Foreign Buyers in Canada: Understanding the Ban and Provincial Tax Differences

When foreigners look for a home in Canada, one of the most common questions from those holding a work permit or relocating from Korea or another province is about the Foreign Buyer Ban and the additional provincial taxes for foreign or non-resident buyers. Because tax rules differ by province, many assume that the same foreign buyer taxes applied in British Columbia (BC) or Ontario (ON) also apply in Nova Scotia. In reality, that is not the case, and some people miss opportunities to purchase a home—even when they are eligible—because they mistakenly believe they cannot buy until they obtain permanent residency. In this article, I will first give a quick overview of the federal Foreign Buyer Ban, and then compare the different provincial rules on additional foreign buyer taxes. Federal Law: Foreign Buyer Ban - Period: January 1, 2023 – January 1, 2027 - Who is affected: Non-Canadians (both individuals and corporations who are not citizens or permanent residents) - Restriction: Prohibition on purchasing residential properties with up to 3 dwelling units (single-detached, semi-detached, condo, etc.) located within CMA/CA census metropolitan or agglomeration areas Exemptions: - Work permit holders: Must have at least 183 days remaining on their permit as of closing date; limited to one property - Students: Must have filed taxes in the past 5 years, resided in Canada for at least 244 days per year, property value under $500,000, and limited to one property - Acquisition by inheritance, divorce settlement, or gift - Purchase for development purposes or vacant land - Properties outside CMA/CA designated areas (e.g., smaller towns in Nova Scotia) Note: Mortgage approval conditions and down payment requirements may vary for work or study permit holders. Consult a mortgage specialist for specific guidance. Provincial Foreign Buyer Taxes Ontario - NRST (Non-Resident Speculation Tax): 25% applied province-wide - Toronto: Additional 10% starting 2025 - Application: Tax applies to the full purchase price, even if jointly purchased with a Canadian citizen or permanent resident - Rebate: Available if permanent residency is obtained within 4 years, buyer occupies the home within 60 days, and maintains it as a primary residence - Exemption: Ontario Immigrant Nominee Program (OINP) approval British Columbia (BC) - Foreign Buyer Property Tax: 20% in designated regions (Vancouver, Fraser Valley, Okanagan, etc.) - Rebate: Available if permanent residency or citizenship is obtained within 1 year, the buyer moves in within 92 days, and resides for at least 1 year - Exemption: BC Provincial Nominee Program (PNP) approval Nova Scotia - No foreign buyer tax - Non-Resident Deed Transfer Tax: 10% when buyers live outside Nova Scotia - Exemption/Rebate: If the buyer relocates to Nova Scotia within 6 months and provides proof of residency, the tax may be refunded Quebec - No foreign buyer tax - Note: Regular land transfer duty applies to all buyers equally Manitoba, Saskatchewan, Alberta - No additional foreign buyer tax - Land transfer tax systems exist but do not impose extra costs specifically on foreign buyers New Brunswick, Prince Edward Island (PEI), Newfoundland & Labrador - No foreign buyer tax - Only regular land transfer taxes or deed transfer fees apply Yukon, Northwest Territories (NWT), Nunavut - No foreign buyer tax - No discriminatory taxation for foreign buyers *Disclaimer This article is based on personal research as of August 22, 2025 and does not carry legal authority. For actual purchases or contracts, always seek legal advice and review by a qualified lawyer.