2-Years Ban on Foreigners Buying Residential Property in Canada Starts on 1st January 2023, Top Immigrants to Canada from India, Philippines & China from 2016 to 2021
6th December 2022 | Hong Kong
Canada 2-years ban on foreigners including companies buying residential property in Canada will start on the 1st of January 2023 till 31st of December 2024. In 2021, Canada top 3 immigrants are from India, Philippines & China (2016 to 2021). The ban on buying residential vacant land has yet to be determined. Canada is the 9th largest economy in the world with $1.9 trillion GDP (2021) and a population of 38.2 million people. The largest companies in Canada includes Royal Bank of Canada (RBC), Brookfield Asset Management, Bank of Montreal, Scotiabank, Manulife, Thomson Reuters, Shopify, Lululemon, Canadian National Railway, Canadian Natural Resource & Enbridge. See below for the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
“ 2-Years Ban on Foreigners Buying Residential Property in Canada Starts on 1st January 2023, Top Immigrants to Canada from India, Philippines & China from 2016 to 2021 “
Prohibition on the Purchase of Residential Property by Non-Canadians Act
Prohibition on the Purchase of Residential Property by Non-Canadians Act
An Act to prohibit the purchase of residential property by non-Canadians
1 This Act may be cited as the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
The following provision is not in force.
Marginal note:
Definitions
2 The following definitions apply in this Act.
- common-law partner, in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year. (conjoint de fait)
- control has the meaning assigned by the regulations. (contrôle)
- dwelling unit means a residential unit that contains private kitchen facilities, a private bath and a private living area. (local d’habitation)
- Minister means the federal minister designated under section
3. (ministre)
non-Canadian means
- The following provision is not in force.
(a) an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident; - The following provision is not in force.
(b) a corporation that is incorporated otherwise than under the laws of Canada or a province; - The following provision is not in force.
(c) 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); and - The following provision is not in force.
(d) a prescribed person or entity. (non-Canadien)
permanent resident has the same meaning as in subsection 2(1) of the Immigration and Refugee Protection Act. (résident permanent)
prescribed means prescribed by regulation. (Version anglaise seulement)
residential property means any real property or immovable, other than a prescribed real property or immovable, that is situated in Canada and that is
- The following provision is not in force.
(a) a detached house or similar building, containing not more than three dwelling units, together with that proportion of the appurtenances to the building and the land subjacent or immediately contiguous to the building that is reasonably necessary for its use and enjoyment as a place of residence for individuals; - The following provision is not in force.
(b) a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property or immovable owned, or intended to be owned, apart from any other unit in the building, together with that proportion of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the house, unit or premises and that is reasonably necessary for its use and enjoyment as a place of residence for individuals; or - The following provision is not in force.
(c) any prescribed real property or immovable. (immeuble résidentiel)
The following provision is not in force.
Marginal note:
Designation of Minister
3 The Governor in Council may, by order, designate any federal minister to be the Minister for the purposes of this Act.
The following provision is not in force.
Marginal note:
Prohibition
The following provision is not in force.
4 (1) Despite section 34 of the Citizenship Act, it is prohibited for a non-Canadian to purchase, directly or indirectly, any residential property.
The following provision is not in force.
Marginal note:
Exception — persons
(2) Subsection (1) does not apply to
-
- The following provision is not in force.
(a) a temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions; - The following provision is not in force.
(b) a protected person within the meaning of subsection 95(2) of that Act; - The following provision is not in force.
(c) an individual who is a non-Canadian and who purchases residential property in Canada with their spouse or common-law partner if the spouse or common law-partner is a Canadian citizen, person registered as an Indian under the Indian Act, permanent resident or person referred to in paragraph (a) or (b); or - The following provision is not in force.
(d) a person of a prescribed class of persons.
- The following provision is not in force.
The following provision is not in force.
Marginal note:
Exception — circumstances
(3) Subsection (1) does not apply in prescribed circumstances.
The following provision is not in force.
Marginal note:
Foreign state
(4) For greater certainty, nothing in subsection (1) is to be construed as hindering a foreign state from purchasing residential property for diplomatic or consular purposes.
- The following provision is not in force.
Marginal note:
Non-application
(5) Subsection (1) does not apply if the non-Canadian becomes liable or assumes liability under an agreement of purchase and sale of the residential property before the day on which this Act comes into force.
The following provision is not in force.
Marginal note:
Validity
5 The contravention of section 4 does not affect the validity of the sale of the residential property to which the contravention relates.
The following provision is not in force.
Marginal note:
Offence
- The following provision is not in force.
6 (1) Every non-Canadian that contravenes section 4 and every person or entity that counsels, induces, aids or abets or attempts to counsel, induce, aid or abet a non-Canadian to purchase, directly or indirectly, any residential property knowing that the non-Canadian is prohibited under this Act from purchasing the residential property is guilty of an offence and liable on summary conviction to a fine of not more than $10,000. - The following provision is not in force.
Marginal note:
Party to offence
(2) If a corporation or entity commits an offence, any of the following persons that directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and liable for the offence whether or not the corporation or entity has been prosecuted or convicted:- The following provision is not in force.
(a) an officer, director or agent or mandatary of the corporation or entity; - The following provision is not in force.
(b) a senior official of the corporation or entity; - The following provision is not in force.
(c) any individual authorized to exercise managerial or supervisory functions on behalf of the corporation or entity.
- The following provision is not in force.
The following provision is not in force.
Marginal note:
Order
- The following provision is not in force.
7 (1) If a non-Canadian is convicted of having contravened section 4, the superior court of the province in which the residential property to which the contravention relates is situated may, on application of the Minister, order the residential property to be sold in the prescribed manner and under prescribed conditions. - The following provision is not in force.
Marginal note:
Terms
(2) Subject to the regulations, the superior court may make the order subject to any terms that it considers appropriate.
The following provision is not in force.
Marginal note:
Regulations
- The following provision is not in force.
8 (1) The Governor in Council may, on the recommendation of the Minister after consultation with the Minister of Finance, make regulations- The following provision is not in force.
(a) defining “control” for the purposes of this Act; - The following provision is not in force.
(b) respecting what constitutes a purchase for the purposes of this Act; - The following provision is not in force.
(c) respecting the making of orders under section 7; and - The following provision is not in force.
(d) prescribing anything that by this Act is to be prescribed.
- The following provision is not in force.
- The following provision is not in force.
Marginal note:
Paragraph (1)(c)
(2) Regulations made under paragraph (1)(c) must provide that no non-Canadian receive from the proceeds that results from a sale of a residential property ordered under section 7 more than the purchase price they paid for the residential property.
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