Non-Canadians Owning Real Estate in Alberta: What You Need to Know


In recent years, the issue of foreign ownership of real estate in Canada has garnered significant attention, particularly in Alberta, one of the country’s most attractive markets for real estate investment. With its thriving economy, vibrant cities, and natural beauty, Alberta is a prime location for international buyers. However, prospective non-Canadian buyers should be aware of the legal regulations governing property ownership in the province. If you’re considering purchasing real estate in Alberta as a non-Canadian, here’s a breakdown of the key legal considerations you should know.

1. Who Is Considered a “Non-Canadian”?

In Alberta, a non-Canadian is defined as an individual, corporation, or entity that is not a Canadian citizen, permanent resident, or a corporation or entity incorporated under Canadian law.

2. The Impact of the Prohibition on Foreign Ownership in Alberta

As of 2023, Alberta has implemented a specific regulation that directly impacts non-Canadians wishing to own property in the province. The Alberta Foreign Ownership of Land Act restricts non-Canadians from purchasing residential real estate in certain areas, particularly in urban centers and residential neighborhoods. These restrictions aim to prevent non-Canadians from disproportionately influencing the local housing market and making properties less accessible to residents.

The key provisions include:

  • Non-Canadians are prohibited from purchasing residential properties unless the land is used for specific business purposes or is part of a broader development plan.
  • Non-Canadians are subject to restrictions on the purchase of vacant land. Vacant land owned by non-Canadians must be developed within a specific timeframe or it may be subject to penalties or forced sale.

3. Exceptions to the Rules

While there are restrictions in place, there are exceptions to these rules. Non-Canadians can still purchase property in Alberta under certain conditions, including:

  • Non-residential properties: Non-Canadians can freely purchase commercial properties, industrial lands, and agricultural properties.
  • Investment in Development Projects: Foreign nationals involved in large-scale development or industrial projects may be permitted to acquire land as part of their project’s growth and expansion.
  • Permanent Residents and Temporary Residents: Foreign nationals who have status as permanent residents or temporary residents (with certain conditions) may also be able to purchase residential properties under more relaxed rules.

4. Key Considerations for Non-Canadians

If you’re a non-Canadian interested in purchasing property in Alberta, here are a few things to keep in mind:

  • Due Diligence: Conducting thorough research before purchasing is essential. Check whether the property you are interested in falls within the areas impacted by foreign ownership restrictions.
  • Tax Implications: Non-Canadians may be subject to different tax rules when buying property in Alberta, including a potential foreign buyer tax. It’s important to understand these implications before proceeding with the purchase.
  • Financing: Non-Canadian buyers may face additional challenges when securing financing for real estate. Many Canadian financial institutions have specific policies regarding mortgage lending to non-residents. It’s advisable to consult with a mortgage broker who specializes in foreign investments.
  • Land Transfer Fees and Other Costs: Be aware of the costs associated with purchasing property, such as land transfer taxes, registration fees, and legal fees, which may vary depending on the type of property and the specific area within Alberta.

5. Working with a Real Estate Lawyer

Navigating the complexities of real estate ownership in Alberta can be challenging, especially for non-Canadian buyers. That’s why having an experienced real estate lawyer on your side is crucial. A lawyer can help you understand the regulations surrounding non-resident property ownership.

While non-Canadians can still purchase real estate in Alberta, the rules governing such transactions are subject to specific restrictions and conditions. To ensure a smooth buying process, it’s important to work with legal professionals who can guide you through the process and help you comply with the applicable laws. If you are a non-Canadian interested in acquiring real estate in Alberta, do not hesitate to contact our experienced team at Song Law Office to discuss your options and ensure your investment is secure.