On buying property in Canada, as of 2026, most foreigners cannot buy residential property in Canada until 1 January 2027 due to the Prohibition on the Purchase of Residential Property by Non-Canadians Act, enacted in 2023.
However, there are a few specific exemptions, such as a U.S. citizen purchasing a property in Canada with a Canadian citizen partner or spouse, work or study permit holders, and those purchasing properties outside the Census Metropolitan Areas and Census Agglomerations. The rules also differ by province.
This guide to buying property in Canada as a foreigner will explain who can buy, where, and any associated costs.
Buying Property in Canada – Key Takeaways
Note that this is not retroactive. The requirement to file a UHT return and pay the tax still applies to the 2022, 2023, and 2024 calendar years, including any applicable penalties and interest for late or missing filings.
If you already filed a UHT return for 2025 before this change took effect, the CRA will contact you by letter regarding the cancellation of that return, and no further action is needed on your part.
Buying Property in Canada – Quick Overview
| Can foreigners buy property? | Yes, with restrictions. The ban in effect until January 1, 2027 |
|---|---|
| Who is exempt? | Work/study permit holders, buyers with a Canadian spouse/partner, properties outside Census Metropolitan Areas |
| Does buying property give residency? | No |
| Average home price | CAD $702,079 |
| Down payment for non-residents | Minimum 35% of purchase price |
| Best places to buy property | Toronto, Vancouver, Calgary, Ottawa, Montreal (investment); Charlottetown, Regina, Edmonton, Winnipeg (affordable) |
| Land/Property Transfer Tax | Tiered %, one-time, varies by province |
| Property Tax | 0.5%–2.5% of assessed value, annual |
| Underused Housing Tax (UHT) | Eliminated for 2025 and beyond; 2022–2024 still owed |
Can you buy property in Canada as a foreigner?
In 2023, the Canadian Government passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which bans non-Canadian citizens from buying residential property in the country. The prohibition remains in effect until 1 January 2027.
The Non-Canadians Act is meant to reduce competition from foreign buyers and make residential homes more accessible for Canadian citizens.
However, some exemptions to this ban exist, which means that buying property in Canada as a foreigner is not impossible.
Who can buy property in Canada?
As a foreigner, you can buy property in Canada even with the Prohibition on the Purchase of Residential Property by Non-Canadians Act in place if you:
- Get property outside Census Agglomerations (CA) and Census Metropolitan Areas (CMA).
- Are in the country on a Study Visa, have filed tax returns for the past 5 years, have been physically present in Canada at least 244 days per year for 5 years, and are buying a property under $500,000 Canadian dollars.
- Are in the country on a Work Visa and have 183 days or more of validity remaining on your permit at the date of purchase, and must not have purchased more than one residential property
- Are buying a property with a Canadian citizen who is their common-law partner or spouse?
According to Canadian law, any non-Canadian who doesn’t satisfy the exemption conditions and proceeds to purchase a residential property directly or indirectly is liable to a fine of not more than $10,000.
Can buying property in Canada lead to residency?
No. Property ownership does not confer residency or immigration status in Canada. Property ownership is treated as a separate financial transaction and does not confer any immigration advantages in Canada. You must apply through a recognized entrepreneurial or business immigration pathway, such as Express Entry, or PNP.
Types of property in Canada
In Canada, properties fall into these categories: Residential, commercial, industrial, and agricultural types. This breakdown can help you draft your home buyer plan.
- Residential property: This includes any property where you can live, such as cottages, single-family homes, townhouses, condos, and other homes.
- Commercial property: This includes any business property, such as retail stores, office buildings, hotels, etc.
- Industrial property: These are places used for production and storage, such as warehouses, factories, data centers, and manufacturing plants.
- Agricultural property: These are rural investments, such as farms, ranches, and underdeveloped land.
Note: The Prohibition on the Purchase of Residential Property by Non-Canadians Act only restricts certain residential property types within Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs). So, not all residential property is affected by the ban. Buildings with four or more units, recreational properties outside major cities (CMAs/CAs), vacant land for new development, and all commercial property remain open to foreign buyers. However, provincial taxes like NRST or APTT still apply.
How to Buy Property in Canada as a Foreigner (Step-by-Step Guide)
If you are eligible, you can purchase property in Canada, here is a quick step-by-step guide on how the process works.
