published on 30 March 2023 @ 3:44 pm · COMMENT
Immigration-Related Exemptions from the Prohibition on the Purchase of Residential Property by Non-Canadians Act
Prohibition on the Purchase of Residential Property by Non-Canadians Act S.C. 2002 c. 10, s. 235.
Came into force effective January 1, 2023.
The Act prohibits non-Canadians from purchasing residential property (Permanent Residents are included in the definition of “Canadian”).
March 27, 2023, the Minister of Housing Diversity, and Inclusion announced amendments to the Act. The amendments came into force the same day, March 27.
Amendments:
- Amending the exception for temporary workers to enable certain work permit holders to purchase a residential property;
- Repealing the vacant land provision from the definition of residential property so that the prohibition does not apply to the purchase of vacant land zoned for residential and mixed use;
- Increasing the control threshold from 3% to 10% so that any corporation or entity with 10% or more direct or indirect ownership of shares or ownership interests by a non-Canadian is subject to the prohibition; and
- Introducing an exception for non-Canadians purchasing residential property for the purposes of development. The amendments also extend the exception currently applicable to publicly traded corporations under the Act, to publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian.
The Act allows foreign students to purchase property if they meet onerous conditions including the filing of income tax returns for each of the five taxation years preceding the year in which the purchase was made, inter alia.
Other, exempt non-Canadians, include:
Refugees who have been given refugee protection or are a protected person under the Immigration and Refugee Protection Act
Refugee claimants and individuals fleeing international crises, if they:
- have made a claim for refugee protection in accordance with the Immigration and Refugee Protection Act, if that claim has been found eligible and referred to the Refugee Protection Division; or
- have received temporary resident status in accordance with theImmigration and Refugee Protection Act based on humanitarian public policy considerations to provide a safe haven to those fleeing conflict.
Accredited members of foreign missions in Canada, if they hold a passport that has a valid diplomatic, consular, official, or special representative acceptance issued by the Chief of Protocol of Canada.
Non-Canadians spouses and common-law partners, if they purchase residential property in Canada with their spouse or common-law partner who is a Canadian citizen, a person registered under the Indian Act, a permanent resident or a non-Canadian for whom the prohibition does not apply.