Can Non-Residents Buy Property in BC? Rules for Foreign Buyers

If you live outside Canada and want a home or land in British Columbia, the first question is whether you are allowed to buy at all. The answer depends on your status, the type of property and where it is located.

Two layers of rules matter: a federal ban on some purchases by non-Canadians, and BC taxes and reporting rules that apply to many buyers who are allowed to purchase. This article walks through both and the practical steps.

This article covers the law of British Columbia.

Start with the federal ban

Federal law bars a non-Canadian from purchasing, directly or indirectly, any residential property. This is found in the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which came into force on January 1, 2023.

The term non-Canadian is wider than individuals. It includes a corporation incorporated outside Canada and its provinces, certain Canadian corporations controlled by a non-Canadian, and prescribed persons or entities. The ban was announced to run until January 1, 2027. Because that date is close, confirm with a lawyer whether it has been extended before you plan around it ending.

Where the ban does not reach

The ban is not total. Property that is not within a census agglomeration or a census metropolitan area is excluded from the definition of residential property, so the ban does not reach it. Vacant land is not listed as its own exception. Whether a particular BC address is covered depends on its location, so it needs to be checked.

There are also exceptions based on who you are or how you acquire the property:

• Protected persons under the Immigration and Refugee Protection Act, and situations where the ban would be incompatible with rights under section 35 of the Constitution Act, 1982.
• Interests that come from death, divorce, separation or a gift.
• Renting a dwelling to a tenant, certain trusts created before the Act, transfers from a secured creditor, and acquisitions for development.
• Some international students and work permit holders, but only if conditions such as days in Canada, a price cap and a one-property limit are met.
• Diplomats, safe-haven recipients and certain refugee claimants.

BC tax on foreign buyers

If you are allowed to buy, BC may still charge an additional property transfer tax. It is 20% of the fair market value of your proportionate share of the residential portion of a property in a specified area, and it applies to foreign nationals, foreign corporations and taxable trustees. The specified areas are the Capital Regional District, Fraser Valley Regional District, Metro Vancouver Regional District, Regional District of Central Okanagan and Regional District of Nanaimo.

This tax is on top of the ordinary property transfer tax, which is 1% on the first $200,000, 2% on the portion up to $2,000,000 and 3% above that, with a further 2% on residential value above $3,000,000. Our separate article on the additional tax covers who counts as a foreign national or foreign corporation.

Reporting who owns the land

When you apply to register an interest in land, the Land Owner Transparency Act requires a transparency declaration. A transparency report is required only if the future registered owner is a reporting body, meaning a corporation, a trustee of a relevant trust or a partner of a relevant partnership. Land that is treaty land, self-governing First Nation land or reserve land does not need a declaration; a Declaration of Exclusion is submitted instead.

Registry information is publicly searchable and shows the reporting body and the individuals named as interest holders or settlors, though not date of birth, SIN or home address. Leaving required information out, or giving false or misleading information, can lead to an administrative penalty.

Steps to take before you make an offer

• Confirm your immigration or corporate status and whether the federal ban could apply to you.
• Confirm whether the property is in a census metropolitan area or census agglomeration.
• Check whether it is in a specified area for the additional property transfer tax.
• Decide whether you will hold title personally, jointly or through a company or trust, since each has different tax and reporting effects.
• For rural land, ask about water, septic and Agricultural Land Reserve status before you commit.
• Have a lawyer review the contract and confirm the current status of the ban.

If you will share title with a Canadian citizen or permanent resident, only the foreign buyer's share is taxed under the additional tax. How you structure ownership can matter, but the anti-avoidance rule lets the administrator determine tax consequences in a way that is reasonable in the circumstances in order to deny a tax benefit. Get advice before choosing a structure.

Frequently asked questions