I’ve spent a lot of words on the idea of a second property somewhere warmer for the winter months. I’d use it myself, rent it when I’m not there, and get to know the community around it instead of treating it as a line on a spreadsheet. My second real estate investment post ranks that idea against the other places I could put the capital. Every time I bring it up, someone tells me speculation is what’s pushing real estate prices higher.
That’s partly true. Speculation does move markets, and I still don’t recognize my plan as such. Rather than defend myself again, I turned the question around and looked at the group Canadian policy treats as the speculators: foreign real estate buyers in Canada. Can a non-resident still buy here, and where? What does it cost to buy and to hold? When does the ban end? And what does our ban do to Canadians who want to buy abroad? The last answer surprised me most.
The Speculation Charge Deserves a Fair Look
Start with what the evidence supports. Statistics Canada’s first release from the Canadian Housing Statistics Program put non-resident owners at 3.4% of residential properties in the Toronto metropolitan area and 4.8% in Vancouver as of mid-2017. MoneySense reported in October 2026 that non-residents owned about 4.2% of Vancouver properties and 3% in the Greater Toronto Area by 2022, citing an industry source I couldn’t match to a Statistics Canada table.
Those are non-resident ownership shares, meaning owners based outside Canada. They aren’t the same as foreign nationals living here. Statistics Canada found that non-permanent residents, people in Canada on work, study or refugee-claimant status, made up under 1% of homeowners at the start of 2022, and about 0.2% in both Toronto and Vancouver. The share of sales bought by foreigners, the share of housing held by investors and the share of homes left vacant are three more measurements again. None of them tells you what the ban did to prices.
Prices have too many drivers to hand the credit or the blame to foreign buyers. CMHC said in June 2025 that Canada needs up to 4.8 million more homes over the next decade, or 430,000 to 480,000 a year, and starts reached 259,028 in 2025. MoneySense’s read is that higher interest rates did far more to cool the market than the ban did. Population growth and domestic investors are other important factors, and I haven’t found a source that splits price movements cleanly among all of them, so I won’t pretend to.
None of this makes my plan neutral. Demand is demand. A buyer who rents a unit or stays in it for part of the year still competes for a limited supply of property in that town, and the people who live there will make the same argument about me that my critics make about foreign buyers here.
What separates speculation from the investing I’m describing is primarily the investment thesis. Speculation generally involves taking financial risk in anticipation of future price movements, often with resale gains as the principal objective. It doesn’t necessarily require leaving a property vacant. A long-term investor can still contribute to higher prices, and a rental property can be both an investment and a source of housing.
I host my Lake Huron cottage on Airbnb, and my first month of hosting is public. A second property would run on the same logic: occupied by me for part of the year, rented the rest, and held for years. That provides actual use rather than simply parking capital. It doesn’t erase my effect on local prices, and I’d rather say so than hide behind a definition.
What the Foreign Buyer Ban Actually Says
This section follows the Prohibition on the Purchase of Residential Property by Non-Canadians Act and its Regulations. CMHC’s guidance explains how the rules operate, although the legislation and regulations remain the governing authorities.
Section 4 of the Act prohibits a non-Canadian from purchasing, directly or indirectly, residential property covered by the legislation. A non-Canadian includes an individual who isn’t a citizen, a person registered under the Indian Act or a permanent resident, a corporation formed outside Canada, or certain unlisted Canadian entities controlled by non-Canadians. Under the Regulations, the corporate control threshold includes ownership representing 10% or more of equity value or voting rights.
Residential property includes a detached or similar building with no more than three dwelling units, or a separate unit such as a semi-detached home, rowhouse or condominium unit. Property outside a census metropolitan area or census agglomeration is carved out by the Regulations.
CMHC describes census metropolitan areas as urban regions with populations of at least 100,000, including at least 50,000 in the core, while census agglomerations have populations of at least 10,000. The boundaries are statistical, not simply municipal, and CMHC provides a geographic lookup.
CMHC also confirms that the Act doesn’t prohibit buying an apartment building with four or more dwelling units as a single property. That doesn’t mean individual condominium units inside larger buildings are exempt. A condominium unit can still be covered regardless of how many units the building contains.
The penalties are real. Under section 6, a non-Canadian who breaches the ban, or anyone who knowingly helps one, faces a fine of up to CAD 10,000 on summary conviction. Officers and directors of corporations can also be liable in specified circumstances.
