As of January 1, 2023, foreign nationals will be banned from purchasing residential properties in Canada. The federal government has announced a series of exemptions to this rule, including exemptions for international students and work permit holders who meet certain conditions and intend to reside in Canada long-term. The specific details of these exemptions are as follows:
- International students (with valid student visas): Must be enrolled in an approved program at a designated educational institution; have filed personal income tax returns in the 5 years preceding the purchase of the property and have resided in Canada for at least 244 days per year; can only purchase one property with a value of no more than CAD 50,000.
- Foreign workers (with valid work visas): Have worked full-time (as defined in the Immigration and Refugee Protection Act as at least 30 hours per week) for at least 3 years out of the 4 years preceding the purchase of the property; have filed personal income tax returns for at least 3 of the 4 years preceding the purchase of the property; can only purchase one property, with no value limit.
- Diplomats, members of international organizations, and trade representatives are exempt from this ban.
- Refugees protected under the Immigration and Refugee Protection Act are exempt from this ban.
- Civil partners of Canadian citizens or permanent residents who have cohabited for at least one year are exempt from this ban.
- Properties with three or more units and recreational properties, such as vacation homes and cottages, are not included in the ban on purchases.
As previously announced, foreign individuals and foreign companies are banned from buying residential properties in Canada. Canadian companies controlled by foreign individuals or companies, such as those with over 3% foreign ownership or indirect foreign control through Canadian proxies, are also banned from buying residential properties. Foreign individuals who violate the ban and those who help foreign individuals violate the ban will be fined up to CAD 10,000. The court also has the power to order foreign individuals to sell their property. Data shows that foreign buyers account for less than 4% of the Canadian housing market, so it remains to be seen whether this ban will impact housing prices.