Foreign Buyer BanPlain-English guide to Canada’s Prohibition on the Purchase of Residential Property by Non-Canadians Act, in force through January 1, 2027 — and the BC 20% additional Property Transfer Tax it sits beside

Federal vs. provincial — not the same thing

Three named-submarket worked examples

How the federal ban and the BC 20% additional Property Transfer Tax stack on real BC submarket prices. All three sit inside both the Vancouver Census Metropolitan Area (federal ban applies) and the Metro Vancouver Regional District (provincial 20% applies). Numbers verified against the Fact Bank, May 9, 2026.

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 Census Metropolitan Area or Census Agglomeration

Geographic limit: only properties inside a Census Metropolitan Area (CMA) or Census Agglomeration (CA) as defined by Statistics Canada are covered. In BC the federal ban scopes the Vancouver CMA (covering Metro Vancouver), the Abbotsford-Mission CMA (Fraser Valley urban core), the Victoria CMA, and the Kelowna CMA. Smaller communities outside CMAs sit outside the ban entirely.

Outside the ban: commercial property, multi-family buildings of four or more units, and recreational property outside CMAs. The 4+-unit carve-out is the design feature most often used by non-Canadian institutional buyers — purpose-built rental and small apartment buildings remain legally accessible while individual condos and townhouses are gated.

Who is exempt

The Act and its regulations carve out narrow exceptions. The first three are person-status categories that don’t even put you inside the definition of “non-Canadian”; the next four are non-Canadians the regulations specifically permit:

Exemption-category source — Fact Bank, verified May 9, 2026.

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 January 1, 2023 and bans most non-Canadians from purchasing residential property in Canadian Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs). The Act was originally scheduled to expire after two years, then extended to January 1, 2025, then extended again in February 2024 to January 1, 2027. Penalties for a violation include fines up to $10,000 plus a court order to sell the property at no profit. The Act runs in parallel with — not instead of — BC's 20% additional Property Transfer Tax, which has been in force since 2016 and predates the federal ban.

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 exception list (below) carves out specific resident statuses that ARE allowed to buy. Always confirm status with an immigration lawyer before writing an offer; brokers and REALTORS® can flag the question but cannot certify the answer.

Who is exempt from the ban?

Seven main exemption categories: (1) Canadian citizens; (2) permanent residents; (3) persons registered as Indian under the Indian Act; (4) refugees and protected persons; (5) foreign nationals married to or in common-law partnership with an exempt person, when buying jointly; (6) certain temporary residents (work permit holders meeting 183-day residency conditions in the prior year + Canadian tax filings; international students at designated learning institutions with extended residency and tax-filing history, with a $500,000 single-dwelling cap that is set in the regulations and may move); (7) diplomats and accredited foreign-mission staff. The eligibility tests are narrow and verification belongs with an immigration lawyer rather than a real-estate agent — REALTORS® will flag the question; lawyers certify the answer.

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% with expanded geography on February 21, 2018) and applies in five BC regional districts: Metro Vancouver, Capital, Fraser Valley, Nanaimo, and Central Okanagan. The federal ban sunsets January 1, 2027; the provincial 20% has no scheduled sunset and continues independently. Budget for both: the federal eligibility check and the provincial 20% line on the closing-day Property Transfer Tax.

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 (townhouses), and individual condominium units — but only when located inside a Census Metropolitan Area (CMA) or Census Agglomeration (CA) 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 inside a CMA. Outside the ban: commercial property, multi-family buildings of four or more units, and recreational property outside CMAs. In BC, the Vancouver CMA covers all of Metro Vancouver, the Abbotsford-Mission CMA covers the Fraser Valley urban core, the Victoria CMA covers Greater Victoria, and the Kelowna CMA covers the Central Okanagan urban core. If you're buying anywhere in those zones, the federal ban is in scope.

Primary sources: Prohibition on the Purchase of Residential Property by Non-Canadians Act and the Department of Finance extension notice (Jan 1, 2027).