A real estate sign stands in front of a house in Vaughan, a suburb in Toronto, May 24, 2017. (REUTERS/Mark Blinch)
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The federal government has set out exceptions to legislation that will ban foreign investors from buying non-recreational residential property coming next month.
The exemptions, included in the new regulations announced by the Liberal government on Dec. 21, will be used to implement the Prohibition on the Purchase of Residential Property by Non-Canadians Act, starting Jan. 1, 2023.
The Act, enforceable for two years before it automatically repeals, does not apply to property acquired by foreigners “resulting from death, divorce, separation or a gift.”
A regulatory notice issued Wednesday by the Trudeau government added that the exemptions apply for temporary residents “that are demonstrably working toward permanent residency” by studying or working in Canada, as first reported by Blacklock’s Reporter.
“These also include exceptions for certain vulnerable populations, such as people fleeing international crises, as well as diplomats, consular staff and members of international organizations residing in Canada,” said the notice, titled “Regulatory Impact Analysis Statement.”
International students can spend a maximum of $500,000 on a property and must have spent most of the last five years in the country under the new regulations. Workers must have worked and filed tax returns in Canada for at least three out of the previous four years.
Recreational property including cabins, cottages, and vacation homes are also exempted from the law, which was passed by Parliament on June 23.
Non-Canadians not covered under the exemptions will be subjected to a $10,000 fine if they purchase a residential property in violation of the legislation.
The regulatory notice on Dec. 21 said it does not know the exact number of foreign buyers.
“Data collection on foreign buyers is limited and specific figures on foreign buyer activity are not available at the national level or in most provinces and territories,” it said.
Marnie Cathcart contributed to this report.