Buying Property in Quebec as a Non-Resident: Exceptions to the Foreign Buyer Ban

The federal government’s Prohibition on the Purchase of Residential Property by Non-Canadians Act has introduced significant complexity for foreign nationals seeking to invest in Canadian real estate. For many prospective buyers, the Act appears to be an insurmountable barrier, creating widespread confusion and halting investment plans. The general discourse often revolves around the ban itself, with little focus on the critical exemptions that remain available, particularly within the unique legal and geographical landscape of Quebec.

While the prohibition is the default position, it is not absolute. Navigating Canada’s foreign buyer ban in Quebec is not about finding ambiguous ‘loopholes,’ but about mastering a precise set of legal and financial criteria. A number of statutory exemptions exist, pertaining to the property’s location, the buyer’s residency status, and their familial relationships. Understanding the specific mechanics of these exemptions is paramount for any non-resident considering a property purchase in the province between now and the Act’s potential expiry in 2027.

This guide moves beyond generalities to provide a lawyer’s-level analysis of eligibility, documentation, and strategic implications. It dissects the specific legal mechanics of each major exemption available to non-residents in Quebec, from recreational properties in the Laurentians to the specific requirements for work permit holders and those purchasing with a Canadian partner. The objective is to provide a clear, actionable framework for ensuring statutory compliance while achieving your real estate goals in La Belle Province.

This article provides a detailed breakdown of the legal and financial considerations for non-resident buyers in Quebec. The following sections outline the specific exemptions to the federal ban, the provincial tax landscape, and crucial steps in the closing process.

Recreational properties: Which Quebec municipalities are exempt from the ban?

The federal prohibition on non-Canadian property purchases applies specifically to residential properties located within a Census Metropolitan Area (CMA) or a Census Agglomeration (CA). This geographical limitation is the most significant exemption, as it excludes a vast number of properties in recreational and rural areas. According to official guidelines, the CMHC defines Census Metropolitan Areas as having at least 100,000 total population with a core of 50,000 or more, while CAs require a core population of at least 10,000. Any property situated outside these defined zones is exempt from the ban.

This effectively opens up many of Quebec’s most desirable vacation destinations to foreign buyers. For example, the popular ski resort municipality of Mont-Tremblant is located outside any CMA or CA, making its chalets and condos fully accessible to non-Canadians. Similarly, large portions of the Laurentians, the Eastern Townships (Estrie), and the Charlevoix region are exempt. These areas are replete with lakeside cottages, ski-in/ski-out properties, and country homes that fall under the category of recreational property, which remain a viable investment for foreign nationals.

However, it is incumbent upon the purchaser to perform due diligence. The boundaries of CMAs and CAs can be complex and are not always intuitive. A property that seems rural may still fall within the catchment area of a nearby city. Therefore, verifying a specific property’s status using the official government tool is a mandatory step before proceeding with an offer. This verification provides the necessary proof for the Quebec notary (*notaire*) who will ultimately execute the deed of sale.

Work permit holders: How many tax returns must you file to be eligible to buy?

For temporary residents in Quebec, the ability to purchase a home is a significant exception to the foreign buyer ban. Initially, the rules were stringent, requiring several years of physical presence and tax history in Canada. However, amendments to the regulations have substantially relaxed these requirements, making property ownership more accessible for those with a valid Canadian work permit. The focus has shifted from past tax history to future intention and current legal status in the country.

The previous requirement to have filed multiple years of Canadian tax returns has been removed. Under the current rules, which are in effect until 2027, the primary condition is the validity of the work permit itself. At the time of purchase, a temporary resident must hold a work permit or an authorization to work in Canada that is valid for at least 183 more days. This change eliminates the long waiting period that previously barred newcomers from entering the property market. Furthermore, the prior condition of having been physically present in Canada for a minimum number of days per year has also been rescinded. A non-resident is still limited to the purchase of one residential property.

This table illustrates the significant shift in eligibility criteria for work permit holders before and after the regulatory amendments.

The following table, based on the amended regulations, highlights the key changes that have made it easier for work permit holders to purchase property in Quebec. It is crucial to consult the official text of the amended regulations for precise legal definitions.

The common-law exception: Can a non-resident buy if their spouse is Canadian?

Yes, a non-resident can purchase a residential property in Quebec if the purchase is made jointly with their spouse or common-law partner who is a Canadian citizen, a person registered under the *Indian Act*, or a permanent resident. This is a clear and powerful exemption within the Act that facilitates property ownership for international couples. The key legal requirement is that the acquisition of the property must be made with the eligible Canadian partner, meaning both names will typically appear on the deed of sale.

