As of January 1, 2023, it is forbidden for any non-Canadian to purchase a residential property in Canada.Thus, only Canadian citizens and permanent residents will be able to purchase a residential property in Canada.
This Prohibition on the Purchase of Residential Property by non-Canadians Act can impact several people involved in real estate such as foreign investors and immigrants.This act will be effective for a period of 2 years and corresponds to the government effort to address rising costs and property speculation by foreign investors.
What and who does this apply to ?
this act applies to residential properties, including detached houses, and similar buildings containing 3 dwelling units maximum : semi-detached houses, rowhouse units, condominium units (divided and undivided), two-storey units, three–storey units and similar premises.
The act also applies to residential property purchased through corporations, trusts or other legal entities.
The prohibition does not apply to :
Canadian citizens;
permanent residents;
people registered as Indians under the Indian Act;
temporary residents within the meaning of the Immigration and Refugee Protection Regulations who satisfy prescribed conditions;
people protected within the meaning of subsection 95(2) of the Immigration and Refugee Protection Act;
people who are non-Canadian and who purchase residential property with their spouses or common-law partners if the spouse or common-law partner satisfies prescribed conditions;
federally or provincially incorporated corporations,, except if they are controlled by non-Canadian people;
foreign states purchasing properties for diplomatic or consular purposes within the Immigration and Refugee Protection Act which satisfy the prescribed conditions as well as people within the meaning of subsection 95(2) of the same act, including refugees;
Individuals who are non-Canadian and who purchase residential property with their spouses or common-law partners if the spouse or common-law partner is a Canadian citizen, a person registered as an Indian under the Indian Act, a permanent resident or a person referred to in the two previous sections.
Offenders risk high fines
Every person or entity that contravenes the act and helps a non-Canadian person purchase a residential property is guilty of an offense and liable to a fine of up to $10000.
Moreover, every person or entity that counsels, incites, persuades or attempts to counsel, incite or persuade a non-Canadian to purchase contrary to the act, is liable to the same fine.
For further details, contact Jennifer Debra Egan at 418.683.4403