Section 7 permits a superior court to order a sale following a conviction, subject to the statutory requirements. The regulations limit what the non-Canadian can receive from that sale. Section 5 says a breach doesn’t itself invalidate the purchase.
When the Ban Started and When It Ends
The Act came into force on January 1, 2023. It was originally set to be repealed on January 1, 2025.
The government announced a two-year extension in February 2024, and Bill C-69, which received royal assent on June 20, 2024, amended the repeal provision. The scheduled expiry became the fourth anniversary of the Act’s commencement, or January 1, 2027.
That remains the scheduled expiry reflected in CMHC’s published guidance as of this review.
The government’s intentions beyond that date remain uncertain. Finance Minister Francois-Philippe Champagne was reported in October 2026 as saying Ottawa was examining its options.
Housing Minister Gregor Robertson previously indicated that the government would review the policy and examine approaches used elsewhere, including Australia’s treatment of foreign purchases of new housing.
Economists have also questioned whether the ban should continue unchanged. Some favour allowing it to expire, while others have suggested permitting foreign investment in new construction.
I’d treat January 1, 2027 as the scheduled legislative date, not a guarantee of what the rules will look like afterward.
Where Foreign Real Estate Buyers in Canada Can Still Buy
Federally, a non-Canadian can generally buy outside a census metropolitan area or census agglomeration, acquire a qualifying building containing four or more dwelling units, or purchase residential property for genuine development purposes.
The Regulations also exclude certain acquisitions involving gifts, death, divorce, separation and specified other circumstances. Renting a dwelling for personal occupancy is not a prohibited purchase.
Status matters as well.
Permanent residents and Canadian citizens aren’t caught by the prohibition. A qualifying work permit holder can purchase one residential property if at least 183 days remain on the permit or work authorization at the time of purchase.
International students face much stricter conditions, including five years of Canadian tax filings, specified physical-presence requirements and a purchase-price ceiling of CAD 500,000.
A non-Canadian purchasing with a qualifying spouse or common-law partner may be exempt. Protected persons, certain refugee claimants and accredited diplomats have separate exemptions.
The federal ban is only one layer, and it uses a different test than the provinces do.
Four ideas get mixed up in this debate.
Foreign nationality concerns citizenship and related legal status. It drives the federal prohibition and Ontario’s speculation tax.
Provincial residency concerns where a person lives under the relevant provincial legislation. It matters in Nova Scotia, Prince Edward Island and Quebec, although the definitions and consequences differ.
Immigration status concerns permits and protected categories. It determines whether certain federal exemptions apply.
Canadian income tax residency concerns a person’s residential ties and circumstances under income tax law. It is not interchangeable with the ownership tests.
A Canadian citizen living in Dubai isn’t automatically a foreign buyer under the federal ban or Ontario’s speculation tax. But that person could be treated as a non-resident under provincial rules elsewhere.
Even a Canadian citizen living in Ontario can be a non-resident for certain provincial property rules.
| Province | Additional acquisition taxes or ownership rules | Who may be affected |
|---|---|---|
| British Columbia | 20% additional property transfer tax in specified regions | Foreign entities and taxable trustees |
| Alberta | Foreign ownership restrictions generally limit foreign persons to two parcels containing no more than 20 acres of controlled land, subject to exemptions | Foreign citizens and foreign-controlled entities |
| Saskatchewan | Farmland ownership restrictions generally limit non-qualified owners to 10 acres | Persons and entities not qualifying under provincial farmland legislation |
| Manitoba | Foreign ownership restrictions generally limit non-Canadians to 40 acres of farmland without an exemption | Non-Canadian individuals and certain foreign-controlled entities |
| Ontario | 25% Non-Resident Speculation Tax province-wide; Toronto adds 10% | Foreign nationals, foreign corporations and taxable trustees |
| Quebec | Authorization may be required for certain non-residents acquiring agricultural land | Buyers who do not satisfy the applicable Quebec residency requirements |
| New Brunswick | No comparable general provincial foreign-buyer surcharge identified in the reviewed material | Federal restrictions remain relevant |
| Nova Scotia | 10% Non-Resident Provincial Deed Transfer Tax on qualifying residential transfers | Buyers who do not meet Nova Scotia residency requirements |
| Prince Edward Island | Landholding restrictions, including approval requirements above specified acreage or shoreline limits; separate non-resident property taxation | Non-residents, including Canadians living in other provinces |
| Newfoundland and Labrador | No comparable general provincial foreign-buyer surcharge identified in the reviewed material | Federal restrictions remain relevant |
This is a comparison of the principal additional restrictions, not an exhaustive statement of provincial real estate law.
