Understanding Canada’s Non-Resident Property Restrictions
Canada has introduced temporary measures that limit certain property purchases by non-Canadians. These rules are designed to stabilise housing affordability in major cities. It is important for foreign investors to understand these restrictions before planning a real estate purchase.
Who Is Considered a Non-Resident?
A non-resident is typically defined as an individual who is not a Canadian citizen or permanent resident. Some exemptions may apply for temporary residents, such as those with valid work permits or study permits.
Key Restrictions (2023–2025)
- Non-residents are restricted from purchasing certain types of residential property in major urban areas.
- These rules do not generally apply to recreational properties such as cottages or rural land.
- Exemptions exist for international students, work permit holders, and those buying multi-unit residential buildings (with 3+ units).
- Commercial real estate is generally not restricted.
Additional Costs for Non-Residents
- Foreign Buyer Tax: In Ontario and British Columbia, a Non-Resident Speculation Tax (NRST) applies — currently up to 25% of the purchase price.
- Legal & compliance costs: Extra documentation may be required to prove eligibility for exemptions.
Our Support
We guide international clients through these restrictions, helping determine eligibility, exploring exempt property types, and ensuring compliance with Canadian real estate law. Our local partners include licensed lawyers, mortgage advisors, and real estate agents experienced in working with foreign investors.
Contact us today for a consultation about non-resident restrictions and legal ways to invest in Canadian real estate.
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