Canada's ban on non-Canadian buyers is scheduled to lift on January 1, 2027. Photo: Pexels.
Canada's ban on residential purchases by non-Canadians — the Prohibition on the Purchase of Residential Property by Non-Canadians Act — is currently scheduled to expire on January 1, 2027. As of now, no further extension has been announced, though Ottawa has extended the ban twice before, so another extension isn't off the table.
For realtors, this is worth getting ahead of. Not because foreign buyers are about to flood the market — the evidence says their overall share is modest — but because if you start working with non-resident buyers or sellers again, there are tax and record-keeping realities that catch people off guard. Here's what actually matters for the books.
First, what's changing (and what isn't)
The federal ban is what's set to lift. That's the rule that has prohibited non-Canadians from buying residential property in most cities since 2023. What is not changing automatically are the taxes that apply to non-resident transactions — and those are the part that lands on your clients' returns.
Ontario's Non-Resident Speculation Tax still applies
Even once the federal ban lifts, Ontario's Non-Resident Speculation Tax (NRST) — a 25% tax on the purchase of residential property by foreign nationals and foreign corporations across the province — remains in force. A buyer who assumes "the ban is gone, so I can just buy" without budgeting for a 25% provincial tax on top of their purchase price is in for a shock. If you have clients in this category, the NRST is a number they need in front of them from day one.
Selling on behalf of a non-resident? Know the withholding rule
The flip side matters too. When a non-resident sells Canadian real estate, the Income Tax Act requires a withholding and clearance-certificate process. Until the seller obtains a clearance certificate from the CRA, the buyer is generally required to withhold a portion of the purchase price (commonly 25% of the gain or proceeds, depending on the property). Deals have been delayed — and buyers left personally exposed — because nobody flagged this early. If you represent either side of a transaction involving a non-resident, this needs to be on the radar before closing, with the accountant and lawyer looped in.
Why this is a bookkeeping conversation
Whether you're representing non-resident clients or simply fielding more of these questions, the common thread is documentation:
- Keep the closing details clean. NRST paid, withholding amounts, and clearance-certificate status are all figures your client (and their accountant) will need at tax time — not something to reconstruct months later.
- Track your own referral and commission income from these deals as you would any other, but be aware the paperwork trail on non-resident transactions is longer and worth keeping tidy.
- Point clients to the right professional early. Non-resident tax questions are firmly in CPA and real-estate-lawyer territory. Your job is to raise the flag in time; theirs is to file it correctly.
The market-timing question
Will the ban lifting move prices in 2026? Most likely only at the margins, and mostly as anticipation — some positioning in pre-construction and higher-end segments late in the year. Interest rates and supply remain far bigger drivers. And with the possibility of another extension, plenty of buyers will wait for certainty before acting. The practical takeaway: don't overhaul your business around it, but do get comfortable with the non-resident tax basics so you're ready if the conversation comes up.
This article is general information, not tax, accounting, or legal advice. Tax rules for non-residents are complex and change frequently — always confirm specifics with a qualified CPA or real estate lawyer before acting.