Can a foreign buyer or non-resident purchase property in Ontario?

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act blocks non-Canadians from buying most residential property in census areas with 10,000 or more people, in effect until January 1, 2027 (as of 2026). But there are real exceptions. Permanent residents and Canadian citizens aren't affected at all. Some temporary residents are exempt too, including certain work permit holders who have at least 183 days remaining on their permit at the time of purchase and who haven't already bought another home under this exemption. Refugees, and non-Canadians buying with a Canadian spouse or common-law partner, generally aren't affected either. The rules are detailed and depend on your specific status, so confirm your own eligibility before you make an offer.

Ontario charges a Non-Resident Speculation Tax, or NRST, of 25% of the purchase price on residential property bought by foreign nationals, foreign corporations, and certain taxable trustees anywhere in Ontario (as of 2026). It applies on top of regular land transfer tax and Toronto's municipal land transfer tax where relevant. In Toronto, a separate 10% Municipal Non-Resident Speculation Tax has also applied to foreign buyers of certain residential property since January 1, 2025. Some buyers qualify for exemptions or rebates, including certain protected persons, nominees under specific provincial programs, and in some cases spouses of Canadian citizens or permanent residents. It's paid at closing along with land transfer tax, so it has to be planned for upfront, not discovered afterward.

Residency for tax purposes isn't just about citizenship or immigration status. The CRA looks at your overall ties to Canada: where your home, spouse, and dependents are, and how much time you spend here. Someone can hold Canadian citizenship and still be a non-resident for tax purposes if they live abroad, and someone without citizenship can be a tax resident if their life is centred in Canada. This matters separately from the federal buying ban and the NRST, and it's worth confirming with an accountant if your situation isn't clear-cut.

When a non-resident sells taxable Canadian property, including most residential real estate, the Income Tax Act requires a clearance certificate under section 116 before the full sale proceeds can be released. Without a certificate in hand by closing, the buyer's lawyer must withhold and remit 25% of the gross sale price to the CRA, not just 25% of the profit, regardless of what the seller actually gained. If the seller has a valid clearance certificate by closing, withholding drops to 25% of the actual gain instead. Getting the certificate takes time, so a non-resident seller should apply well before their closing date, not after listing the property.

Yes, indirectly. As the buyer, your lawyer has a legal duty to confirm the seller's residency status and, if they're non-resident, to hold back the correct withholding amount from the proceeds at closing. This protects you, not just the seller, since the buyer can be held personally liable for unremitted withholding tax if it's missed.