Prohibition on the Purchase of Residential Property by Non-Canadians Act

Definition of “Non-Canadian”

The Prohibition on the Purchase of Residential Property by Non-Canadians Act applies to individuals who aren’t:

• Canadian citizens, or
• permanent residents of Canada, or
• persons registered under the Indian Act

The prohibition also applies to corporations and entities that are:

• formed under the laws of Canada or a province, and
• not listed on a stock exchange in Canada, and
• controlled by someone who is a non-Canadian

The Prohibition does not apply to publicly traded corporations or entities formed under the laws of Canada or a province and controlled by a non-Canadian.

Definition of “Residential Property”

The Prohibition on the Purchase of Residential Property by Non-Canadians Act defines residential property as buildings of up to 3 dwelling units and parts of buildings, like semi-detached houses or condominium units.

The Regulations clarify that the prohibition applies to residential property located in a Census Metropolitan Area (CMA) or a Census Agglomeration (CA) as outlined in greater detail below.

Effective as of March 27, 2023, the prohibition does not apply to vacant land.

Definition of “Purchase”

The Prohibition on the Purchase of Residential Property by Non-Canadians Act applies to direct or indirect purchases of residential property.

There are some situations where the prohibition doesn’t apply, including:

• when somebody acquires an interest in a residential property resulting from a divorce, separation, gift, or death;
• when a non-Canadian rents a dwelling unit for the purpose of occupying the dwelling unit. In other words, a non-Canadian who is renting and occupying the dwelling unit does not constitute a purchase;
• when a creditor exercises a security interest or secured right as part of a financing agreement, such as the seizure and foreclosure of a residential property; and
• when a non-Canadian purchases residential property for the purposes of development

Definition of “Control”

For the purposes of the prohibition vis a vis privately held corporations or privately held entities formed under the laws of Canada or a province and controlled by a non-Canadian, the Regulations define “control” as:

• direct or indirect ownership of shares or ownership interests of the corporation or entity representing 10% or more of the value of the equity in it, or carrying 10% or more of its voting rights, or
• control in fact of the corporation or entity, whether directly or indirectly, through ownership, agreement or otherwise

The Act and Regulations provide exceptions, including for the following persons:

Temporary residents studying in Canada, if they:

• are enrolled in a program of authorized study at a designated learning institution as defined in the Immigration and Refugee Protection Regulations, and
• have filed income tax returns for each of the 5 taxation years preceding the year in which the purchase was made, and
• have been physically present in Canada for a minimum of 244 days in each of the 5 calendar years preceding the year in which the purchase was made, and
• have not previously purchased a residential property in Canada while the prohibition is in effect, and
• purchase a property for a price not exceeding $500,000

Temporary residents working in Canada, if they:

• hold a valid work permit or are authorized to work in Canada, and
• have 183 days or more of validity remaining on their work permit or work authorization at time of purchase, and
• have not previously purchased a residential property in Canada while the prohibition is in effect

Refugees, if they:

• have been given refugee protection or are a protected person under the Immigration and Refugee Protection Act

Refugee claimants and individuals fleeing international crises, if they:

• have made a claim for refugee protection in accordance with the Immigration and Refugee Protection Act, if that claim has been found eligible and referred to the Refugee Protection Division; or
• have received temporary resident status in accordance with the Immigration and Refugee Protection Act based on humanitarian public policy considerations to provide a safe haven to those fleeing conflict

Accredited members of foreign missions in Canada, if they:

• hold a passport that has a valid diplomatic, consular, official, or special representative acceptance issued by the Chief of Protocol of Canada

Non-Canadians spouses and common-law partners, if they:

• purchase residential property in Canada with their spouse or common-law partner who is a Canadian citizen, a person registered under the Indian Act, a permanent resident or a non-Canadian for whom the prohibition does not apply.

Section 35 Rights – Indigenous People and Communities

The Regulations clarify that the prohibition doesn’t apply if it conflicts with the rights recognized and affirmed by Section 35 of the Constitution Act, 1982.

Section 35 recognizes and affirms the existing Indigenous and treaty rights of Indigenous peoples of Canada. These may include ownership rights to land, rights to occupy and use lands and resources, land to be set aside for First Nation use only, self-government rights and cultural and social rights.

Exceptions for Certain Types of Property

The Regulations include an exception for any residential property found outside of a Census Metropolitan Area (CMA) or Census Agglomeration (CA) as identified in Statistics Canada’s Standard Geographical Classification 2021.

Both CMAs and CAs are formed by 1 or more adjacent municipalities centered on a population centre, or the core.

A CMA must have a total population of at least 100,000 of which 50,000 or more must live in the core and a CA must have a core population of at least 10,000.

Find out if the property is in a Census Metropolitan Area or Census Agglomeration

• Census Metropolitan Areas must have a total population of at least 100,000, with 50,000 or more living in the core.
• Census Agglomeration must have a population of at least 10,000.

Enter the address of the property in the top left corner of the map page and we’ll tell you if it’s in a CMA or CA.
Enter the property address