Buying Land in Canada 2026 | Guide to Vacant Land

Buying Land in Canada

Buying vacant land in Canada is different from buying a house or condo. There is no building to inspect or appraise, fewer comparable sales to set a price, and a list of checks (zoning, access, servicing, soil, water) that a typical home purchase never needs. This page is part of our guide to property types in Canada and covers the types of land, due diligence, costs, GST/HST, farmland, Crown land and the rules that change from province to province.

Types of Land You Can Buy in Canada

Financing a Land Purchase

Lenders treat land as riskier than a home, so land loans usually need a larger down payment, carry a higher rate and come from fewer lenders, with credit unions and private lenders more active than the big banks. Down payments by land type, the lenders that finance land, combined lot-and-construction loans and borrowing against a home you already own are covered in our guide to vacant land mortgages.

Due Diligence Before Buying Land

Land needs a different kind of investigation from a house: instead of checking the plumbing, wiring and foundation (the job of a home inspection), you are investigating what you can do with the land and what hidden costs come with it.

Due diligence checklist

Common pitfalls

1. Buying land you cannot build on: zoning, environmental restrictions or setback requirements can prevent construction entirely.
2. Underestimating servicing costs: bringing hydro, a well, a septic system and a driveway to a remote lot adds up quickly.
3. No legal road access: some lots are “landlocked”, with no frontage on a public road and no registered right-of-way.
4. Buying in a flood zone: flood-prone land may be unbuildable or hard to insure.
5. Assuming farmland can be subdivided: agricultural land in many provinces can’t easily be rezoned or subdivided.

Costs of Buying Land in Canada

GST/HST on land purchases

A real estate lawyer or tax professional can confirm the GST/HST status of a particular sale before closing. Each province’s rate is on the sales tax by province pages.

Building on Land After Purchase

Servicing raw land (a well, a septic system, a hydro connection, a driveway and site clearing) is a cost of its own before construction starts, which is one reason serviced lots sell for more than raw land. The steps from lot to move-in are in our guide to buying land and building a house, the price of construction is in how much it costs to build a house in Canada, and the financing for the build is in construction loans in Canada.

Province-Specific Rules for Buying Land

Ontario

Ontario land purchases turn on municipal zoning, the Greenbelt, conservation authority regulated areas and, for rural lots, septic and well approvals. Our guide to buying land in Ontario covers zoning, lot severance, building permits, septic and well.

British Columbia

In B.C., much of the farmland is in the Agricultural Land Reserve, where building and subdivision are restricted, and some rural subdivisions are sold as bare land strata lots with fees and bylaws. Our guide to buying land in BC covers the ALR, bare land strata, riparian setbacks and wildfire rules.

Alberta

Alberta has no land transfer tax, and rural land is usually bought as an acreage governed by the county or municipal district’s land use bylaw. Our guide to buying land in Alberta covers country residential acreages, development permits, the Real Property Report and oil and gas rights.

Quebec

In Quebec, a notary handles the purchase, the CPTAQ controls non-farm use of land in the agricultural zone, and the welcome tax applies to land as it does to a house. Our guide to buying land in Quebec covers the CPTAQ, the notarial process and the welcome tax.

Saskatchewan

• Farmland ownership restrictions: the Farm Land Security Board enforces restrictions under The Saskatchewan Farm Security Act on who can own and lease farmland, and a buyer the Act restricts can normally hold an interest in no more than 10 acres unless the board grants an exemption order (Government of Saskatchewan).
• No land transfer tax: Saskatchewan charges land titles registration fees instead; see the Saskatchewan land transfer tax page.
• Surface rights: oil and gas activity is common, so buyers check whether the mineral rights are held separately from the surface title.

Manitoba

• Land transfer tax: a progressive tax applies to land purchases; the brackets are on the Manitoba land transfer tax calculator.
• Farmland restrictions: The Farm Lands Ownership Act restricts non-Canadian ownership of farmland.
• Northern land: large parts of northern Manitoba are Crown land and not available for private purchase.

Atlantic Provinces (NS, NB, NL, PEI)

• PEI: Under PEI's Lands Protection Act, a non-resident person or a corporation must apply to the Island Regulatory and Appeals Commission (IRAC) for approval before holding more than 5 acres of land or more than 165 feet of shore frontage in total. A resident is a Canadian citizen or permanent resident who has lived in PEI for at least 365 days in the 24 months before acquiring the land and files their tax return in PEI.
• Nova Scotia: a municipal deed transfer tax applies to land purchases; see the Nova Scotia land transfer tax page.
• New Brunswick: the real property transfer tax applies; see the New Brunswick land transfer tax page.
• Newfoundland and Labrador: Crown land licensing is available for certain uses.
• HST: land bought from a GST/HST-registered developer carries HST of 14% in Nova Scotia, 15% in New Brunswick, 15% in Newfoundland and Labrador and 15% in PEI.

Agricultural Land (Farmland) in Canada

Farmland prices vary widely by province, region and soil quality; Farm Credit Canada publishes an annual Farmland Values Report with provincial figures.

Farmland ownership restrictions

• Alberta: foreign citizens and foreign-controlled corporations may own up to 2 parcels of controlled land totalling no more than 20 acres, while Canadian citizens and permanent residents aren’t affected. Land within a city, town, village or summer village isn’t controlled land (Government of Alberta, foreign ownership of land).
• Saskatchewan: the Farm Security Act restrictions described above.
• Manitoba: The Farm Lands Ownership Act restricts non-Canadian ownership of farmland.
• PEI: the approval rule for non-residents and corporations described above.
• Quebec: the CPTAQ controls zoning changes and non-farm use in the agricultural zone (see buying land in Quebec).
• BC: the ALR restricts how farmland is used rather than who owns it (see buying land in BC).

Lifetime capital gains exemption on farm property

A gain on qualified farm property can be sheltered by the lifetime capital gains exemption, up to $1,275,000 per person in 2026. The property has to meet the ownership and farming tests set out on that page.

Buying Crown Land in Canada

In some provinces, you can buy or lease Crown (government-owned) land:

Crown land purchases typically involve:

• An application to the provincial government
• A survey at your expense
• An environmental assessment
• Payment of fair market value (set by a government appraisal)
• Long processing times (6 months to 2+ years)

Tax Implications of Owning Vacant Land

Steps to Buying Land in Canada

Land due diligence (survey, soil tests, environmental review, perc test, utility inquiries) takes longer than a home inspection, so buyers often negotiate a longer conditional period on a land offer than on a home.

Where to Find Land for Sale in Canada