Foreign Ownership of Canadian Property

canflagSome Canadian provinces do restrict the amount of property a non-resident investor can purchase. On Canada’s east coast, the province of Prince Edward Island requires that a non-resident wanting to purchase land in excess of 5 acres or have a shore frontage greater than 165 feet must make application to the Island Regulatory and Appeals Commission. More details about the application process and ownership restrictions are available at www.irac.pe.ca. Nova Scotia, Newfoundland and New Brunswick, the other east coast provinces, as well as the provinces of Quebec, Ontario, and British Columbia do not have restrictions on foreign ownership.

In western Canada there are a variety of restrictions that do exist for foreign buyers. In Manitoba non-resident non-Canadians are prevented from owning farmland in Manitoba unless they intend to move to Manitoba within two years.

The province of Saskatchewan restricts non-Canadian residents to land holdings of 10 acres, while in Alberta foreign citizens and foreign controlled corporations may own up to two parcels of land not exceeding 20 acres in total.

Non resident purchasers of real estate should investigate other possible tax consequences, federal or provincial, such as the Canada Income Tax Act or provincial land transfer taxes that may apply.

Information concerning non-resident ownership of real property in Canada can be accessed in greater detail through the Canadian federal government website investincanada.ic.gc.ca

Information Courtesy of WorldProperties.com

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