Check that you are eligible
Only a few categories of foreigners can purchase residential properties in Canada. Check that you satisfy the exemption requirements of the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
Get your documentation together
Once you are eligible, the next step is to gather your documentation. You will need a Canadian bank account, a good credit score in Canada, evidence of sufficient funds to cover the minimum 35% down payment, a valid ID, and proof of income/assets.
Get pre-approved for a mortgage to finance your purchase
You can finance the purchase through a mortgage from a Canadian bank or an independent mortgage broker. Securing a pre-approval certificate strengthens your offer. Some American buyers may also consider paying cash for their properties.
Obtain a non-resident Tax Number
As a non-Canadian, you’ll need to obtain an Individual Tax Number (ITN) using Form T1261 from the Canada Revenue Agency (CRA) to pay tax. This number is required for various tax-related transactions. Some of the taxes you may have to pay include Land Transfer Tax, Sales Tax, and Non-Resident Speculation Tax (NRST). Some of these taxes apply only in specific cases and also vary by province.
Consult with a real estate agent and lawyer
Engaging a real estate agent familiar with the Canadian market is highly recommended when buying a residential property in Canada. They can provide insights into local market trends and help you find properties that align with your preferences. Additionally, having a Canadian property lawyer review the purchase agreement and guide you through legal requirements is crucial.
Make an offer and sign the purchase agreement
Once the seller accepts your offer, both parties will sign the purchase agreement, and you will put down your deposit/down payment. The purchase agreement is legally binding, so it’s important your solicitor looks over everything before you sign. You will then finalize the details of your mortgage with your lender and undergo a property survey/inspection.
Close the deal
If the property survey flags any issues, you can return to the seller to renegotiate a lower price or arrange to have the issues fixed before the sale is finalized. The last stage includes finalizing and signing the sales contract, paying the balance, registering the property in your name, and getting the keys to your new property. Your solicitor will guide you through each step.
Note: Given that the price and other costs will be in Canadian dollars, you’ll need to consider currency exchange rates and legal fees. Fluctuations in exchange rates can impact the overall cost of your property purchase.
Documents Needed for Buying Property in Canada
The necessary documents needed to purchase property in Canada are:
- Personal identification (i.e., national ID, passport, PR card, residency permit, etc.)
- Financial reports (i.e., proof of funds, mortgage pre-approval letter, credit report, etc.)
- Property purchase (i.e., deposit receipt, purchase agreement, home appraisal report, home inspection report, etc.)
- Legal and tax documents (i.e., legal fees, a title deed, property insurance, tax-free savings account, etc.)
- Additional documentation for foreign buyers and temporary residents (i.e., work permit, proof of funds, visa, residency documents, financing approval from a Canadian bank, etc.
A mortgage advisor can help you navigate the process, understand additional fees, and find the best loan options for your financial situation.
Can non-residents get a mortgage from a Canadian bank?
Yes. Many Canadian banks offer mortgages to non-residents, but you may face stricter eligibility and affordability criteria than residents. Some of these criteria are:
- Down payment: You will need to make a minimum down payment of 35% of the property’s purchase price since you are not eligible for the government-backed mortgage insurance.
- Credit and income verification: The banks will verify your global income, international credit reports, and a Canadian bank account to process your mortgage application.
- Stress test: Just like residents, foreigners must pass the Canadian Mortgage Qualifier Tool, which assesses whether or not you can qualify for a home mortgage based on your income and expenses. This proves to the bank that you can afford the payments at the qualifying interest rate.
Many foreigners work with specialist mortgage brokers who find the right mortgage that works for their specific situation. These experts understand the Canadian real estate market and will devise a strategy tailored to you.
Taxes for Owning Property in Canada
Foreigners must also budget for property taxes and fees included in their property purchase. Here is a breakdown of all the taxes and associated fees you must pay when buying a property in Canada.
