Foreign Ownership of Alberta Farmland: Limits for Non-Canadians

If you are not a Canadian citizen or permanent resident, or you buy through a company with foreign owners, Alberta has rules that limit what rural land you can acquire. Many buyers assume the rules cover all Alberta land, but they do not.

This article explains who is affected, what controlled land means, the acreage allowance, the main exemptions and what happens if limits are exceeded. A separate federal law on residential property may also matter. Get legal advice before signing an agreement, since the details turn on your facts.

This article covers the law of Alberta.

What controlled land is and who is restricted

Under the Agricultural and Recreational Land Ownership Act, controlled land is land in Alberta other than Crown land, land within city, town, village or summer village boundaries, and mines and minerals. Alberta describes this as rural agricultural and recreational land.

The restriction applies to an ineligible person or a foreign controlled corporation. 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, and trusts cannot be used to circumvent them. A corporation is foreign-controlled if share ownership is 50% or more foreign or it is effectively controlled by foreigners; for public corporations only shareholders owning 5% or more are counted, provided two-thirds of directors are Canadian citizens or permanent residents.

The acreage limit

Under the Foreign Ownership of Land Regulations (AR 160/79) s.4(1), no ineligible person or foreign controlled corporation may take or acquire controlled land, subject to s.5(1), which allows not more than 2 parcels totalling not more than 20 acres. The Act also provides that the regulations do not restrict ownership of controlled land totalling not more than 2 parcels and 20 acres combined.

There is a special rule for 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.

Main exemptions

The regulations list several exceptions. Leases of 20 years or less are allowed if registered within 60 days, and options to purchase controlled land are allowed if exercisable within one year. Statutory exemptions under s.8(1) include the following:

• A single residence up to 20 acres, or a residential development up to 80 acres where the area is suitable for residential use.
• Industrial, processing, manufacturing, commercial or transportation facilities up to 80 acres per facility.
• Sand, gravel, clay or marl extraction up to 160 acres per project.
• 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, which is granted at the Lieutenant Governor in Council's discretion.

Declarations, divestiture and consequences

Declarations (Forms 1 to 4.1: citizenship, residency, corporate ownership or trustee) are required with transfers, transmissions, caveats or subdivision plans. The Registrar shall refuse to register a transfer, transmission, caveat or lease without the statutory declaration. Corporations owning controlled land file an annual report (Form 5) when the Minister requires it.

Land held under some exemptions must be divested within 3 years of the purpose ending, reclamation completing or the purpose being abandoned. A corporation that becomes foreign controlled generally has 3 years to divest unless it stops being foreign controlled for at least 12 continuous months within that period. After a foreclosure, the ineligible person must divest within 3 years.

If limits are exceeded, a court may order a judicial sale on the Attorney General's application; proceeds first cover costs, then the owner's purchase price, and any remainder goes to the General Revenue Fund.

The federal ban and what to do next

Federal law separately prohibits a non-Canadian from purchasing, directly or indirectly, any residential property. The ban continues to January 1, 2027 under the current repeal date, so confirm whether it has been extended. Property not within a census agglomeration or census metropolitan area is excluded from residential property, so the ban generally does not reach rural land outside those areas. A non-Canadian who contravenes the ban, or knowingly helps one do so, is liable on summary conviction to a fine of not more than $10,000.

Federal exceptions include acquisitions by inheritance, divorce, separation or gift, and buying with a spouse or common-law partner who is a Canadian citizen, registered Indian or permanent resident.

• Confirm the land is controlled land, not inside a city, town, village or summer village.
• Work out whether you, or the corporation, count as ineligible or foreign controlled.
• Check whether the 2-parcel, 20-acre allowance or an exemption fits your plan.
• Prepare the required declarations before the transfer.
• Check the current federal ban rules and get legal advice before you sign.

Frequently asked questions