The Canadian Government has passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the Act), which comes into effect on 1 January 2023, and is currently scheduled to be in place for two years. The policy intent behind the Act is an effort by the Canadian Government to cool the housing market and prevent foreign investors from purchasing residential property in Canada when they have no intention to settle in Canada. The regulations confirm prohibition for non-Canadian citizens or permanent residents from directly or indirectly purchasing property in Canada unless they meet certain exceptions. The Act prohibits foreign nationals in Canada from purchasing property, unless they meet one of the limited exceptions.
A Tax Alert prepared by EY Law LLP, and attached below, provides additional details.
