Can Foreigners Buy Property in Canada? 2026 Rules Explained

Canada's foreign buyer rules have changed. Learn who can buy, which provinces have restrictions, and how to navigate the process.

Foreign Buyer Rules in Canada (2026)

Canada's relationship with foreign property buyers has evolved significantly. The Prohibition on the Purchase of Residential Property by Non-Canadians Act introduced restrictions, but there are important exceptions and nuances you need to understand.

Who Can Buy?

Canadian citizens, permanent residents, and temporary residents meeting certain criteria can purchase residential property without restrictions. International students who have been in Canada for at least 5 years and filed taxes can also purchase.

Provincial Taxes

British Columbia charges a 20% foreign buyer tax on properties in specified areas including Metro Vancouver. Ontario has a 25% Non-Resident Speculation Tax. These taxes apply on top of the purchase price and are a significant additional cost.

Exceptions

The foreign buyer ban does not apply to: commercial properties, recreational/vacation properties outside major urban areas (in some cases), and properties purchased by refugees or certain work permit holders.

Financing for Foreign Buyers

Some Canadian banks offer mortgages to non-residents, but typically require: a larger down payment (35-50%), Canadian credit history or international credit references, and proof of income. Interest rates may be slightly higher than those offered to residents.

The Buying Process

1. Determine your eligibility 2. Get pre-approved for financing 3. Find a property on Shopperden 4. Make an offer (with conditions) 5. Complete inspections 6. Close through a real estate lawyer 7. Register the property

Tax Obligations

Foreign owners must file Canadian tax returns on any rental income. When selling, non-residents face a 25% withholding tax on the sale proceeds. A clearance certificate from the CRA can reduce this. Capital gains are taxable at 50% of the gain.

Using Shopperden

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