General taxes for all foreign buyers
| Tax | Applies to | How its calculated |
|---|---|---|
| Land/Property Transfer Tax | All buyers, one-time at closing | Tiered % of purchase price or assessed value, varies by province |
| Property Tax | All owners, annual | 0.5%–2.5% of assessed value, set by municipality |
| GST/HST | Buyers of new/substantially renovated homes only | 5% federal GST, or up to 13-15% HST in harmonized provinces. This does not apply to resale homes |
Provincial taxes for foreigners
| Province | Land Transfer Tax | Foreign Buyer Surcharge | Vacancy Tax | Notes |
|---|---|---|---|---|
| Ontario | Tiered, 0.5%-2.5% (+ Toronto Municipal LTT if applicable) | 25% (NRST) + 10% Toronto MNRST = up to 35% in Toronto | None provincial; Toronto Vacant Home Tax applies to vacant residential properties citywide | The 10% Municipal NRST took effect January 1, 2025, stacking on the 25% provincial NRST |
| British Columbia | Tiered, 1%-5% (Property Transfer Tax) | 20% Additional Property Transfer Tax in designated regions (Metro Vancouver, Fraser Valley, Capital Regional District, Nanaimo, Central Okanagan) | Speculation and Vacancy Tax: 3% (foreign owners/satellite families) / 1% (residents) as of 2026; Vancouver also has its own 3% Empty Homes Tax, stacking with SVT | A foreign owner with a vacant property in Vancouver now faces a combined 6% of assessed value annually across SVT + EHT |
| Alberta | None. Flat registration fee only (~$50 + $2 per $5,000 of value) | None | None | Alberta has no Non-Resident Speculation Tax like Ontario and BC, making it more accessible for foreign buyers |
| Quebec | Tiered “Welcome Tax,” 0.5%-3% (up to 4% in Montreal on homes over $3M) | None | None | No foreign buyer surcharge has been enacted, though it’s been the subject of policy discussion |
| Nova Scotia | ~1.5% base (Provincial + Municipal Deed Transfer Tax combined, varies by municipality) | 10% Non-Resident Deed Transfer Tax (as of April 2025) | Non-resident annual property tax: $2 per $100 of assessed value | Applies to any non-resident of Nova Scotia, including other Canadians, not just foreign nationals |
| New Brunswick | Flat 1% | None | None | One of the simpler/lower-cost provinces for foreign buyers |
BC Speculation and Vacancy Tax
As of 2026, BC’s Speculation and Vacancy Tax (SVT) rose to 3% annually for foreign owners and satellite families, higher than the previous 2% rate. This applies to the assessed property value, not the purchase price, and is charged each year the property remains non-exempt (i.e., not your principal residence or a long-term rental).
For example, a foreign-owned property assessed at CAD$600,000 would owe CAD$18,000 per year in SVT alone, before factoring in property tax, Vancouver’s separate Empty Homes Tax (3%, if applicable), or any other carrying costs.
Taxation for Americans Buying Property in Canada
For American citizens or residents, owning Canadian property triggers two ongoing US federal reporting requirements:
- FBAR (FinCEN 114): Required if your foreign financial accounts exceed $10,000 at any point during the year. This includes the Canadian bank account needed to complete your purchase.
- FATCA (Form 8938): Required for higher-value foreign assets, filed alongside your federal tax return.
The Canada-US Tax Treaty prevents most double taxation, but it does not eliminate these reporting obligations. Having a cross-border accountant familiar with both tax systems is recommended before completing any purchase.
Canadian Real Estate Market Overview
The average property price in Canada is about $688,955 to $702,079 CAD ($484,651 to $493,879 USD) as of May 2026. This is a 1.5% increase compared to the same month the previous year, and the first time the national average has crossed the $700,000 CAD mark in nearly two years. It is a great time for Canada real estate investment.
Home prices vary across provinces, with Ontario and British Columbia leading in pricing, while the Prairies and Eastern provinces record more modest and stable prices.
Average home prices in Canada in 2026
| Province | Average price (CAD) | Average price (USD) |
|---|---|---|
| British Columbia | $947,859 | $690,708 |
| Alberta | $543,602 | $396,125 |
| Saskatchewan | $381,100 | $277,709 |
| Manitoba | $396,900 | $289,222 |
| Ontario | $847,813 | $617,804 |
| Quebec | $563,050 | $410,297 |
| New Brunswick | $352,200 | $256,649 |
| Nova Scotia | $441,400 | $321,650 |
| Prince Edward Island | $383,200 | $279,239 |
| Newfoundland & Labrador | $349,900 | $254,973 |
| Nationwide | $702,079 | $511,608 |
Data Source: CREA
Types of property in Canada
In Canada, properties fall into these categories: residential, commercial, industrial, and agricultural types. This breakdown can help you draft your home buyer plan.
- Residential property: This includes any property where you can live, such as cottages, single-family homes, townhouses, condos, and other homes.
- Commercial property: This includes any business property, such as retail stores, office buildings, hotels, etc.
- Industrial property: These are places used for production and storage, such as warehouses, factories, data centers, and manufacturing plants.
