In a previous articlewe took stock Law Prohibiting the Acquisition of Residential Real Estate Outside Canadaeffective January 1, 2023, which aims to temporarily discourage a large proportion of foreign investment in the residential real estate sector in Canada in 2023-2024.
On March 27, 2023, the Secretary of State for Housing and Diversity and Inclusion announced a series of changes to the provisions of the Act, aimed at “increasing flexibility for newcomers and businesses looking to increase housing availability in Canada.”
The new developments essentially consist of four types.
Regarding temporary workers
Work permit holders with at least 183 days validity at the time of transaction may purchase a dwelling if it is the only dwelling they own in Canada. The requirements for previous work experience and tax returns are lifted.
Regarding vacant lots
The announced changes now allow non-Canadians to purchase vacant land designated for residential or mixed use.
Introduction of an exception for planning purposes
This exception applies to foreign residents as well as certain companies controlled by non-Canadians.
Raising the threshold for foreign control of acquiring companies
The tolerated threshold for a non-Canadian’s control of a private company or corporation formed under federal/provincial statutes increases from 3% to 10%.
All of these changes came into effect on March 27, 2023.
Photo: Anna Mircea
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