Can Foreigners Buy Property in Canada in 2025? Foreign Buyer Ban Rules Explained

 

As of 2025, foreigners can buy property in Canada under specific conditions — but federal and provincial rules have changed significantly since 2022, and international buyers must understand exactly where they stand before making any purchase. This comprehensive guide breaks down the Canada foreign buyer ban current status, the Non-Resident Speculation Tax in Ontario, key exemptions, and what international buyers need to know when navigating Canadian real estate today.

Fardad Farhanian is a licensed real estate broker with RE/MAX REALTRON REALTY INC., Brokerage, with 25+ years of experience and $750M+ in successful transactions helping clients — including international buyers — purchase property across Canada. Reach out at +1 416-707-1031 or explore available properties in Canada to get started.

What Is the Canada Foreign Buyer Ban — and Is It Still in Effect in 2025?

The Prohibition on the Purchase of Residential Property by Non-Canadians Act — commonly referred to as the “foreign buyer ban” — was originally introduced by the federal government on January 1, 2023. The legislation was designed to cool Canada’s overheated housing market by restricting non-Canadians from purchasing residential real estate for a two-year period.

As of January 1, 2025, the foreign buyer ban has expired and has not been renewed by the federal government. This means the blanket prohibition on non-Canadians purchasing residential property in Canada is no longer in force at the federal level as of 2025. However, this does not mean international buyers face zero restrictions — provincial taxes, stress tests, and legal requirements still apply and must be carefully navigated.

The expiry of the federal ban is significant news for international investors, newcomers, and overseas buyers who had placed Canadian real estate plans on hold. That said, the regulatory environment remains complex, and working with an experienced broker is essential to avoid costly errors.

Ontario’s Non-Resident Speculation Tax (NRST): What Foreign Buyers Must Pay in 2025

Ontario’s Non-Resident Speculation Tax (NRST) is a provincial-level tax that applies to non-residents purchasing residential property in Ontario, and as of 2025, this tax remains in effect at a rate of 25% of the purchase price.

The NRST applies to the purchase or acquisition of residential property located anywhere in Ontario by individuals who are not Canadian citizens, permanent residents of Canada, or specified Canadian corporations. This means that a foreign national purchasing a home in Toronto, Markham, Vaughan, Richmond Hill, or any other Ontario municipality would be subject to this substantial additional tax on top of the Ontario Land Transfer Tax.

Key facts about the Ontario NRST in 2025:

• Rate: 25% of the property’s purchase price
• Applies to: Residential properties including detached homes, condos, and multi-unit residential buildings (up to six units)
• Who pays: Non-citizens and non-permanent residents purchasing in Ontario
• Rebates available: Certain buyers — such as international students or foreign workers — may qualify for a rebate if they meet specific provincial criteria after purchase

Because tax obligations can be complex and have serious financial consequences, always consult a licensed real estate lawyer before proceeding with any purchase. Fardad Farhanian can connect you with trusted legal professionals as part of his full-service approach to residential real estate in Canada.

Who Can Buy Property in Canada as a Foreigner in 2025?

With the federal ban expired, most non-Canadians can technically purchase real estate in Canada in 2025, but their eligibility for provincial tax exemptions and rebates varies significantly based on immigration status, property type, and location.

Buyer Category	Eligible to Purchase?	Ontario NRST Applies?	Rebate Possible?
Canadian Citizen	Yes	No	N/A
Permanent Resident	Yes	No	N/A
Foreign National (investor/visitor)	Yes	Yes – 25%	No
International Student (Ontario)	Yes	Yes – 25%	Possible (conditions apply)
Foreign Worker (work permit holder)	Yes	Yes – 25%	Possible (conditions apply)
Refugee Claimant	Yes	Exemption may apply	Varies

Note: Tax rules and eligibility criteria are subject to change. Always verify current requirements with a qualified real estate lawyer and tax advisor before purchasing.

Additional Costs and Considerations for International Buyers in Canada

Beyond the Non-Resident Speculation Tax, international buyers face a series of additional financial obligations and logistical considerations that differ from those of domestic Canadian buyers.

Mortgage Financing for Non-Residents

Non-residents purchasing property in Canada may face stricter lending criteria than Canadian residents. Most Canadian banks and institutional lenders require non-resident buyers to provide a larger down payment — often 35% or more — and documentation of income, assets, and credit history from their home country. It is strongly recommended that international buyers consult a qualified mortgage broker familiar with non-resident financing before beginning a property search. Use the RealtyMan mortgage calculator to get a general sense of payment ranges based on purchase price.

Withholding Tax on Sale (Section 116 Requirements)

When a non-resident sells Canadian property, the federal government requires a withholding of a portion of the sale proceeds under Section 116 of the Income Tax Act. This is not a purchase cost, but it is an important consideration for international buyers thinking about eventual resale or exit strategy. A real estate lawyer must be engaged to manage compliance with these obligations.

