Foreign buyer ban

Common questions about the foreign buyer ban

• What is Canada's Foreign Buyer Ban?

  It is the Prohibition on the Purchase of Residential Property by Non-Canadians Act, in force since January 1, 2023. It stops most non-Canadians from buying a house, semi-detached home, rowhouse or condominium unit inside a census metropolitan area or census agglomeration. The Act was written to lapse on January 1, 2025. A 2024 amendment moved that to January 1, 2027. A person who breaks it faces a fine of up to $10,000, and a court can order the property sold. BC's 20% additional Property Transfer Tax is a separate law and runs in parallel. Source: Justice Laws, Prohibition on the Purchase of Residential Property by Non-Canadians Act, sections 4, 6 and 7 (laws-lois.justice.gc.ca).
• Who counts as a "non-Canadian" under the Act?

  An individual who is not a Canadian citizen, not a person registered as an Indian under the Indian Act and not a permanent resident. It also covers a corporation incorporated outside Canada. A Canadian corporation counts if its shares are not listed on a Canadian stock exchange and it is controlled by a non-Canadian individual or foreign corporation. Confirm status with an immigration lawyer before writing an offer. A REALTOR® can raise the question but cannot certify the answer. Source: Justice Laws, Prohibition on the Purchase of Residential Property by Non-Canadians Act, section 2 (laws-lois.justice.gc.ca).
• Who is exempt from the ban?

  Seven groups can buy. Protected persons and refugees. Work permit holders who meet the conditions. International students who meet stricter conditions. A non-Canadian buying jointly with a spouse or common-law partner who is a citizen, permanent resident or otherwise exempt. Diplomats and accredited mission staff. People admitted under a safe-haven exemption for those fleeing conflict. And certain purchases the rules do not count, such as one that comes by inheritance or gift. Source: Justice Laws, the Act section 4 and the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations, sections 4 to 6 (laws-lois.justice.gc.ca).

  A work permit holder needs 183 days or more of validity left on the permit on the purchase date and may have bought no more than one residential property. The older test of prior-year residency and tax filings was repealed on March 27, 2023. An international student at a designated learning institution must have filed Canadian tax returns for each of the five previous years and been in Canada at least 244 days in each of those years. The price may not exceed $500,000, and the student may have bought no more than one residential property. A spouse buying alone while married to an exempt person is not covered: the exception is for a joint purchase. Source: Justice Laws, section 5 of the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (laws-lois.justice.gc.ca).
• How is the federal ban different from BC's 20% Foreign Buyer Tax?

  The federal ban decides whether a non-Canadian may buy. The BC tax decides what a foreign national, foreign corporation or taxable trustee pays on closing day when a purchase goes ahead. The BC tax is 20% of the fair market value of your share of the residential property, on top of the regular Property Transfer Tax. It applies in the Metro Vancouver, Capital, Fraser Valley, Nanaimo and Central Okanagan regional districts. The provincial tax has no end date in the Act or on the BC page. Source: Government of British Columbia, Additional property transfer tax (gov.bc.ca).
• What kinds of property does the ban actually cover?

  Houses and similar buildings with not more than three dwelling units, plus semi-detached homes, rowhouse units and individual condominium units. Only property inside a census metropolitan area or census agglomeration is covered. Those are Statistics Canada's names for a city and its commuter belt. In BC that takes in Metro Vancouver, the Abbotsford and Mission area, Greater Victoria and the Central Okanagan. Property outside both is not covered. Check a specific address against Statistics Canada's boundaries. Source: Justice Laws, the Act section 2 and the Regulations section 3 (laws-lois.justice.gc.ca).
• Does the ban end on January 1, 2027, and what happens then?

  By the law as written, yes. Section 236 of the Budget Implementation Act, 2022, No. 1 repeals the Act, and the 2024 amendment brings that repeal into force on the fourth anniversary of the Act, January 1, 2027. The federal budget of November 5, 2026 proposes extending the ban on existing homes to January 1, 2029 and exempting new homes. That is a proposal, not law, so until a bill passes the date stays January 1, 2027. If the Act lapses, the federal prohibition ends and BC's 20% additional Property Transfer Tax still applies. Source: Justice Laws, Budget Implementation Act, 2024, No. 1, section 149 (laws-lois.justice.gc.ca).