Updated Checked by the Tax-Services.ca editorial team How we check
The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act bars most non-Canadians from buying homes of up to three units in cities and towns. A conviction can bring a fine of up to $10,000. Under the law as it reads on 31 October 2026, the Act is repealed on 1 January 2027, and we found no official extension or replacement. Ontario’s 25% and BC’s 20% taxes are separate.
Status on 31 October 2026: The Justice Laws pages for the Act and its regulations are current to 30 September 2026. They list the repeal as a change that is not yet in force. We found no official page announcing an extension, a replacement or a new end date (checked 31 October 2026).
What does the federal foreign buyer ban cover?
The Act came into force on 1 January 2023. It stops a non-Canadian from buying residential property, directly or indirectly. That term covers individuals who are not Canadian citizens, registered Indians or permanent residents, corporations incorporated outside Canada or a province, and some Canadian corporations that are not listed on a Canadian stock exchange but are controlled by those people or entities. In the regulations, control means owning 10% or more of the equity value or voting rights, or having control in fact.
Residential property means a detached house or other building with no more than three dwelling units, or a unit in a semi-detached house, rowhouse or condominium. The regulations leave out property outside census metropolitan areas and census agglomerations, so many rural and recreational purchases are not covered. The CMHC page on the Act says buildings with four or more units are not covered, and neither is vacant land (since 27 March 2023).
The penalty is a fine of up to $10,000 on summary conviction. It applies to the buyer and to anyone who knowingly helps, and a court can order the property sold.
Who is exempt from the federal ban?
The Act and the regulations list exceptions. The main ones are below, with the conditions the regulations attach.
| Exception | Main conditions |
|---|---|
| Work permit holders | At least 183 days of validity left on the permit on the purchase date, and no more than one residential property bought |
| International students | Tax returns filed for the five years before the purchase year, at least 244 days in Canada in each of those five calendar years, a price of $500,000 or less, and no more than one property |
| Protected persons and refugee claimants | Protected persons under the Immigration and Refugee Protection Act, and refugee claimants whose claim was found eligible and referred to the Refugee Protection Division |
| Buying with a spouse or partner | The spouse or common-law partner is a citizen, registered Indian, permanent resident or another qualifying person |
| Other cases | Inheritance, divorce, separation or gift; renting the unit to a tenant; a creditor enforcing security; buying for development; diplomatic or consular purchases; agreements signed before 1 January 2023 |
Each exception has its own wording in the law. A short summary like this one cannot replace reading it or asking a real estate lawyer.
Does the federal ban end on 1 January 2027?
As the law reads today, yes. Section 236 of the Budget Implementation Act, 2022, No. 1 repeals the Act. Its timing was first set at the second anniversary of the Act coming into force, which was 1 January 2025. In February 2024, Finance Canada announced an intention to extend the ban by two years (Department of Finance: two-year extension). Parliament did that in the Budget Implementation Act, 2024, No. 1 (assented to 20 June 2024), which moved the repeal to the fourth anniversary. That date is 1 January 2027, and the regulations are repealed the same day.
So the ban lapses on 1 January 2027 unless Parliament changes the date or passes something new. We found no official page doing either. Some news coverage mentions a federal review of what should follow. We found no official page with a result, so treat that as unconfirmed.
Which provincial foreign buyer taxes stay in place?
Ontario’s non-resident speculation tax (NRST) and BC’s additional property transfer tax come from provincial laws, so they are separate from the federal Act. Neither official page says the tax ends with the federal repeal.
| Item | Federal ban | Ontario NRST | BC additional tax |
|---|---|---|---|
| What it is | A prohibition with a fine | A tax | A tax |
| Amount | Fine up to $10,000 | 25% of the consideration | 20% of the fair market value of your share |
| Where | Census metropolitan areas and census agglomerations | Ontario | Capital, Fraser Valley, Metro Vancouver, Central Okanagan and Nanaimo regional districts |
| Property | Up to three dwelling units | Land with one to six single-family residences | The residential part of the property |
| Who | Non-Canadians | Foreign entities and taxable trustees | Foreign nationals, foreign corporations and taxable trustees |
In Ontario, the 25% rate has applied since 25 October 2022. If any buyer on the transfer is foreign, the tax applies to the full consideration, and each transferee is liable, even a Canadian co-buyer. A rebate exists if the buyer becomes a permanent resident within four years of registration. In BC, the tax is charged on the percentage interest registered on title, and a BC Provincial Nominee can qualify for an exemption under set conditions.
