Investments
Buying property in Canada as a non-resident
What you may buy, what it costs, how to finance and close from abroad, and how rent and sale proceeds are taxed. Written for buyers in Ontario and the Greater Toronto Area.
Two different tests. The foreign buyer ban and Ontario’s Non-Resident Speculation Tax look at citizenship and immigration status. Income tax looks at where you live. A Canadian citizen living abroad is not caught by the ban or the speculation tax, but is a non-resident for tax on rent and on a sale.
The process
Six steps from first call to keys
Confirm what you are allowed to buy
Until January 1, 2027 the federal ban stops most non-Canadians from buying buildings of up to three homes in cities and larger towns. Buildings of four or more units, vacant land, development sites and property outside those areas are open, and some work permit holders, students and spouses of Canadians are exempt. See where the ban stands.
Budget for the full cost
Add Ontario’s 25% Non-Resident Speculation Tax, a further 10% inside the City of Toronto, land transfer tax, legal fees and, on a new home, HST. On a $1 million condominium in Toronto the two non-resident taxes alone come to $350,000.
Arrange financing early
Canadian lenders do lend to non-residents, usually against a larger down payment, and they verify your income and the source of your funds. Open a Canadian bank account and allow several weeks. We introduce mortgage brokers who work with international clients.
Appoint a lawyer and verify your identity
A Canadian real estate lawyer closes the purchase and registers your title. Brokerages and lawyers must verify your identity and record where your funds come from under Canada’s anti-money-laundering rules. This can be done remotely.
Offer, sign and close from abroad
We show you property by video, and offers are signed electronically. Closing documents can be signed remotely or under a power of attorney, and funds are wired to your lawyer’s trust account.
Set the property up to be held
Appoint a Canadian agent or property manager to handle rent and tax withholding, insure the property, and note the annual vacant home declaration in Toronto.
While you own
Tax on rental income
Rent paid to a non-resident is taxed at source. Your tenant or Canadian agent must withhold 25% of the gross rent and send it to the Canada Revenue Agency. Two elections bring that down to tax on your profit.
| Option | What it does | Timing |
|---|---|---|
| No election | 25% of gross rent is withheld and is your final tax | Each time rent is paid |
| Form NR6 | Your agent withholds 25% of net rent, after expenses, instead of gross | File by January 1 each year or before the first rent is due. A section 216 return is then required by June 30 of the following year |
| Section 216 return | You file a Canadian return on net rental income and recover any excess tax withheld | Within two years of the end of the year the rent was paid |
Vacant home tax in Toronto
Owners of residential property in Toronto must declare every year, by April 30, whether the home was occupied. A home declared or deemed vacant is taxed at 3% of its assessed value. A property left undeclared is treated as vacant.
When you sell
Tax on a sale
A non-resident who sells Canadian real estate must notify the Canada Revenue Agency and obtain a certificate of compliance under section 116 of the Income Tax Act.
- Notify the agency within 10 days of closing, or in advance of a planned sale.
- Until the certificate is issued, the buyer is required to hold back part of the sale price, generally 25%. Applying early shortens the wait for your money.
- The gain is taxable in Canada and is reported on a Canadian return for the year of sale. Your home country may also tax it, with relief under a tax treaty where one applies.
An accountant who works with non-residents should handle the certificate and the return. We can introduce one.
Questions
What buyers abroad ask us
Do I need to be in Canada to buy?
No. Viewings, offers, financing and closing can all be completed from abroad.
Can I buy through a company?
You can, but it does not change which rules apply. A privately held corporation controlled by non-Canadians is treated as a foreign buyer under both the federal ban and Ontario’s Non-Resident Speculation Tax.
Does owning property give me the right to live in Canada?
No. Buying property does not give you immigration status or a right to stay.
What if I become a permanent resident after I buy?
Ontario offers a rebate of the Non-Resident Speculation Tax to buyers who become permanent residents within four years of the purchase and meet the conditions, which include living in the home as a principal residence.
Will the foreign buyer ban end in January 2027?
It is scheduled to expire on January 1, 2027. The federal government has said it is reviewing its options and has not announced a decision. We update our overview page when that changes.
What can I buy right now?
Buildings with four or more units, vacant land and development sites, and property outside census metropolitan areas and census agglomerations are outside the ban. See multi-unit and multifamily investments.
Investor consultation
Get a plan for buying from where you are
Tell us your country, your status in Canada and what you want to own. We will set out what you can buy, the full cost and the steps in order.
- A 30-minute call by video, phone or WhatsApp, in your time zone
- A straight answer on what you can buy today and what it costs
- No obligation. We use your details only to respond to you
Prefer to message? WhatsApp 647-462-2928 or email sales@ayatrealty.com.
Sources and notes
- CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Canadian Mortgage Trends, October 7, 2026: Ottawa reviews foreign homebuyer ban as 2027 expiry approaches
- Government of Ontario: Non-Resident Speculation Tax
- City of Toronto: Municipal Land Transfer Tax rates and fees, including the Municipal Non-Resident Speculation Tax
- Canada Revenue Agency: T4144, Income Tax Guide for Electing under Section 216
- Canada Revenue Agency: Disposing of or acquiring certain Canadian property
- City of Toronto: Vacant Home Tax
Last reviewed: October 12, 2026. Rules, rates and deadlines change, and several items on this page are awaiting federal or provincial decisions. This page is general information, not legal, tax or financial advice. Confirm your own position with a Canadian real estate lawyer and accountant before you commit. Ayat Realty Group, Best Sellers Realty Inc. Brokerage.