Foreign Buyer Ban in British Columbia: Is the Federal Prohibition Still On?

If you are buying in British Columbia from abroad, or you are on a temporary visa, you have probably heard that Canada bans foreign buyers. The reality is narrower than the headlines. The ban has a geographic limit and a long list of exceptions.

This article explains who is covered, the main exceptions, where the ban stands in time and what the consequences are. Whether it applies to you depends on your status and the property, so a lawyer should confirm before you commit.

This article covers the law of British Columbia.

Who and what the ban covers

The Prohibition on the Purchase of Residential Property by Non-Canadians Act bars a non-Canadian from purchasing, directly or indirectly, any residential property. The word indirectly matters, because arrangements designed to get around the ban can still be caught.

A non-Canadian includes a corporation incorporated otherwise than under the laws of Canada or a province, certain Canadian-incorporated corporations controlled by a non-Canadian, and prescribed persons or entities.

Property that is not within a census agglomeration or a census metropolitan area is excluded from residential property, so the ban does not reach it. Vacant land is not listed as its own exception. Whether a given BC address is covered depends on where it is.

Main exceptions

Several exceptions have conditions, so read them closely.

• Protected persons under s. 95(2) of the Immigration and Refugee Protection Act are exempt.
• The ban does not apply where it would be incompatible with rights recognized by s. 35 of the Constitution Act, 1982.
• Also excluded are renting a dwelling unit to a tenant to occupy, transfers under a trust created before the Act came into force, transfers from a secured creditor exercising a security interest, and acquisitions for the purposes of development.

Is the ban still in effect?

The Department of Finance announced in February 2024 that the ban, which was set to expire on January 1, 2025, would be extended to January 1, 2027. As of late October 2026 that date is only a couple of months away.

Do not assume the ban will lapse or continue on that date. Check the current federal legislation and announcements, and ask a lawyer about the status on your expected closing date. Your contract may close after any change, so timing deserves attention.

What happens if a BC purchase breaks the ban

A non-Canadian who contravenes the ban, or anyone who counsels, induces, aids or abets a prohibited purchase knowing it is prohibited, is guilty of an offence liable on summary conviction to a fine of not more than $10,000.

After a conviction, the superior court of the province where the property is located, which in BC is the Supreme Court of British Columbia, may on the Minister's application order the residential property to be sold in the prescribed manner. The court can set terms it considers appropriate.

The ban is separate from BC's additional property transfer tax. Meeting a federal exception does not remove the 20% additional tax in the five specified regions, although separate BC exceptions exist.

What to do next

• Confirm your citizenship, permanent residence or temporary status and keep the documents.
• Check whether the property is inside a census metropolitan area or census agglomeration.
• If you rely on an exception, gather proof of days in Canada, tax filings, permit dates and purchase price.
• Check the ban's current end date and whether your closing falls before or after it.
• Have a lawyer review your contract before you remove conditions.

Frequently asked questions