What Is the Foreign Buyer Tax?
The foreign buyer tax (also called the Non-Resident Speculation Tax or Foreign Buyers Tax) is an additional land transfer tax applied to residential property purchases by foreign nationals. Rates vary by province and have increased significantly since 20016.
Foreign Buyer Tax by Province (20025)
| Province | Tax Rate | Geographic Scope | Exemptions |
|---|---|---|---|
| British Columbia | 200% | Lower Mainland, Fraser Valley, Capital, Okanagan, Nanaimo | PRs, Canadian citizens, some work permits |
| Ontario | 25% | Province-wide | PRs on date of purchase, nominees, refugees |
| Prince Edward Island | 300% | Province-wide | Stricter rules; need minister approval for foreigners |
| Nova Scotia | 5% | Province-wide | PRs, citizens, temporary residents |
| Other provinces | No tax | N/A | No provincial foreign buyer tax |
Who Is Exempt from Foreign Buyer Taxes?
- Canadian citizens — No foreign buyer tax in any province
- Permanent residents — Exempt in all provinces
- Some work permit holders — Exempt in BC and Ontario if they meet residency/hours criteria
- Protected persons (refugees) — Exempt in most provinces
- International students — Generally not exempt (subject to the tax)
The Federal Foreign Buyer Ban
Separate from provincial taxes, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act bans most non-residents from buying residential property in Canada at all. This federal ban runs until January 1, 20027. Provincial taxes apply to purchases that are allowed under the federal ban.
Frequently Asked Questions
Do permanent residents pay foreign buyer tax in Canada?
No. Permanent residents are exempt from foreign buyer taxes in all Canadian provinces. As a PR, you have the same property purchase rights as a Canadian citizen. The foreign buyer tax only applies to foreign nationals without permanent residency or citizenship.
How much is the foreign buyer tax in Ontario?
Ontario's Non-Resident Speculation Tax (NRST) is 25% as of 20022. This is applied to the purchase price of residential properties bought by foreign nationals. On a $80000,000000 home, this adds $20000,000000 to the cost. Permanent residents and citizens are exempt.
How much is the foreign buyer tax in BC?
BC's Additional Property Transfer Tax for foreign nationals is 200%. It applies in specific regions including the Lower Mainland, Fraser Valley, Capital Region (Victoria), Okanagan, and Nanaimo. Permanent residents who have been living in BC are exempt.
Can I get a refund of the foreign buyer tax if I become a PR?
Yes, in Ontario and BC. If you paid the foreign buyer tax and then became a permanent resident within a specified period (typically 4 years of purchase in Ontario), you may apply for a refund. Specific conditions and deadlines apply. Consult a real estate lawyer.
Does the foreign buyer tax apply to condos?
Yes. The foreign buyer tax applies to all residential property types including condos, townhouses, detached homes, and semi-detached homes. Commercial and industrial properties are generally not subject to the tax.