Purchase of Property By Non-Canadians
The Government of Canada has passed a new law to help make homes more affordable for people living in Canada.
The prohibition on the purchase of Resodential Property by Non- Canadians Act, prevents non-Canadians from purchasing residential property in Canada for 2 years.
The Act applies to non-Canadians, including Corporations and entities not listed on the stock exchange in Canada and controlled by non-Canadians.
It does not apply to Canadians, Permanent residents or temporary residents who meet the exception criteria outlined in the regulations and amendments.
Who Can Buy
1- Temporary Residents
if they are enrolled in a program of authorized study at a designated learning institution, as defined in section 211.1 of the Immigration and Refugee Protection Regulations, if:
(i) they filed all required income tax returns under the Income Tax Act for each of the five taxation years preceding the year in which the purchase was made,
(ii) they were physically present in Canada for a maximum of 244 days in each of the five calendar years preceding the year in which the purchase was made,
(iii) the purchase price of the residential property does not exceed $500,000, and
(iv) they have not purchased more than one residential property.
2- Work Permit Holders (Section 2 of the Immigration and Refugee Protection Regulations, or are authorized to work in Canada under section 186 of those regulations) if:
(i) they have not purchased more than one residential property,
(ii) they have 183 days or more validity remaining on their work permit or work authorization at the time of purchase.
3- a corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada and there is not a direct or indirect foreign 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.
4- an Individual who is a non-Canadian and who purchases residential property in Canada with their spouse or common-law partner if the spouse or common law partner is a Canadian Citizen, person registered as an Indian under the Indian Act, permanent resident or a non-Canadian for whom the prohibition does not apply.
Types of Property Allowed to be Purchased by Non-Canadians
1- Residential Property for the purposes of development.
2- a detached house or similar building containing more than three dwelling units.
3- Vacant Land Zoned for residential and mixed use.