Following the precedent set by Ontario's increase on the Non-Resident Speculation Tax to address the housing shortage created in part by foreigners who buy homes in the province, Canada has proposed to ban foreign home buyers who are not permanent residents or citizens from buying residential homes for 2 years.
To address the housing marketing crisis with prices rising over 20% the past year, increased rental rates and decreasing inventory, Finance Minister Chrystia Freeland announced the two-year ban on foreign home buying on April 7, plus higher taxes for people who sell their homes within a year. The ban has exceptions for permanent residents and foreign students:
- Refugees, some international students and people with work permits would be exempt from the foreign homebuyer ban.
- Permanent residents and new citizens are exempt from the non-resident ban.
- Anyone buying and selling a property within a year "would be considered to be flipping properties and would be subject to full taxation on their profits."
- A new tax-sheltered way for Canadians to save up to buy a home will allow contributions up to $8,000 per year.
The foreign buyer ban would not be applied to recreational and vacation property.
Do You Want to Become a Canadian Citizen or Permanent Resident?
Canadian permanent residents and citizens are entitled to privileges and protections that are not available to non-residents. Canadian permanent residents can:
- get many of the social benefits that Canadian citizens receive, including health care coverage and education
- live, work or study anywhere in Canada
- apply for Canadian citizenship
- Receive protections under Canadian laws and the Canadian Charter of Rights and Freedoms
There are many pathways to becoming a permanent resident including:
- Economic and Business Immigration
- Express Entry
- Parent and Grandparents Program
- Family Class Sponsorship
Canadian citizenship gives you additional rights, benefits and protections that are not available to Canadian Permanent Residents, including the right to vote and the right to hold public office. Citizens are no longer required to meet residency and other requirements of Permanent Residents.
Do You Have Questions About Becoming a Canadian Citizen or Permanent Resident?
Ackah Business Immigration Law is a full-service immigration law firm for business and individual immigration, and has offices in Toronto, Calgary and Vancouver. Contact Ackah Law today at (403) 452-9515 or email us directly.