Who counts as a "non-Canadian" under the Act?

Non-Canadian means someone who is not a Canadian citizen, person registered as an Indian under the Indian Act, or permanent resident of Canada. It also includes foreign-controlled corporations and entities — so a company majority-owned by non-Canadians falls inside the definition even if registered in Canada. The exceptions list (below) carves out specific resident statuses that ARE allowed to buy.

Who is exempt from the ban?

The main exempted groups are: refugees and protected persons, temporary residents who meet specific work or study criteria (international students with extended residency and tax-filing history; foreign workers with Canadian work history and tax filings), diplomats and accredited foreign-mission staff, and the Canadian-citizen-or-PR spouse / common-law partner of a non-Canadian buying jointly. The exact qualifying criteria are detailed in the regulations — they're narrow, and verification belongs with an immigration lawyer rather than a real-estate agent.

How is the federal ban different from BC's 20% Foreign Buyer Tax?

They're separate pieces of legislation that solve different things. The federal ban determines whether a non-Canadian can buy at all. The provincial 20% Additional Property Transfer Tax determines what a non-Canadian pays (when an exception or pre-ban transfer applies) on top of the regular Property Transfer Tax. The provincial tax has been in force since 2016 (initially 15%, raised to 20% in 2018) and applies in five BC regional districts — it predates the federal ban and remains active independently.

What kinds of property does the ban actually cover?

The Act defines "residential property" narrowly: detached houses with three or fewer dwelling units, semi-detached houses, rowhouses, and individual condominium units — but only when located inside a Census Agglomeration or Census Metropolitan Area as defined by Statistics Canada. Properties in smaller, non-CMA areas are NOT covered. Vacant land zoned for residential or mixed use IS covered if it's in a CMA. Commercial property, multi-family buildings of four or more units, and recreational property outside CMAs sit outside the ban.

Federal legislation

Foreign Buyer BanPlain-English guide to Canada’s Prohibition on the Purchase of Residential Property by Non-Canadians Act, in force through 2027

The federal Foreign Buyer Ban is the Prohibition on the Purchase of Residential Property by Non-Canadians Act — a piece of federal legislation that took effect on 1 January 2023 and is currently in force through 1 January 2027 (extended by amendment from its original 2025 expiry).

The page is a reference for buyers and sellers in Greater Vancouver and the Fraser Valley who run into the Act in transactions: who counts as a non-Canadian, what counts as residential property, what the exceptions actually require, and how the Act interacts with BC’s separate 20% Additional Property Transfer Tax for foreign buyers (which predates the federal ban and continues independently).

Federal vs. provincial — not the same thing

Federal — the ban

Prohibition on the Purchase of Residential Property by Non-Canadians Act

Determines whether a non-Canadian can buy at all. National scope, applies to Census Metropolitan / Agglomeration areas only. Effective Jan 2023 — in force through Jan 2027 under current legislation. Penalties up to $10,000 plus a court order to sell at no profit.

BC provincial — the tax

Additional Property Transfer Tax (20%)

Determines what a non-Canadian pays (when an exception or pre-ban transfer applies). Active in five BC regional districts since 2016 (15%, raised to 20% in 2018). Independent of the federal ban — it predates the ban and continues regardless of its sunset. See the PTT guide for details.

What counts as “residential property”

The Act defines residential property narrowly:

Detached houses with three or fewer dwelling units
Semi-detached houses
Rowhouses (townhouses)
Individual condominium units
Vacant land zoned for residential or mixed-use, when inside a CMA / CA

Geographic limit: only properties inside a Census Metropolitan Area (CMA) or Census Agglomeration (CA) as defined by Statistics Canada are covered. Smaller communities outside CMAs sit outside the ban.

Outside the ban: commercial property, multi-family buildings of four or more units, and recreational property outside CMAs.

Who is exempt

The Act and its regulations carve out narrow exceptions:

Refugees and protected persons

Individuals with refugee or protected-person status under the Immigration and Refugee Protection Act.

Temporary residents — work category

Foreign workers who have worked in Canada for at least three of the four years preceding purchase and have filed Canadian income tax returns for at least three of those years.

Temporary residents — student category

International students enrolled in an authorized study program at a designated learning institution, with at least five years of continuous Canadian residency, Canadian tax filings for the previous five years, and a purchase price under $500,000 for a single dwelling unit (the $500K threshold is in the regulations and may move).

Diplomats and accredited foreign-mission staff

Members of accredited diplomatic and consular missions, with status confirmed under the Foreign Missions and International Organizations Act.

Spousal / common-law partner exception

A non-Canadian buying jointly with a Canadian-citizen or PR spouse / common-law partner is exempt for that joint purchase.

Frequently Asked

What is Canada's Foreign Buyer Ban?: It's the Prohibition on the Purchase of Residential Property by Non-Canadians Act — federal legislation that took effect on 1 January 2023 and bans non-Canadians from purchasing most residential property in Canada. The Act was originally scheduled to expire after two years, but was extended by amendment to remain in force until 1 January 2027. Penalties for a violation include fines up to $10,000 and a court order to sell the property at no profit.
Who counts as a "non-Canadian" under the Act?: Non-Canadian means someone who is not a Canadian citizen, person registered as an Indian under the Indian Act, or permanent resident of Canada. It also includes foreign-controlled corporations and entities — so a company majority-owned by non-Canadians falls inside the definition even if registered in Canada. The exceptions list (below) carves out specific resident statuses that ARE allowed to buy.
Who is exempt from the ban?: The main exempted groups are: refugees and protected persons, temporary residents who meet specific work or study criteria (international students with extended residency and tax-filing history; foreign workers with Canadian work history and tax filings), diplomats and accredited foreign-mission staff, and the Canadian-citizen-or-PR spouse / common-law partner of a non-Canadian buying jointly. The exact qualifying criteria are detailed in the regulations — they're narrow, and verification belongs with an immigration lawyer rather than a real-estate agent.
How is the federal ban different from BC's 20% Foreign Buyer Tax?: They're separate pieces of legislation that solve different things. The federal ban determines whether a non-Canadian can buy at all. The provincial 20% Additional Property Transfer Tax determines what a non-Canadian pays (when an exception or pre-ban transfer applies) on top of the regular Property Transfer Tax. The provincial tax has been in force since 2016 (initially 15%, raised to 20% in 2018) and applies in five BC regional districts — it predates the federal ban and remains active independently.
What kinds of property does the ban actually cover?: The Act defines "residential property" narrowly: detached houses with three or fewer dwelling units, semi-detached houses, rowhouses, and individual condominium units — but only when located inside a Census Agglomeration or Census Metropolitan Area as defined by Statistics Canada. Properties in smaller, non-CMA areas are NOT covered. Vacant land zoned for residential or mixed use IS covered if it's in a CMA. Commercial property, multi-family buildings of four or more units, and recreational property outside CMAs sit outside the ban.

Reference, not legal advice. Eligibility under the Act’s exception list depends on specific immigration history, work / study patterns, and tax-filing record — verification belongs with an immigration lawyer rather than a real-estate agent. The federal ban regulations also reference dollar thresholds (the $500K student-category limit, etc.) that the government can revise without amending the Act itself; the canonical text lives at the Justice Laws website.

Talk through your situation

Buying or selling in Greater Vancouver or the Fraser Valley with any non-Canadian element to the transaction (immigration status, joint ownership, foreign-controlled entity)? Worth a conversation up front. Bronson can flag the issues that need an immigration-lawyer cross-check before they become offer-and-acceptance issues.

Contact form 778-867-2766