Canada’s foreign buyer ban stops most people who aren’t Canadian citizens or permanent residents from buying a home in the country’s urban areas. The law is the Prohibition on the Purchase of Residential Property by Non-Canadians Act. This page covers who it applies to, the exemptions and penalties, and the provincial taxes and federal flipping rule that apply alongside it.
Current status
The Act and its regulations came into force on January 1, 2023 (CMHC). The ban was set to expire on January 1, 2025; in February 2024 the government extended it to January 1, 2027 (Finance Canada). Check for any later change before you buy.
Who can't buy
The Act defines a non-Canadian as:
- an individual who is not a Canadian citizen, a person registered as an Indian under the Indian Act or a permanent resident;
- a corporation incorporated outside Canada;
- a Canadian corporation not listed on a Canadian stock exchange and controlled by one of the above. Under the regulations, control means owning 10% or more of the equity value or voting rights, or control in fact.
What property is covered
Residential property means a detached house or similar building with no more than 3 dwelling units, or a semi-detached house, rowhouse unit or residential condominium unit. The regulations exclude property outside a census metropolitan area or census agglomeration, and don’t treat these as purchases:
- acquiring an interest through death, divorce, separation or a gift
- renting a home as a tenant
- a creditor enforcing a security interest
- a non-Canadian buying residential property for development
Exemptions
| Who | Conditions |
|---|---|
| Work permit holders | At least 183 days of validity left on the work permit or authorization on the purchase date, and no more than one residential property |
| International students | Filed all required tax returns for each of the 5 previous years, physically present at least 244 days in each of those years, price no more than $500,000, and no more than one property |
| Protected persons | Exempt under the Act; refugee claimants whose claim has been referred to the Refugee Protection Division are exempt under the regulations |
| Spouses and common-law partners | A non-Canadian buying with a spouse or partner who is a citizen, person registered under the Indian Act, permanent resident or exempt person |
| Diplomats and others | Holders of diplomatic, consular or official acceptances, and people granted temporary status to flee conflict |
Penalties
A non-Canadian who buys in breach of the ban, and anyone who knowingly counsels, induces, aids or abets them, faces a fine of up to $10,000. On the government’s application, a provincial superior court can order the property sold. The sale itself remains valid.
Provincial taxes on foreign buyers
Being exempt from the federal ban doesn’t exempt you from provincial taxes:
- Ontario: the Non-Resident Speculation Tax is 25% of the price anywhere in the province, effective October 25, 2022 (Ontario).
- British Columbia: the additional property transfer tax is 20% of fair market value in the Capital, Fraser Valley, Metro Vancouver, Central Okanagan and Nanaimo regional districts (BC).
Non-resident property tax in Canada covers the other taxes non-residents pay, including withholding on a sale.
Selling within a year: the flipping rule
A separate federal rule applies to everyone, Canadian or not. A gain on a home you owned for less than 365 consecutive days is taxed as business income rather than a capital gain, unless the sale was due to a qualifying life event such as a death, a separation or a new household member (CRA). Flipping houses tax rules explains how it works.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- Canada Revenue Agency: Principal residence
- CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Department of Finance Canada: Government announces two-year extension to ban on foreign ownership of Canadian housing
- Government of British Columbia: Additional property transfer tax for foreign entities and taxable trustees
- Government of Ontario: Non-Resident Speculation Tax
- Justice Laws (Canada): Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Justice Laws (Canada): Prohibition on the Purchase of Residential Property by Non-Canadians Regulations