Canada adds several layers of rules for buyers who are not citizens or permanent residents, and for owners who sell while living abroad. The federal purchase ban is set to end soon, but the provincial and city taxes on foreign buyers stay, and so does the tax withholding on non-resident sellers. Figures here were checked on October 29, 2026.
The federal ban ends January 1, 2027, unless Parliament extends it
The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops non-Canadians, and corporations they control, from buying homes of up to three units in census metropolitan areas and census agglomerations. The law repeals itself on January 1, 2027, the fourth anniversary of its start, and as of the latest consolidation (current to September 30, 2026) no further extension has been passed. Check again before you sign: a bill or budget measure could still change the date.
Until then, exceptions include work permit holders with at least 183 days left on their permit (one home only), some long-term students buying a home of $500,000 or less, protected persons and refugee claimants, and a non-Canadian buying with a spouse or partner who is a citizen or permanent resident. Vacant land is not covered. Breaking the ban can mean a fine of up to $10,000 and a court-ordered sale. Source: Justice Laws.
Ontario: 25% Non-Resident Speculation Tax, and 10% more in Toronto
Foreign nationals, foreign corporations and taxable trustees pay 25% of the value of a home with one to six units anywhere in Ontario, on top of land transfer tax. Nominees under the Ontario Immigrant Nominee Program, protected persons, and spouses of citizens or permanent residents buying together can be exempt if they move in within 60 days. A buyer who becomes a permanent resident within four years can claim a rebate within 180 days of becoming one. Source: Ontario.
Since January 1, 2025, Toronto adds a Municipal Non-Resident Speculation Tax of 10% of the price for foreign buyers of certain homes, on top of its own land transfer tax. Source: City of Toronto.
British Columbia: 20% transfer tax and a higher vacancy tax
Foreign entities and taxable trustees pay an additional 20% property transfer tax on their share of a home in Metro Vancouver and the Capital, Fraser Valley, Central Okanagan and Nanaimo regional districts. A BC Provincial Nominee buying a principal residence can be exempt, and a buyer who becomes a citizen or permanent resident within a year and lives there can apply for a refund. Source: Government of BC.
The Speculation and Vacancy Tax for foreign owners and untaxed worldwide earners is 3% for 2026 and 4% from 2027, against 1% for Canadians. Source: Government of BC.
Nova Scotia: 10% deed transfer tax for non-residents
Non-resident buyers of a home with up to three units, including vacant residential land, pay 10% of the greater of the price and the assessed value, for agreements signed after March 31, 2025. Buyers who move to Nova Scotia can apply for a refund once they prove residency, and since August 2026 they have 12 months to do so. Source: Government of Nova Scotia.
The federal Underused Housing Tax is over from 2025
The 1% Underused Housing Tax no longer applies for 2025 and later years; the change became law on March 26, 2026. Returns and tax for 2022 to 2024 are still owed, and late filing costs at least $1,000 for an individual. Source: Canada Revenue Agency.
Selling while you live outside Canada: section 116
A non-resident seller must tell the CRA about the sale on form T2062 before it closes or within 10 days after, and usually pays 25% of the gain as a deposit to get a certificate of compliance. Without the certificate, the buyer is liable for 25% of the price (50% for some property, such as a rental building’s depreciable part) and must send it to the CRA within 30 days after the end of the month of the purchase, so buyers’ lawyers hold that amount back from the seller. This applies even to a former principal residence. Source: CRA information circular IC72-17R6.
Run the numbers
Estimate the regular transfer tax with the land transfer tax calculator and add the foreign buyer tax for your province on top. Owners abroad who leave a home empty should check the vacant home tax calculator, and sellers can estimate the gain with the capital gains calculator. Newcomers who already live here should read the newcomers guide.
Try the land transfer tax calculator →
Official source
Justice Laws · Prohibition on the Purchase of Residential Property by Non-Canadians Act
This guide explains general rules. Confirm your figures with your lender, lawyer, or the official source before you act.