On February 4, 2024, the federal government announced its intent to extend the prohibition on the purchase of residential property by non-Canadians for a further two years. The extension will result in the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the "Act") and the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (the "Regulations") being in force until at least January 1, 2027 (rather than January 1, 2025)1.
No additional amendments to the Act or the Regulations have been proposed at the time of this post. Therefore, as we have previously noted2, the Act and Regulations (as amended in March 2023) are more limited in scope than when they were originally proposed and are focused on typical residential housing.
However, there will still be transactions and investors impacted by the Act and Regulations and it is strongly recommended that anyone who is potentially impacted seek legal advice immediately. The McCarthy Tétrault real property, tax, and international trade and investment groups are available to assist parties across Canada and can be reached at the contacts below.
Footnotes
1. Government Announces Two-year Extension to Ban on Foreign Ownership of Canadian Housing, online: https://www.canada.ca/en/department-finance/news/2024/02/government-announces-two-year-extension-to-ban-on-foreign-ownership-of-canadian-housing.html
2. Major Changes to Prohibition on Non-Canadians Acquiring Residential Property, online: https://www.mccarthy.ca/en/insights/blogs/lay-land/major-changes-prohibition-non-canadians-acquiring-residential-property and New Canadian Underused Housing Tax and Prohibition on the Purchase of Residential Property by Non-Canadians Act Legislation, online: https://www.mccarthy.ca/en/insights/blogs/mccarthy-tetrault-tax-perspectives/new-canadian-underused-housing-tax-and-prohibition-purchase-residential-property-non-canadians-act-legislation
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