VANPLEX
David Babakaiff
Written by David Babakaiff — Co-Founder, VanPlex | 25+ Years BC Construction Last reviewed: June 2026

Rules & Tax | Foreign Buyer Ban

Does the Foreign Buyer Ban Apply to Canadians Living Abroad?

Short answer: no. The federal foreign buyer ban targets non-Canadians. If you are a Canadian citizen or permanent resident, the ban does not apply to you — no matter which country you live in. Here is the detail, straight from the law.

Key Takeaways

  • ✓The ban applies to non-Canadians only. Citizens and permanent residents are excluded from that definition.
  • ✓Where you live does not matter. A citizen in Hong Kong has the same rights as a citizen in Vancouver.
  • ✓The ban only covers property with three or fewer units, so a four-plus-unit multiplex is outside it anyway.
  • ✓The ban is a different rule from the BC foreign buyer tax and from how you are taxed as a non-resident.

Who the Ban Actually Restricts

Exempt

Canadian citizens

You can buy, regardless of where you live in the world. Living abroad does not change this.

Exempt

Permanent residents

Permanent residents are treated the same as citizens under the Act. No restriction applies.

Restricted

Non-Canadians (the actual target)

Foreign nationals and foreign corporations are the group the ban was written for. They face the purchase prohibition with limited exemptions.

The Act defines who counts as a "non-Canadian" and excludes citizens and permanent residents. See the full text of the Act on the Justice Laws website and the CMHC summary.

The Ban in Four Lines

Who it applies to

Non-Canadians only. Citizens and permanent residents are excluded from the definition of "non-Canadian."

What property it covers

Residential property with three or fewer dwelling units — detached houses, semi-detached, and units like condos. Buildings with four or more units are not "residential property" under the Act.

Where it applies

Inside Census Metropolitan Areas and Census Agglomerations. Most of Metro Vancouver is inside one of these areas.

How long it lasts

In force since January 1, 2023 and extended to January 1, 2027.

The ban was first set to expire January 1, 2025, then extended two years to January 1, 2027 — see the Department of Finance Canada announcement.

The Trap: Citizenship Is Not Tax Residency

The most expensive mistake is assuming "I am allowed to buy" means "I will be taxed like a local." Those are two different questions, decided by two different things:

  • 1.Citizenship decides the foreign buyer ban. As a citizen or permanent resident, you are exempt.
  • 2.Tax residency — where your real home and ties are — decides how you are taxed. A citizen who has genuinely settled abroad is usually a non-resident for tax, which triggers extra rules on rent and on sale.

So you can clear the ban easily and still owe withholding on rent and a clearance certificate when you sell. That tax side is covered next.

Best For

  • ✓ Citizens and permanent residents abroad who were worried the ban blocked them — it does not.
  • ✓ Buyers planning a four-plus-unit multiplex, which sits outside the ban entirely.
  • ✓ Anyone who wants the answer traced back to the actual Act, not a forum post.

Usually Fails When

  • ✕ A co-buyer (for example, a spouse) is a non-Canadian — their share can fall under the ban.
  • ✕ You assume clearing the ban also settles your tax — it does not.
  • ✕ You rely on hearsay instead of confirming your own status against the law.

What To Verify Before Spending Money

  • → Your own citizenship or permanent resident status, and that of any co-owner.
  • → Whether the specific property has three or fewer units (covered) or four or more (outside the ban).
  • → Your tax residency, separately, with a cross-border tax advisor.

Frequently Asked Questions

Does the foreign buyer ban apply to Canadian citizens living abroad? +
No. The Prohibition on the Purchase of Residential Property by Non-Canadians Act applies only to non-Canadians. Canadian citizens are not non-Canadians, so the ban does not apply to a citizen, whether they live in Toronto, Dubai, or London. Your citizenship, not your country of residence, is what matters for this rule.
Does the ban apply to permanent residents who live overseas? +
No. Permanent residents of Canada are exempt from the ban and are treated the same as citizens. A permanent resident living abroad can still buy residential property in Canada. Keeping your permanent resident status valid is a separate immigration matter worth confirming, but it does not change the property rule.
I am a citizen abroad — why do people keep telling me I cannot buy? +
Because the news coverage of the "foreign buyer ban" is easy to misread. The headline sounds like it covers anyone outside Canada. It does not. It covers non-Canadians. The confusion is so common that confirming your own status against the law is worth doing once, so you can stop second-guessing it.
Does the ban stop me from building a multiplex? +
No, and there is an extra layer here. The ban only covers residential property with three or fewer dwelling units. A multiplex with four or more units is not even within the definition of residential property under the Act. So a larger multiplex sits outside the ban on two counts: you are an exempt buyer, and it is an exempt property type.
What happens to a non-Canadian who breaks the ban? +
A non-Canadian convicted of breaching the prohibition, or anyone who knowingly helps them, can be fined up to $10,000, and a court can order the property sold. This is one reason to confirm status carefully if ownership will be shared with a non-Canadian spouse or partner.
Is the foreign buyer ban the same as the BC foreign buyer tax? +
No. They are two different things. The federal ban is a purchase prohibition on non-Canadians. The BC additional property transfer tax (often called the foreign buyer tax) is a provincial tax on certain foreign purchasers. Both target non-Canadians, and both generally exempt citizens and permanent residents, but they are separate rules under separate governments.
Do I pay the BC 20% foreign buyer tax if I live abroad? +
No, not as a Canadian citizen or permanent resident. BC’s additional property transfer tax adds 20% on top of the regular transfer tax for foreign nationals and foreign corporations buying in certain areas. Citizens and permanent residents are not foreign nationals, so the 20% does not apply to you, regardless of which country you live in. The only time it appears is when a foreign co-owner is on title, and then it is charged only on that person’s share of the property.
I am a Canadian living in the US, UK, or UAE — do the rules change by country? +
The Canadian rules do not change based on which country you live in. Your right to buy depends on being a citizen or permanent resident, not on your address, so a Canadian in New York, London, or Dubai has the same position as one in Vancouver. What does change is the tax in your country of residence and any tax treaty between it and Canada. So the buying side is the same everywhere; it is the foreign-side tax that is worth checking locally.

Keep Going

Non-Resident Tax Guide →
Now that ownership is settled, the tax that follows you abroad: rental withholding, the Section 116 clearance certificate, and two vacancy taxes.
The Multiplex Opportunity →
Why a four-plus-unit build sits outside the ban entirely — and what BC's new rules let you do on one lot.

Official Sources Referenced

Justice Laws: Prohibition on the Purchase of Residential Property by Non-Canadians Act (S.C. 2022, c. 10, s. 235)
https://laws-lois.justice.gc.ca/eng/acts/P-25.2/page-1.html
CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act
https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/consultations/prohibition-purchase-residential-property-non-canadians-act
Department of Finance Canada: Two-year extension to the ban on foreign ownership of Canadian housing
https://www.canada.ca/en/department-finance/news/2024/02/government-announces-two-year-extension-to-ban-on-foreign-ownership-of-canadian-housing.html
Province of BC: Additional property transfer tax for foreign entities (the 'foreign buyer tax')
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/additional-property-transfer-tax

This page is general information, not legal or immigration advice. The Act and its regulations can change. Confirm your status and the property type with a BC-licensed real estate lawyer before relying on any exemption.

See What Your Vancouver Lot Could Become

Enter a Vancouver-area address to see the multiplex potential before you spend anything on drawings — from wherever you are in the world.