Canada: Prohibition on Purchase of Residential Property by Non-Canadians Forthcoming

The government of Canada has passed 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 measure is part of the federal government’s plan to make housing more affordable, particularly in large areas like Toronto and Vancouver. According to the act, the prohibition will not apply to Canadian permanent residents, or to certain Canadian temporary residents. However, it is not yet clear how the government will define temporary residents, or the classes of temporary residents exempted from the prohibition for purposes of the act; additional details and clarifications are expected and Fragomen will report on relevant developments.