Updates to Canadian Foreign Homebuyer and Underused Housing Tax Updates
What has Changed:
As of March 27, 2023, the following exceptions to the Foreign Buyer ban came into effect:
Non-Canadians on a work permit or who are authorized to work in Canada can purchase residential property if they have at least 183 days or more remaining on their work permit or work authorization, and have not purchased more than one property.
Non-Canadians and foreign businesses can now also purchase residential property if they intend to develop it. Repairs, renovations, or remodelling the property will not be considered.
Non-Canadians can now purchase vacant land zoned for residential and mixed-use and use it for any purpose.
The control threshold has been increased from 3% to 10% for privately held corporations or privately held entities that are formed under the law of Canada or a province.
The Canada Revenue Agency (CRA) also has waived late fees and interest on the Underused Housing Tax (UHT), which requires non-resident, non-Canadians to pay one percent of the value of a vacant or unused property in Canada. They will now have until Oct. 31 to file UHT returns and payments without penalty.