The farmland restrictions in Alberta, Saskatchewan, Manitoba and Quebec generally concern specified agricultural or controlled land. They shouldn’t be mistaken for a prohibition on buying an ordinary urban home.
British Columbia’s additional property transfer tax applies only in designated areas, not throughout the province.
Nova Scotia’s non-resident deed transfer tax is particularly relevant to Canadians considering recreational properties. It applies to qualifying residential properties containing three dwelling units or fewer, with exemptions and special rules.
Prince Edward Island is another example where being Canadian doesn’t necessarily mean being treated as a local resident.
The province’s landholding rules can require approval where a non-resident’s holdings exceed five acres or 165 feet of shore frontage. Its separate non-resident property tax also requires attention. The 2026 provincial budget proposed changes to that tax, so the enacted rate and applicable assessment year should be confirmed before purchase.
The practical lesson is simple: a property can be outside the federal prohibition and still face meaningful provincial restrictions or additional costs.
The Taxes at Closing
Being allowed to buy and being able to afford it are different questions.
Take a CAD 700,000 home.
Ontario’s Non-Resident Speculation Tax is 25% of the consideration, so CAD 175,000. In Toronto, the additional 10% municipal tax that took effect January 1, 2025 brings the combined foreign-buyer surcharge to CAD 245,000.
That is before ordinary provincial and municipal land transfer taxes, legal fees and other closing costs.
British Columbia’s 20% additional property transfer tax on a fully foreign-owned purchase in a designated region comes to CAD 140,000.
Nova Scotia’s 10% non-resident deed transfer tax comes to CAD 70,000 if the buyer is subject to the tax and CAD 700,000 is the applicable taxable value.
These taxes don’t necessarily disappear because the federal prohibition doesn’t apply to a particular transaction.
A foreign buyer qualifying for a federal exemption must still consider provincial and municipal taxes separately.
Ontario offers a rebate in specified circumstances where a foreign buyer becomes a permanent resident within four years of acquiring the property. But the rebate isn’t automatic. Ownership, occupancy, filing deadlines and other requirements apply.
An eligible Ontario application generally must be submitted within 180 days of obtaining permanent residency. Toronto administers its own municipal rebate, with a separate 90-day application deadline.
These are significant distinctions when the potential tax bill reaches six figures.
The taxes are intended to discourage certain forms of foreign purchasing and support housing-policy objectives. Whether they achieve those objectives is a separate empirical question.
As a Canadian citizen buying alone or exclusively with other Canadian citizens or permanent residents, I wouldn’t pay Ontario’s NRST.
But the same protection doesn’t apply everywhere.
If I bought a cottage in Nova Scotia or Prince Edward Island while living in Ontario, provincial non-resident rules could apply to me.
That is a smaller version of the point I’m making about Italy.
Vacant Property Fees and Levies
The purchase taxes are a one-time gate. The vacancy levies recur every year, and plenty of online guidance on them is out of date.
The federal Underused Housing Tax no longer applies to the 2025 and subsequent calendar years.
The CRA confirms that Bill C-15 received royal assent on March 26, 2026, eliminating the requirement for affected owners to file returns or pay the tax for those years.
The filing and payment obligations for 2022, 2023 and 2024 remain relevant.
What remains is provincial and municipal.
These taxes generally focus on property use and occupancy, although British Columbia also differentiates tax rates by ownership and income circumstances.
They differ from foreign buyer taxes paid at closing and from ordinary property taxes charged regardless of occupancy.
