FOREIGN BUYER BAN CANADA 2023
Effective January 1, 2023, non-Canadians are banned from purchasing residential property in Canada for two years after parliament passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act On June 23, 2022.
Broadly speaking, the Act prohibits foreign corporations and individuals who are not permanent residents of Canada or Canadian citizens from purchasing residential real estate in Canada between January 1, 2023, and December 31, 2024.
It does not apply to Canadian citizens and permanent residents.
The Act applies to non-Canadians directly or indirectly purchasing residential property in Canada for a period of two years.
The Act governs residential property, including detached houses or similar buildings of one to three dwelling units, as well as parts of buildings such as semi-detached houses, condominium units, or other similar premises. It applies to direct or indirect purchases of residential property, including purchases made through corporations, trusts or other legal entities.
Notwithstanding the Definition of “non-Canadian” set out in the Act, the ban will not apply to the following persons:
• refugees;
• non-Canadian individuals who purchase residential real estate with a spouse or common law-partner provided that their spouse or common law-partner is a Canadian citizen, a permanent resident of Canada, a person registered as an Indian under the Indian Act, or a refugee;
• temporary residents who meet certain criteria to be prescribed in the Anticipated Regulations; and
• such other classes or persons to be set out in the Anticipated Regulations.
The Act also establishes penalties for non-compliance applicable to non-Canadians, as well as any person or entity knowingly assisting a non-Canadian in violating the prohibition. Every person or entity who contravenes the ban and/or knowingly helps someone who is subject to the ban purchase a residential property will be guilty of an offence and liable to be fined up to $10,000. Furthermore, any directors, officers, agents, mandataries, senior officials or managers of a corporation or entity that contravenes the ban may be held personally liable if they direct, authorize, assent, acquiesce in or otherwise participate in contravening the ban.
If a person or entity is found guilty of an offence under the Act, the Minister will have the authority to seek a court order that the residential property be sold in accordance with the Regulations.