For more detail, see our articles on the Ontario foreign buyer tax and the BC foreign buyer tax, plus the broader foreign buyer tax overview.
What does the provincial tax look like on a real purchase?
Take an assumed price of $800,000 and the rates on the Ontario NRST page and the BC additional property transfer tax page. This is our calculation, not an official figure. A foreign national buying a home at that price in Ontario would owe NRST of $200,000 (25% of the price), in addition to the regular land transfer tax. The same buyer in Metro Vancouver, as sole owner, would owe additional BC tax of $160,000 (20%). If the foreign buyer registers only a half interest, the BC tax applies to half the value, which is $80,000. You can test your own numbers in our non-resident buyer tax calculator.
What should buyers and sellers ask before closing?
- Is any buyer a non-Canadian under the Act, including a company or trust?
- Which exception applies, and what documents show it?
- Does closing fall before or after 1 January 2027, and how is an agreement signed earlier treated? We found no official page that answers this, so ask a real estate lawyer.
- In Ontario, is any transferee a foreign entity? In BC, is the property inside one of the five regional districts?
- For sellers: has the buyer’s status been confirmed early? A deal that cannot close for legal reasons costs time, and anyone who knowingly helps a prohibited purchase can be fined.
Our guide to home buying costs and taxes lists the other closing costs to budget for.
What could change?
Parliament could pass a bill that moves the repeal date or sets up a different regime, and we cannot say what it would contain. Watch the Justice Laws page for the Act, which shows the repeal as not yet in force, and the Finance Canada news page. Ontario and BC can also change their rates in a budget. Our 2027 tax questions page collects what is confirmed for 2027 and what is still open.
Where does this information come from?
Rules and figures come from the Justice Laws pages for the Prohibition on the Purchase of Residential Property by Non-Canadians Act and its Regulations, the Budget Implementation Act, 2024, No. 1, the Finance Canada release of 4 February 2024 and the CMHC page on the Act. Provincial figures come from the Ontario page on the Non-Resident Speculation Tax and the BC page on the additional property transfer tax. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Does Canada's foreign buyer ban end on 1 January 2027?
Under the Act as amended in 2024, the Prohibition on the Purchase of Residential Property by Non-Canadians Act is repealed on 1 January 2027, the fourth anniversary of its coming into force. We found no official extension or replacement as of 31 October 2026. Check the Justice Laws page for the Act for any change.
Who can still buy a home under the federal foreign buyer ban?
Exceptions include work permit holders with at least 183 days left on their permit who have bought no more than one property, qualifying students, protected persons, refugee claimants and people buying with a citizen or permanent resident spouse. Each exception has its own conditions in the Act and regulations.
What is the penalty for breaking the federal foreign buyer ban?
A non-Canadian who buys residential property in breach of the Act, and anyone who knowingly helps, can be fined up to $10,000 on summary conviction. After a conviction, a court can also order the property to be sold under the Act.
Does Ontario's non-resident speculation tax end with the federal ban?
Ontario's tax is set by provincial law, separate from the federal Act. Ontario's official page gives a rate of 25% effective 25 October 2022 and does not tie it to the federal repeal. Check that page before you buy, as a province can change its rate.
Does the BC foreign buyer tax apply across all of British Columbia?
No. The additional property transfer tax of 20% applies in five regional districts: Capital, Fraser Valley, Metro Vancouver, Central Okanagan and Nanaimo. It is charged on the fair market value of the foreign buyer's registered share of the property.