| Tax | Rate and base | General vacancy test | Rental treatment | Declaration requirements |
|---|---|---|---|---|
| BC Speculation and Vacancy Tax | For the 2026 tax year: 1% of assessed value for most Canadian citizens and permanent residents; 3% for foreign owners and untaxed worldwide earners | Property is not a principal residence, qualifying rental or otherwise exempt | Qualifying rental occupancy generally requires at least six months in eligible tenancy periods | Annual declaration generally due March 31 of the following year |
| Vancouver Empty Homes Tax | 3% of assessed taxable value under the published 2025 reference-year rules | Not a principal residence and insufficient qualifying occupancy | Qualifying rental periods generally must be at least 30 consecutive days and total six months | Annual declaration required |
| Toronto Vacant Home Tax | 3% of Current Value Assessment | Vacant for six months or more during the taxation year, subject to exemptions | Qualifying occupancy can include tenants under written agreements meeting the city’s requirements | Annual declaration generally due April 30 |
| Ottawa Vacant Unit Tax | Starts at 1% of assessed value and increases for consecutive vacant years, to a maximum of 5% | Generally more than 184 days without qualifying occupancy | Qualifying tenancies and specified exemptions apply | Annual declaration required; late fees and penalties may apply |
These are summaries of the principal rules. The relevant tax year, exemption conditions and declaration deadlines must be checked separately.
British Columbia’s 2026 rates apply to property use during the 2026 calendar year. Declarations made in early 2026 generally concerned the 2025 tax year, when lower rates applied.
The distinction matters because a current government page may describe both the prior year’s filing process and the following year’s tax rates.
Vancouver’s Empty Homes Tax and British Columbia’s provincial speculation and vacancy tax are separate programs. An owner can potentially have obligations under both.
Toronto’s Vacant Home Tax applies to owners regardless of citizenship, subject to its rules and exemptions. A missed declaration can lead to the property being treated as vacant.
Ottawa also requires annual occupancy declarations. Its tax escalates for consecutive years of vacancy, and the city provides specific exemptions, including provisions relevant to certain rural short-term rental properties.
Hamilton has introduced a Vacant Unit Tax as well.
Other municipalities may have their own programs. Before purchasing a second property, the municipal rules deserve the same attention as the purchase price.
Three Ownership Scenarios
A foreign investor buying an urban condominium runs into the federal ban first.
Inside a covered census metropolitan area, the purchase is generally prohibited unless an exemption applies. A qualifying work permit or eligible spousal arrangement may change that result.
If the purchase is permitted, additional provincial or municipal acquisition taxes may still apply.
In Ontario, that could mean the 25% provincial surcharge and, in Toronto, another 10%.
A Canadian buying a second home mainly for personal use faces no federal foreign buyer ban.
But citizenship doesn’t automatically eliminate vacancy taxes.
A second home used only occasionally may fail the occupancy requirements in Toronto, Ottawa, Vancouver or a designated BC area.
The federal principal residence exemption is a separate income tax question. Generally, a family unit can designate only one property as its principal residence for a particular year.
I cover that in the principal residence exemption post.
A Canadian buying a recreational property for seasonal use and rental income has to read the rental rules particularly carefully.
Vancouver, Toronto and British Columbia impose qualifying tenancy requirements that generally distinguish longer rental periods from nightly short-term stays.
A succession of weekend Airbnb bookings doesn’t automatically satisfy those rules.
Ottawa has a specific exemption relevant to certain rural cottage rentals, subject to licensing and rental-day requirements.
In a municipality without a vacancy tax, those particular obligations may not arise. But provincial non-resident property taxes, short-term rental regulations and ordinary income tax obligations can still matter.
The tax treatment of rental income is a separate issue, which I cover in rental property taxes in Canada.
The pattern across these vacancy regimes is similar: occupancy matters, and declarations matter.
A condo bought for a child attending university, a house between tenants or an inherited property awaiting sale can create unexpected obligations if the owner doesn’t understand the applicable exemptions and filing rules.
The Reciprocity Problem: What Canada’s Ban Does to Canadians in Italy
This is the part that made me want to write the post.
Many countries let foreigners buy property only if their own citizens receive comparable treatment abroad.
Italy is the case I know best, and I cover it in Italy real estate investing for Canadians.
Start with what is settled.
Article 16 of the preliminary provisions to Italy’s Civil Code permits foreigners to enjoy civil rights available to Italian citizens subject to reciprocity and applicable special legislation.
Italy’s Ministry of Foreign Affairs explains the principle and the circumstances in which a reciprocity check isn’t required.
The ministry plays a central role in assessing reciprocity, while the notary handling a property transaction must determine whether the buyer can legally complete the acquisition.
The practical test isn’t simply whether another country has a law mentioning foreign buyers. It concerns the rights available to Italians in comparable circumstances.
That distinction matters enormously when the foreign country’s restrictions vary by geography, property type or immigration status.
Italy’s ministry identifies categories of foreign nationals who do not require a reciprocity check, including certain holders of qualifying residence permits.
