Can non-residents buy property in British Columbia, and what restrictions apply?
This answer covers the law of British Columbia.
It depends on who you are and where the property is. A non-Canadian generally cannot buy residential property in Canada under a federal ban that came into force on January 1, 2023, but the ban does not reach property outside a census agglomeration or census metropolitan area. The ban is scheduled to end on January 1, 2027 following a February 2024 announcement, so confirm its current status before you act.
Even where a purchase is allowed, BC adds its own tax. Foreign nationals, foreign corporations and taxable trustees pay an additional property transfer tax of 20% on their share of the residential portion of property in Metro Vancouver, the Capital, Fraser Valley, Central Okanagan and Nanaimo regional districts. If title is shared with a citizen or permanent resident, only the foreign buyer's share is taxed.
Buyers registering an interest in land must also file a transparency declaration. A transparency report is required only if the future registered owner is a reporting body, such as a corporation. Some buyers are exempt from parts of these rules, so a lawyer or accountant can confirm your situation.
Key takeaways
- The federal ban covers residential property inside census metropolitan areas and census agglomerations, and does not reach property outside them.
- BC's additional property transfer tax is 20% of a foreign buyer's share, and a confirmed BC Provincial Nominee buying a principal residence as an individual can be exempt once.
- Leaving required information out of a transparency declaration or report can bring an administrative penalty of up to the greater of $25,000 for individuals or $50,000 for others, or 5% of the property's assessed value.
- The federal Underused Housing Tax no longer requires returns for 2025 and later years, but returns and late penalties still apply for 2022 to 2024.