Foreign Buyer Ban - 2023 BC Real Estate News
Earlier in 2022, the Canadian government announced a two-year restriction on foreign buyers purchasing real estate in Canada. This was in an attempt to curb speculation buying and quickly-increasing home prices across the country. In addition, the restrictions are meant to allow Canadian buyers the opportunity to purchase real estate without the increasing foreign competition.
Beginning January 1, 2023 until Dec. 31, 2024, foreign buyers will be unable to purchase Canadian Real Estate with some exceptions. Exemptions from the ban include:
- Canadian citizens and permanent residents
- International students who meet certain requirements
- Workers who have worked and filed tax returns in Canada for at least three out of the four years prior to purchasing a property
- Diplomats, consular staff and members of international organizations living in Canada
- Foreign nationals with temporary resident status, including refugees
- Buildings containing more than three dwelling units, and recreational property such as cottages, cabins and other vacation homes
The Act defines Non-Canadians as:
- an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident
- a corporation that is incorporated otherwise than under laws of Canada or a province
- a corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada for which a designation under section 262 of the Income Tax Act is in effect and that is controlled by a person referred to in paragraph (a) or (b)
- a prescribed person or entity
- An entity that is pursuant to Canadian law but has non-Canadian ownership of 3% or more
of the equity value or voting rights of said entity/corporation.
This act does not apply to areas outside of a Census Agglomeration or Census Metropolitan Area. The Kelowna area is subject to this act - See Census Map
If you are a foreign buyer interested in purchasing Kelowna real estate, and unsure if any exemptions apply to you, it is important to seek qualified, experienced real estate representation and good legal advice.
For domestic buyers looking to purchase real estate, these restrictions may provide you with an ideal opportunity to buy within the next two years, especially if you are looking in a market segment popular with foreign buyers/investors.