A new law prohibits non-Canadians from buying residential properties in Canada for a period of two years, starting January 1, 2023.
- The Act provides for a fine of $10,000 for anyone who knowingly assists a non-Canadian for these purposes and is found to have violated the Act.
- Does not apply to non-Canadians wishing to rent.
- The Act covers direct or indirect purchase (through a company, a trust or others).
There are several exceptions:
Exceptions for certain types of buildings
- The prohibition applies only to purchases of real estate located in a metropolitan area or a census agglomeration. A metropolitan area must have a total population of at least 100,000, with a core population of at least 50,000. A census agglomeration must have a core population of at least 10,000.
- According to the Act, residential buildings are buildings that contain no more than three dwellings. The Act does not prohibit the purchase of larger apartment buildings.
Temporary residents studying in Canada
- Among the criteria, these people must be enrolled in a designated study program, have filed the 5 tax returns preceding the purchase and have been present in Canada for at least 244 days in each of the last 5 years.
- The building must not cost more than $500,000
Temporary residents working in Canada
- Among the criteria, these people must have a valid work permit, have worked in Canada full-time for at least 3 years and have filed at least 3 tax returns.
Refugees, asylum seekers and people fleeing an international crisis
- This exception concerns people with certain asylum statuses.
Accredited members of foreign missions in Canada
- For diplomats and consular.
Non-Canadian spouses and common-law partners
- This exception concerns non-Canadians who buy a building with their Canadian spouse or partner.
Section 35 Rights – Indigenous Peoples and Communities
- This exception concerns indigenous peoples and communities.
This article is only a summary, it is imperative to inform yourself before any action. Do not hesitate to consult your tax specialist at Effisca Tax.
Source : CHMC