But not every residence permit necessarily provides the same treatment.
The Elective Residence Visa deserves particular caution.
The ministry’s general guidance doesn’t establish that an elective residence permit automatically removes the reciprocity requirement, and Italian notarial commentary has raised questions about that category.
I wouldn’t treat obtaining an Elective Residence Visa as a guaranteed solution without a written opinion addressing the resulting residence permit and the specific transaction.
What Canada’s ban did to the analysis is where things become unsettled.
The Canadian prohibition began in January 2023 and restricts many non-Canadians from acquiring existing residential property in covered urban areas.
An Italian citizen without an applicable Canadian exemption may therefore be unable to purchase a comparable Canadian property.
That potentially matters when a Canadian seeks to purchase residential property in Italy under a reciprocity-based legal system.
But the Canadian ban isn’t universal.
It excludes certain geographic areas, property types, buyers and transactions.
Those distinctions may matter to an Italian reciprocity assessment.
The Italian Foreign Ministry’s published guidance does not, by itself, establish that every Canadian citizen living outside Italy is prohibited from purchasing every type of Italian residential property.
Nor does it establish that every such purchase is permitted.
Italian notarial commentary has identified the Canadian prohibition as a potential complication requiring transaction-specific examination.
Purchases and gifts may also be treated differently.
An Italian lawyer reported in March 2026 that the Foreign Ministry had responded to a notary concerning reciprocity between Italy and Canada.
According to that account, the ministry distinguished gifts from purchases because Canada’s federal prohibition does not generally apply to acquisitions by gift.
I haven’t independently reviewed the original ministry correspondence, so I treat that account as professional commentary rather than a binding, publicly verified ruling.
The distinction is nevertheless consistent with Canada’s own regulations, which exclude certain transfers by gift, death, divorce and separation from the definition of a purchase.
I can’t say Canadians are categorically barred from buying in Italy, and I can’t say every Canadian can proceed without difficulty.
A Canadian holding a qualifying Italian residence permit may not require a reciprocity check.
A Canadian living in Canada without EU citizenship or another qualifying status may face additional scrutiny.
EU citizenship generally removes the reciprocity issue, which is one more reason to understand the citizenship flag.
For Canadians considering a longer stay, living in Italy as a Canadian examines the practical residency considerations.
Before signing a preliminary contract that puts a deposit at risk, I’d want the Italian notary’s written assessment of my eligibility, my residence status and the specific property.
That’s the point I’d leave the speculation crowd with.
A policy that sounds like a costless restriction on foreign buyers may also have consequences for Canadians who want to acquire property abroad.
I’m not arguing the ban is wrong. I’m arguing that restrictions can have consequences beyond Canada’s borders, and Canadians considering foreign property need to understand them.
What I’d Actually Do
- Check who counts as a non-resident before I check the price. As an Ontarian, I’d be a non-resident under certain Nova Scotia and Prince Edward Island property rules. Quebec’s agricultural land restrictions can also apply to Canadians from other provinces. Each regime uses its own definitions.
- Get the Italian notary’s written opinion before any binding agreement. I’d want confirmation of my permit category, the specific property and the applicable reciprocity position. I would treat an Elective Residence Visa as an unproven solution until the notary confirms otherwise.
- File every required vacancy declaration on time. Not every municipality requires one, but where declarations are mandatory, failing to file can create substantial financial consequences even when the property qualifies for an exemption.
- Price in holding costs before signing. Vacancy levies, non-resident property taxes, rental income taxes and ordinary carrying costs all matter. So does the fact that a family generally cannot designate two properties as principal residences for the same year.
- Keep dated records of personal use and every tenancy. I wouldn’t assume nightly Airbnb stays count toward occupancy requirements where qualifying rental periods must be at least 30 days or one month.
- Treat January 1, 2027 as a scheduled date, not a promise. My foreign real estate investing guide and offshore real estate guide provide the broader framework for evaluating different countries. If the winter base turns into a longer stay, snowbird versus full relocation covers the trade-offs, and flag theory explains the wider strategy.
This post is general information based on my own research and opinions as a Canadian writing from Ontario. It isn’t legal, tax, immigration or financial advice. Tax rates, the status of the foreign buyer ban and reciprocity determinations can change with little notice, and your situation will differ from mine. Confirm the current rules with a qualified real estate lawyer and a cross-border tax advisor, and for any purchase abroad, with a notary or lawyer in that country.