Canada: Prohibition on Purchase of Residential Property by Non-Canadians Act - Regulations Published
December 22, 2022
As an update to the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which will prohibit non-Canadians from purchasing residential real estate directly or indirectly, for a two-year period beginning January 1, 2023, the government has published the implementing regulations. The regulation provides details on the classes of temporary residents exempted from the prohibition and the specific criteria of each, which include: students enrolled in designated learning institutions, provided they have filed income tax returns in Canada in each of the last five years, were physically in Canada for a minimum of 244 days in each of the last five years, the purchase price does not exceed CAD 500,000, and they have not purchased more than one residential property; and work permit holders or persons authorized to work in Canada full time, provided they worked in Canada for a minimum period of three years in the last four years preceding the purchase, filed all required income tax returns for a minimum of three of the four taxation years preceding the purchase, and have not purchased more than one residential property. Other exempt individuals include certain refugees and individuals who acquire property through divorce, separation, gift or death, among other exceptions. The prohibition also will not apply to Canadian permanent residents or persons registered under the Indian Act.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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