Amendments to Prohibition on the Purchase of Residential Property by Non-Canadians Act’s Accompanying Regulations
The Canadian Government has announced amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying regulations. The aim is to provide more flexibility for businesses and newcomers who wish to buy residential property and support individuals and families seeking home ownership in Canada. These amendments came into effect on March 27, 2023.
Can work permit holders buy a residential property in Canada?
The amendments allow work permit holders to purchase residential property while working in Canada. They must have a work permit or authorization to work in Canada under the Immigration and Refugee Protection Regulations.
Work permit holders must have at least 183 days of validity remaining on their work permit or authorization at the time of purchase, and they should not have purchased more than one residential property. The current provisions on tax filings and previous work experience in Canada are being repealed.
Can Non-Canadian purchase vacant land zoned for residential and mixed use in Canada?
The government is repealing section 3(2) of the regulations. This means that the prohibition does not apply to all lands zoned for residential and mixed use. Vacant land zoned for residential and mixed use can now be purchased by non-Canadians and used for any purpose by the purchaser, including residential development.
Can Non-Canadians purchase residential property for development purposes in Canada?
The amendments allow non-Canadians to purchase residential property for development purposes. The exception is also extended to publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian.
What is the control threshold for private corporations in Canada?
The control threshold for privately held corporations or entities formed under the laws of Canada or a province and controlled by a non-Canadian has increased from 3% to 10%. This aligns with the definition of ‘specified Canadian Corporation’ in the Underused Housing Tax Act.
The recent amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying regulations have expanded the exceptions to allow non-Canadians to purchase residential property in certain circumstances. However, determining eligibility can still be a complex process that requires careful consideration of the specific requirements set out in the regulations.
If you’re considering purchasing a residential property in Canada, but unsure of your eligibility under the recent amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying regulations. Our real estate and immigration lawyers can help you understand the new regulations and determine your eligibility, so you can make informed decisions about your investment in the Canadian housing market. Contact us today to schedule a consultation.
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