Property and Land Transfer Taxes

All buyers in Ontario — resident and non-resident alike — are subject to the Ontario Land Transfer Tax. Buyers purchasing in the City of Toronto also pay a Municipal Land Transfer Tax on top of the provincial rate. These are separate from the NRST and apply across the board.

Which Property Types Can Foreigners Buy in Canada?

While the expired federal ban specifically targeted residential properties, it is worth noting that it never applied to commercial or industrial real estate. As of 2025, international buyers face no federal prohibition on purchasing commercial buildings, office properties, retail space, industrial facilities, or raw land designated for commercial development.

For investors interested in commercial and industrial properties in Canada, these asset classes have historically presented strong opportunities and remain open to global capital. Fardad Farhanian has deep expertise in commercial acquisitions across the Greater Toronto Area and beyond.

Residential real estate — including condominiums, detached homes, and multi-unit properties — is now open to foreign purchasers again at the federal level, with provincial taxes applying as described above.

Where in Canada Are Foreign Buyers Most Active in 2025?

Fardad Farhanian serves international clients purchasing property across Canada, including the Greater Toronto Area (Thornhill, North York, Markham, Richmond Hill, Vaughan, Aurora, Brampton, Mississauga), British Columbia (Kelowna, Vancouver, Victoria, Surrey), and markets in Alberta, Manitoba, and the Maritimes. Each province has its own rules regarding non-resident purchases, speculation taxes, and foreign buyer surcharges.

British Columbia, for example, has its own Foreign Buyer Tax at the provincial level in designated areas, including Metro Vancouver. Alberta and Manitoba do not currently impose a foreign buyer surcharge, making those markets potentially more accessible from a tax standpoint. International buyers should always verify the rules in the specific province and municipality where they intend to purchase. Browse RealtyMan’s service areas to explore coverage across Canada.

Frequently Asked Questions: Foreigners Buying Property in Canada in 2025

Is the Canada foreign buyer ban still in effect in 2025?

No. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act expired on January 1, 2025, and as of the time of this writing, the federal government has not reinstated it. Non-Canadians are once again permitted to purchase residential real estate in Canada, subject to applicable provincial taxes and restrictions.

How much is the foreign buyer tax in Ontario in 2025?

Ontario’s Non-Resident Speculation Tax (NRST) is set at 25% of the property’s purchase price as of 2025. This applies to non-citizens and non-permanent residents purchasing residential properties in Ontario. Some exemptions and rebates are available for qualifying international students and foreign workers who meet provincial criteria.

Can a non-resident get a mortgage in Canada to buy property?

Yes, non-residents can obtain mortgages from Canadian lenders, but qualifying criteria are stricter than for Canadian residents. Non-residents typically require a down payment of 35% or more, along with comprehensive documentation. General guidance is available through the RealtyMan mortgage calculator, but consulting a licensed mortgage broker is strongly recommended for personalized advice.

Do foreign buyers pay more taxes than Canadian residents when buying property in Ontario?

Yes. In addition to the Ontario Land Transfer Tax (which all buyers pay), non-resident buyers in Ontario are subject to the 25% Non-Resident Speculation Tax, making the overall tax burden significantly higher than for Canadian citizens or permanent residents. Toronto purchasers also pay the Municipal Land Transfer Tax regardless of residency status.

Can a non-resident buy commercial property in Canada without restrictions?

As of 2025, there is no federal prohibition on non-residents purchasing commercial, industrial, or investment-grade properties in Canada. The foreign buyer restrictions that existed under the 2023–2024 ban and that persist under Ontario’s NRST apply specifically to residential real estate. International investors interested in commercial and industrial real estate face fewer regulatory barriers, though legal and tax advice is always recommended.

Work With an Experienced Broker Who Understands International Buyer Needs

Navigating Canadian real estate as an international buyer requires a broker who understands both the local market and the regulatory landscape that affects non-resident purchasers. Fardad Farhanian, Broker, RE/MAX REALTRON REALTY INC., Brokerage, has worked with buyers from around the world for over 25 years, guiding them through $750M+ in successful transactions across Canada.

Fardad is bilingual in English and Farsi and brings deep expertise in residential, commercial, luxury, and investment properties across the GTA and beyond. Whether you are purchasing a condominium in Thornhill, a commercial property in Vaughan, or exploring opportunities in British Columbia, Fardad offers the market knowledge and professional network to help you make informed decisions.

To learn more about Fardad’s background and credentials, visit the About Fardad Farhanian page, or contact RealtyMan directly to book a consultation. You can also reach Fardad at +1 416-707-1031 or by email at gtarealtyman@gmail.com. The Thornhill office is located at 7646 Yonge Street, Thornhill, ON L4J 1V9, by appointment.

Disclaimer: This article is intended for general informational purposes only and does not constitute legal, financial, tax, or mortgage advice. Laws and regulations affecting foreign buyers are subject to change. Always consult a licensed real estate lawyer, tax advisor, and mortgage broker before making any real estate purchase in Canada.