Buying property in Canada as a foreign buyer

When you buy a home in Canada you pay a provincial land transfer tax, and in Toronto a municipal one as well. On a C$800,000 home in Ontario outside Toronto it's CA$12,475. Foreign buyers face two much bigger hurdles. First, a federal ban stops most non-Canadians buying homes in urban areas until 1 January 2027. Second, where they can buy, provinces add foreign buyer taxes: 25% across Ontario and 20% in parts of British Columbia.

Key points

• Ontario land transfer tax applies everywhere in the province. Toronto adds a municipal land transfer tax at matching rates up to C$3 million, with higher rates above that.
• BC property transfer tax is 1% on the first C$200,000, 2% up to C$2 million and 3% above that, plus a further 2% on homes over C$3 million.
• First-time buyer rebates and exemptions need you to be a Canadian citizen or permanent resident.
• Ontario's Non-Resident Speculation Tax is 25%. Toronto adds a 10% municipal tax for foreign buyers. BC's additional property transfer tax is 20% in specified areas.
• The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act is in force until 1 January 2027, with exceptions.

Can foreigners buy property in Canada?

For now, mostly not in cities. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on 1 January 2023 and was extended to 1 January 2027. It applies to:

• residential property with up to three dwelling units, including houses, semis and condo units
• property in Census Metropolitan Areas and Census Agglomerations, which covers the cities and larger towns where most people live

It doesn't apply to vacant land or to property outside those areas. Companies and other entities controlled by non-Canadians are caught too. Breaking the ban can lead to a fine of up to C$10,000 and a court-ordered sale.

Main exceptions include:

• Temporary workers with a valid work permit and at least 183 days left on it, who haven't bought before under the ban
• Students who meet strict conditions, including five years of tax filing and time in Canada, a price of C$500,000 or less, and no earlier purchase
• Refugees and protected persons, and some people granted temporary residence on humanitarian grounds
• Spouses and common-law partners buying together with a Canadian citizen, permanent resident or another exempt person
• Accredited diplomats, and homes received through inheritance, divorce or a gift

The ban is due to end on 1 January 2027 unless the government extends it again. Check the current position with a Canadian lawyer before you make an offer. Even after the ban ends, the provincial foreign buyer taxes below still apply.

Land transfer tax in Ontario

Ontario charges land transfer tax at:

• 0.5% up to C$55,000
• 1% from C$55,000 to C$250,000
• 1.5% from C$250,000 to C$400,000
• 2% above C$400,000
• 2.5% above C$2 million, for land with one or two single-family homes

First-time buyer refund in Ontario

Eligible first-time buyers get a refund of up to CA$4,000, which means no tax on the first C$368,000 of the price. You must be at least 18, never have owned a home anywhere in the world, and move in within nine months. You must also be a Canadian citizen or permanent resident, or become one within 18 months of registration and then apply.

Example. A first-time buyer pays CA$8,475 on a C$800,000 home, against CA$12,475 for other buyers.

Toronto land transfer tax

In the City of Toronto you pay both the Ontario tax and the Municipal Land Transfer Tax (MLTT). For homes, the MLTT matches Ontario's rates up to C$3 million. From 1 April 2026 the City charges higher rates above that: 4.4% from C$3 million to C$4 million, rising to 8.6% above C$20 million. Our calculator doesn't model the luxury rates, so for homes above C$3 million check the City's figures.

First-time buyers can get up to CA$4,475 back on the Toronto tax, as well as the Ontario refund. The conditions are similar to Ontario's, including citizenship or permanent residence. On a C$1,000,000 Toronto home a first-time buyer pays CA$12,475 in Ontario tax and CA$12,000 in Toronto tax.

BC property transfer tax

British Columbia charges property transfer tax on the fair market value:

• 1% on the first C$200,000
• 2% from C$200,000 to C$2 million
• 3% above C$2 million
• a further 2% on the residential part of the value over C$3 million

First-time buyers in BC. Since 1 April 2024, eligible first-time buyers pay no tax on the first C$500,000 of a home worth up to C$835,000, with a partial exemption up to C$860,000. You must be a Canadian citizen or permanent resident. You must also have lived in BC for a year before buying or filed two BC tax returns in the last six years. Our calculator shows BC tax before this exemption.

Taxes for foreign buyers

Ontario Non-Resident Speculation Tax (NRST)

The NRST is 25% of the price of a home with one to six single-family units anywhere in Ontario. It's paid by foreign nationals (people who aren't Canadian citizens or permanent residents), foreign corporations and some trustees. If any buyer on the deal is a foreign national, it applies to the whole price. There's an exemption for some provincial nominees, protected persons and spouses of citizens. A rebate is available if you become a permanent resident within four years.

Toronto Municipal Non-Resident Speculation Tax

Since 1 January 2025, the City of Toronto has also charged foreign buyers a 10% municipal tax on top of the MLTT and the Ontario NRST. Our calculator doesn't include this yet, so add it yourself for a Toronto purchase.

BC additional property transfer tax

Foreign nationals, foreign corporations and some trustees pay an extra 20% on residential property in Metro Vancouver, the Capital Regional District, the Fraser Valley, Central Okanagan and Nanaimo. BC provincial nominees buying a main home can be exempt.

Common mistakes

• Assuming the ban has ended. Check the date and the exceptions before you make an offer.
• Counting on a first-time rebate before you're a permanent resident. Ontario and Toronto let you apply within 18 months if you become one, but you pay the tax first.
• Forgetting Toronto's second tax. Toronto buyers pay land transfer tax twice, plus 10% more if they're foreign.
• Adding a foreign co-buyer. In Ontario, one foreign buyer can make the NRST apply to the whole price.

Tax back home

Buying abroad can create tax to pay and forms to file where you live, not just where you buy.

• UK residents are generally taxed on their worldwide income and gains. Rent from a home abroad goes on your Self Assessment return, and when you sell you may owe UK Capital Gains Tax. You can usually claim Foreign Tax Credit Relief for tax already paid in the other country, so the same income isn't fully taxed twice.
• US citizens and green-card holders are taxed on worldwide income wherever they live. Report foreign rental income on your US return. If your foreign bank accounts together go over $10,000 at any time in the year, file an FBAR (FinCEN Form 114), and you may also need Form 8938 (FATCA) if your foreign financial assets pass its thresholds. A home you own directly isn't reported on Form 8938, but the foreign account you pay through may be.
• Everyone else: check how your country taxes foreign rent and gains, and whether it has a tax treaty with the country you're buying in.

Plan this before you buy, ideally with a tax adviser who knows both countries.

Work out your own figures

Use our calculator for Ontario, Toronto or British Columbia to see land transfer tax, any foreign buyer tax and legal costs for your price. Then confirm the details with a Canadian real estate lawyer.