Can Foreigners Buy Land in Alberta? Residency Rules Explained

If you are a newcomer, a non-resident or a foreign company, you may wonder whether you can buy a home, an acreage or a cabin lot in Alberta. The answer depends on what kind of land it is, where it sits and who you are.

Two layers of law can apply: an Alberta rule about rural and recreational land, and a federal rule about residential property. This article walks through both in plain language.

This article covers the law of Alberta.

Who counts as a foreign buyer in Alberta

Under Alberta's regulations, an ineligible person is an individual who is not a Canadian citizen or permanent resident, a foreign government or its agency, or a corporation incorporated outside Canada. Canadian citizens and permanent residents (landed immigrants) are not affected by the regulations.

A corporation is foreign-controlled if share ownership is 50% or more foreign, or if it is effectively controlled by foreigners. For public corporations, only shareholders owning 5% or more are counted, provided two-thirds of the directors are Canadian citizens or permanent residents. Trusts cannot be used to circumvent the rules.

The Alberta rule: rural agricultural and recreational land

The provincial rules restrict non-Canadians who are not permanent residents only as to controlled land, meaning rural agricultural and recreational land. Land inside city, town, village or summer village boundaries is not restricted.

Controlled land is land in Alberta other than Crown land, land within city, town, village or summer village boundaries, and mines and minerals. Even so, an ineligible person may generally hold not more than 2 parcels totalling not more than 20 acres.

If several people buy land together as tenants in common, they may not acquire an interest in a parcel over 20 acres if more than 5 ineligible persons or foreign controlled corporations would hold it.

If the limits are exceeded, a court may order a judicial sale on the Attorney General's application for land that must be divested or was acquired unlawfully. Sale proceeds first cover costs, then the owner's purchase price, and any remainder goes to the General Revenue Fund.

The federal rule on residential property

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act prohibits a non-Canadian from purchasing, directly or indirectly, any residential property. Property outside a census agglomeration or census metropolitan area is excluded from the definition of residential property, so the ban generally does not reach rural land outside those areas.

A non-Canadian who breaks the ban, or a person who knowingly helps them, may face a fine of up to $10,000 on summary conviction. The ban is set to continue to January 1, 2027, so check the current federal position before you buy.

Common exceptions

• Temporary residents with a work permit that has 183 days or more of validity remaining may buy no more than one residential property.
• A non-Canadian buying with a spouse or common-law partner who is a citizen, registered Indian or permanent resident is covered by an exception.
• Acquisitions by inheritance, divorce, separation or gift, renting to a tenant, and acquisitions for development are not caught by the federal ban.
• Under the Alberta regulations, leases of 20 years or less are allowed if registered within 60 days, and options to purchase are allowed if exercisable within one year.
• Alberta's statutory exemptions include a single residence up to 20 acres or a residential development up to 80 acres, and industrial, commercial or transportation facilities up to 80 acres per facility.
• Other Alberta exemptions cover right-of-entry orders, pipelines, power and telephone systems, inherited estates, court charges for spouses or children, and cemetery plots.
• Beyond the standard exemptions, a foreign person may seek an Order in Council, granted at the Lieutenant Governor in Council's discretion.

Each exception has conditions, so the details of your situation matter. For example, land held under several of the Alberta exemptions must generally be divested within 3 years of the purpose ending, reclamation completing or the purpose being abandoned. After a foreclosure, an ineligible person must divest of the land within 3 years.

What to do next

• Confirm whether the land is inside or outside a city, town, village or summer village.
• Confirm your own status and, if buying through a company, who owns its shares.
• Check whether the federal ban applies to the property's location and whether it is still in force.
• Expect to sign a statutory declaration about citizenship, residency or corporate ownership with the transfer.
• If a corporation will own controlled land, be ready for an annual report (Form 5) when the Minister requires it.
• Speak with a lawyer before signing a purchase contract.

Frequently asked questions