Canada has long been a dream destination for international investors, thanks to its stable economy, high quality of life, and beautiful landscapes. However, as of 2026, the rules for a non-resident property purchase in Canada have become quite specific. The Canadian government has introduced several measures to ensure housing remains available for people living and working in the country.
At Mavit Realty, we believe in giving you the full picture. While there are more hurdles today than in the past, owning a piece of Canada is still possible if you know where to look and how to navigate the taxes. This guide explains the current rules and the best ways to move forward.
The Federal Foreign Buyer Ban (Update for 2026)
The most important thing to know is the “Prohibition on the Purchase of Residential Property by Non-Canadians Act.” Initially launched in 2023, this ban has been extended and is currently in effect until January 1, 2027.
What is Banned?
Non-residents generally cannot buy “residential property” in major cities (known as Census Metropolitan Areas). This includes detached houses, semi-detached houses, and condominiums in places like Toronto, Vancouver, Montreal, and Calgary.
The Important Exceptions
Despite the ban, there are still ways for a non-resident to invest:
- Recreational Properties: You can still buy cottages, cabins, and vacation homes in many rural areas and resort towns. If you want a ski chalet in the mountains or a lakefront cottage, these are usually exempt from the ban.
- Work Permit Holders: If you have a valid work permit with at least 183 days remaining and have not purchased more than one residential property, you may be allowed to buy a home.
- International Students: Students who meet specific residency and high-school or university graduation requirements may also be exempt.
- Large Buildings: The ban generally does not apply to buildings with more than three dwelling units.
High Upfront Taxes for Non-Residents
If you find a property you are allowed to buy, you must be prepared for the “Foreign Buyer Taxes” at the provincial level. These are designed to discourage speculation and can add a significant amount to your purchase price.
Ontario (The NRST)
Ontario has a Non-Resident Speculation Tax (NRST) of 25%. This applies to the entire province. If you buy a cottage for $600,000, you will owe an extra $150,000 in tax immediately upon closing. In the city of Toronto, there is an additional 10% Municipal Tax, bringing the total extra tax for foreign buyers to 35%.
British Columbia
B.C. charges an Additional Property Transfer Tax of 20% in specified regions like Vancouver, Victoria, and Nanaimo. On top of this, B.C. has a “Speculation and Vacancy Tax” which, as of 2026, has increased to 3% to 4% annually for foreign owners who leave their properties empty.
Annual Taxes and Ongoing Costs
Owning a non-resident property in Canada comes with yearly responsibilities to the Canada Revenue Agency (CRA).
- The Underused Housing Tax (UHT): There is a federal 1% annual tax on the value of vacant or underused housing owned by non-residents. Even if you don’t owe any tax (for example, if you use the cottage yourself during the summer), you are still required to file a UHT return every year.
- Property Taxes: Just like residents, you will pay annual property taxes to the local municipality.
- Income Tax on Rent: If you decide to rent out your Canadian property, the CRA requires a 25% withholding tax on the gross rent. You can file a Canadian tax return at the end of the year to claim back expenses and potentially get a refund.
Financing for Non-Residents
Can you get a mortgage in Canada as a non-resident? Yes, but the requirements are stricter than for citizens.
- Down Payment: Most Canadian banks will require you to put down at least 35% of the purchase price in cash.
- Documentation: You will need to provide proof of your income from your home country, tax returns, and a reference letter from your local bank.
- Physical Presence: Some banks require you to be physically present in Canada at least once to open the necessary bank accounts for the mortgage payments.
Conclusion: Is It Worth It?
Buying property in Canada as a non-resident in 2026 requires careful planning and a larger budget for taxes. However, for those looking for a safe “haven” for their wealth or a beautiful vacation home in the Canadian wilderness, the long-term benefits are still there. Canada’s land is vast, and its legal system is one of the most secure in the world.
At Mavit Realty, we specialize in helping international clients navigate these complex rules. We work with specialized lawyers and tax experts to ensure your purchase is legal, safe, and profitable.
Frequently Asked Questions (FAQs)
1. Does buying a house give me a visa to live in Canada?
No. Owning property does not grant you any residency or immigration status. You still need to follow the normal visa and immigration processes to live in Canada long-term.
2. Can I buy vacant land and build my own house?
Yes, purchasing vacant land is generally permitted. However, if the land is in a major city, the ban on building a residential home may still apply to you.
3. What happens when I sell my Canadian property?
When a non-resident sells, the CRA typically withholds 25% of the total sale price until they calculate your actual capital gains tax. Once you settle your tax bill, the remaining money is released to you.
4. Do I need a Canadian lawyer?
Yes. In Canada, you cannot close a real estate deal without a lawyer (or a notary in Quebec). They handle the transfer of funds and the registration of the title in your name.
5. Are there any “tax-free” areas in Canada?
Provinces like Alberta, Saskatchewan, and Manitoba do not have a provincial foreign buyer tax. If you are looking to avoid the 20-25% upfront taxes, these provinces are excellent options to explore.
Are you interested in exploring the Canadian market from abroad? Contact Mavit Realty today!
