Canada Foreign Buyer Ban Update 2027

Yes — the Prohibition on the Purchase of Residential Property by Non-Canadians Act remains in effect in 2027. The ban was originally enacted in January 2023 for two years, then extended through 2026, and extended again through 2027. It prohibits non-Canadian citizens and non-permanent residents from purchasing residential real estate in Canada. The federal government has signalled ongoing review but has not announced a sunset date. Municipal and provincial foreign buyer taxes (BC's Additional Property Transfer Tax, Ontario's NRST) continue to apply on top of the ban for those categories that remain eligible to purchase. See Canada.ca — Foreign buyer ban overview.

Key exemptions under the Act: (1) Canadian citizens and permanent residents: fully exempt — the ban applies only to non-Canadians; (2) Refugees and refugee claimants: exempt; (3) International students: exempt if enrolled in a Canadian post-secondary institution and the property value is ≤ $500,000, they have filed income taxes in Canada for 5 years, and they hold a valid study permit with certain conditions; (4) Temporary foreign workers: exempt if they have a valid work permit, have worked in Canada for at least 3 years, have filed taxes, and the property is under $500,000; (5) Commercial property: the ban covers residential property only — non-Canadians can still buy commercial real estate; (6) Recreational property in exempt areas: rural recreational properties outside Census Metropolitan Areas were exempted in a March 2023 amendment. See Justice Canada — Full Act text.

Violations of the Prohibition Act carry significant penalties: individuals convicted face fines up to $10,000. A court can order the sale of the property purchased in violation of the Act. The prohibition applies to both the buyer and any person or entity that knowingly assists a violating purchase — including real estate agents, lawyers, and lenders who knowingly facilitate a prohibited transaction. The Canada Revenue Agency (CRA) and the Real Estate Council of Canada were involved in enforcement planning. Buyers should provide statutory declarations confirming their status. See Canada.ca — Foreign purchase prohibition.

The federal ban and provincial foreign buyer taxes are separate and additive. For non-Canadians who are exempt from the federal ban (e.g., work permit holders meeting eligibility criteria): (1) In British Columbia, the Additional Property Transfer Tax (APTT) of 20% applies to foreign nationals purchasing in designated areas (Metro Vancouver, Fraser Valley, Capital Regional District, etc.) on top of regular PTT; (2) In Ontario, the Non-Resident Speculation Tax (NRST) of 25% applies to non-Canadian citizens and non-permanent residents purchasing residential property across Ontario. Exemptions exist for Ontario NRST (newcomers, international students meeting conditions, certain nominees). Even buyers who are not subject to the federal ban may be subject to these provincial taxes. See Canada property transfer tax guide.

The Prohibition Act explicitly closes the corporate loophole: a corporation is prohibited from purchasing residential property if any non-Canadian holds 3% or more of its shares or voting rights, or if it was incorporated under non-Canadian laws. Trusts, partnerships, and other entities are also covered — the test looks through to the ultimate beneficial owners. This prevents the common pre-ban strategy of purchasing through a Canadian company. There is an exception for publicly traded corporations listed on a Canadian stock exchange. For genuine commercial real estate investment structures that do not involve residential property, foreign investment in Canadian real estate remains possible. See Canada.ca — 2023 regulatory amendments.