- Agricultural property: These are rural investments, such as farms, ranches, and underdeveloped land.
Where to buy property in Canada?
According to the Global Citizens Solutions Digital Nomad Report, Canada is the 8th most popular destination for remote work. The best places to buy a property depend on your goals, whether you’re looking for an investment, a home, or rental income.
Best cities for real estate investment
These cities have strong job markets, rising property values, and a growing population. They are an excellent option for a non-resident looking to start a business or invest in luxury estates.
- Toronto, Ontario
- Vancouver, British Columbia
- Calgary, Alberta
- Ottawa, Ontario
- Montreal, Québec
The Canada citizenship by investment program offers a path to permanent residence for entrepreneurs and high-net-worth individuals.
Best cities for affordable homes
These cities tend to have lower monthly housing costs and good amenities.
- Charlottetown, Prince Edward Island
- Regina, Saskatchewan
- Edmonton, Alberta
- Winnipeg, Manitoba
It is best to consult with a mortgage advisor if you want a primary residence.
Best cities for rental income
Investors looking into the rental market can consider these areas:
- Vancouver, British Columbia
- Oakville, Ontario
- Burnaby, British Columbia
- Toronto, Ontario
- Richmond Hill, Ontario
Property Purchase Costs in Canada
Buying property encompasses more than just the sale price for foreign investors. Potential homeowners must consider various associated costs contributing to the overall financial commitment. These include:
- Property taxes: Asset tax returns are crucial and vary depending on the province and municipality. They fund local services such as schools, infrastructure, and public amenities.
- Legal fees: Engaging a real estate lawyer ensures a smooth and legally sound transaction. A real estate lawyer’s consultation fees cover tasks like title searches, contract reviews, and ensuring all documentation is in order.
- Down payment: Non-residents do not qualify for government-backed mortgage default insurance, so the tiered 5%-20% system available to Canadian residents does not apply. Foreign buyers must put down a minimum of 35% of the purchase price, regardless of the property’s value.
- Closing costs: These include title insurance and home inspection fees. These additional fees can add up, so it’s essential to budget for them.
- Mortgage payments: If you’re financing your purchase through a mortgage, your home loan mortgage payments will depend on factors like the mortgage rate, term, and amortization period. A mortgage advisor can research the market and recommend the best deals when buying land in Canada as a foreigner.
Financing a Property in Canada
For most buyers, a significant portion of the property price is financed through a mortgage from a Canadian bank based on taxable income. The banks in Canada offer mortgage financing to both citizens of Canada and foreign permanent residents with valid bank accounts in Canada. However, the terms and conditions may differ for the latter group.
Your creditworthiness, income, and down payment amount will influence the housing corporation’s interest rate. Canadian mortgage rates are relatively low, making homeownership attractive for foreigners and permanent residents with good credit histories.
The housing industry offers a relatively straightforward path to buy a home in Canada and start homeownership for citizens and permanent residents. However, housing corporations and the Canadian government issue specific considerations for non-Canadians and temporary residents. Temporary residents may need to apply for approval from the Canadian government to buy property.
Short-term Rental Restrictions in Toronto and Vancouver
When purchasing a rental property in Toronto and Vancouver, note that these cities restrict short-term rentals (STRs) to a host’s principal residence (the home you actually live in), not an investment property.
Toronto: STRs (under 28 days) are only permitted in your principal residence. Entire-home rentals are capped at 180 nights per year, with no limit on renting individual rooms. Hosts must register with the city and collect an 8.5% Municipal Accommodation Tax (temporarily raised through July 2026).
Vancouver: Hosts need a city business license, a provincial registration number, and must operate from their principal residence. The combined licensing costs run roughly CAD $1,185/year.
Since foreigners can’t claim a Canadian property as their principal residence while living abroad, a standard investment condo in either city cannot legally be rented on Airbnb or other similar platforms. Long-term or mid-term (28+ day) rental is the realistic option
Selling Your Canadian Property: The Section 116 Clearance Certificate
When a non-resident sells Canadian property, the buyer is legally required to withhold 25%-50% of the gross sale price and remit it to the CRA, unless the seller has obtained a Section 116 clearance certificate (Form T2062) in advance.
This process can take several months, so it should be initiated well before the property is listed. Without it, a large portion of your sale proceeds will be held back at closing. Note that the capital gains inclusion rate for non-residents remains 50% as the proposed increase to 67% was canceled.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is an advisory migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
