The provisions of the Prohibition on the Purchase of Residential Property by Non-Canadians Act are effective since January 1st, 2023, for a 2-year period, and limit access to real estate ownership for certain temporary residents already in Canada, and for all who plan to stay in Canada by January 2025. This is an important element to consider during the overall integration process of your temporary foreign workers. You will find hereunder the key points of this prohibition, and the situations in which the prohibition may not apply.
Here are some important elements to keep in mind:
- The new Act prohibits the purchase of residential property by non-Canadians from January 1st, 2023 to January 1st, 2025.
- The ban does not apply to non-Canadians who already have permanent resident status, or who are considering purchasing in co-ownership with their spouse or common-law partner, already a Canadian citizen or permanent resident.
- The ban also exempts certain foreign nationals who have temporary residential status (students and workers), provided however that they meet all the requirements prescribed under the Regulation respecting the application of the Act.
- With regards to temporary foreign workers, the requirements to access ownership of property despite the provisions of the Act are as follows:
- The worker must comply with the definition of temporary resident as defined in the Act, which includes having valid status in Canada, and meeting the requirements imposed under their work authorization;
- The worker must have worked full-time (at least 30 hours per week) in Canada for at least 3 years over the 4 years that precede the year of purchase;
- The worker must have filed at least 3 tax returns over the 4 taxation years that precede the year of purchase;
- This must be the only residential property purchased by the worker.
- Finally, the prescribed real property or immovables that are not located in a census agglomeration or census metropolitan area are excluded from the ban.
It is important to be cautious on the matter as the Act provides sanctions for every person or entity that counsels, induces, aids or abets or attempts to counsel, induce, aid or abet a non-Canadian to purchase property in contravention of these provisions. Such a person, for example, is liable to a maximum fine of $10,000.
Our teams of professionals in immigration law and real estate law can guide and assist you in understanding these new provisions and their tangible impact on your strategies when recruiting and retaining foreign workers. Do not hesitate to contact us.
With our team of professionals, lawyers, notaries and tax specialists covering the entire Quebec territory, Cain Lamarre is the most well-established law firm in Quebec and one of the largest in the province.
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