On June 23, 2022, the Canadian federal government passed the Prohibition on the purchase of residential property by non-Canadians Act. Coming into force January 1, 2023, this Act:
- Does not apply to Canadian citizens and permanent residents.
- Applies to non-Canadians directly or indirectly purchasing residential property in Canada for a period of two years.
- Applies to residential property, including detached houses or similar buildings of one to three dwelling units, as well as parts of buildings such as semi-detached houses, condominium units, or other similar premises.
- Applies to direct or indirect purchases of residential property, including purchases made through corporations, trusts or other legal entities.
- Establishes penalties for non-compliance applicable to non-Canadians, as well as any person or entity knowingly assisting a non-Canadian in violating the prohibition.
Read original statement from CREA here.
More details are yet to be released by the Canadian government, stay tuned!
UPDATE: Check out our follow-up blog, UPDATE: BAN ON FOREIGN BUYERS
Contact us for more information and insight about this announcement.