The official guidelines from the Canada Mortgage and Housing Corporation (CMHC) explicitly state this provision. As the CMHC clarifies in its official guidance:

Non-Canadian spouses and common-law partners purchase residential property in Canada with their spouse or common-law partner who is a Canadian citizen, a person registered under the Indian Act, a permanent resident or a non-Canadian for whom the prohibition does not apply

– CMHC, Prohibition on the Purchase of Residential Property by Non-Canadians Act – Official Guidelines

For the purpose of this exemption, Quebec law and federal regulations recognize both legally married spouses and common-law partners. However, for common-law relationships, the burden of proof is higher. The purchasing couple must be prepared to provide substantial evidence of their relationship’s authenticity and duration to the presiding notary. This typically involves demonstrating at least 12 months of cohabitation in a conjugal relationship. Documentation is critical, and couples should proactively gather joint financial records, lease agreements, and government correspondence to present a solid case and avoid delays in the transaction.

The 20% penalty: Does Quebec have a provincial foreign buyer tax on top of the federal ban?

No, Quebec does not have a provincial foreign buyer tax. This provides the province with a significant jurisdictional advantage compared to other major Canadian real estate markets. While the federal Act imposes a ban on certain purchases, it does not create a federal tax. The substantial taxes often associated with foreign buyers are provincially mandated, and Quebec has opted not to implement one. This stands in stark contrast to other provinces where such taxes represent a major financial consideration for non-resident purchasers.

For context, an eligible non-resident purchasing property in British Columbia would face a 20% Foreign Buyer Tax, while in Ontario, the equivalent is a 25% Non-Resident Speculation Tax (NRST). On a $1,000,000 property, this amounts to an additional $200,000 or $250,000 in upfront costs, respectively. In Quebec, this additional provincial tax is $0. This absence of a provincial penalty makes Quebec a financially more attractive market for eligible foreign investors and buyers who meet the exemption criteria of the federal Act.

The following table, with figures based on recent tax analysis for an illustrative $1M property purchase, demonstrates the stark difference in total upfront tax burden for an eligible foreign buyer across major Canadian cities.

The total tax burden comparison demonstrates Quebec’s competitive edge. As confirmed by recent 2025 tax analysis from financial firms, the lack of a provincial foreign buyer tax in Quebec creates a substantial cost saving.

The financing hurdle: Why Canadian banks require 35% down from non-residents

Securing financing is often the most significant practical hurdle for non-residents purchasing property in Quebec, even when they are exempt from the federal ban. Canadian financial institutions universally categorize non-resident borrowers as higher risk. This classification is not arbitrary; it is based on the lender’s limited recourse in the event of a mortgage default. It is substantially more difficult and costly for a Canadian bank to pursue legal action against a borrower residing outside of Canada. To mitigate this risk, lenders impose stricter requirements, the most prominent of which is a larger down payment.

While Canadian residents can often secure mortgages with down payments as low as 5-20%, a minimum 35% down payment is the standard requirement for non-resident buyers. This substantial capital outlay serves as the bank’s primary security measure. Furthermore, because non-residents do not have a Canadian credit history, they are ineligible for mortgage default insurance from providers like the CMHC, which is what allows residents to make smaller down payments. The bank must therefore carry 100% of the loan risk on its own books.

Beyond the down payment, non-residents must prepare a comprehensive file to prove their financial stability to Canadian lenders. This includes opening a Canadian bank account well in advance, providing an international credit report, and obtaining detailed employment verification. Working with a Quebec-based mortgage broker who specializes in non-resident financing is highly advisable, as they have established relationships with lenders and understand the specific documentation required to build a successful application. These brokers can navigate the offerings of both major ‘A-lenders’ and alternative ‘B-lenders’ to find the most suitable terms.

Why Montreal’s transfer duty rates are higher than the provincial standard

All property purchasers in Quebec are subject to a property transfer duty, colloquially known as the “Welcome Tax” (*taxe de bienvenue*). However, the City of Montreal is legally permitted to levy this tax at a higher rate than the rest of the province. This special status was granted to help the city finance its extensive and costly municipal services, most notably the Société de transport de Montréal (STM) public transit system and other critical urban infrastructure.

The tax is calculated on a marginal basis, with rates applied to different portions of the property’s value. While the initial brackets are consistent across Quebec, Montreal introduces higher tax brackets for more expensive properties. For example, as of 2025, any portion of a property’s value above $552,300 is taxed at a significantly higher rate in Montreal compared to a city like Laval or Quebec City. This creates a noticeable difference in closing costs. Based on 2025 Montreal transfer duty calculations, the Welcome Tax on an $800,000 property in Montreal would be $12,892, compared to just $9,142 in other Quebec municipalities—a difference of over $3,750.

The following table, based on the official rates provided by the City of Montreal, clearly illustrates the difference in marginal tax rates between Montreal and the rest of the province. For an exact calculation, it is always best to consult the City of Montreal’s official documentation.

For investors, this higher one-time cost must be factored into any Return on Investment (ROI) calculation. While a property in an off-island suburb might offer a slightly better initial return due to lower closing costs, Montreal properties often benefit from higher long-term appreciation rates and rental premiums, which can offset the higher upfront tax burden. This is a strategic trade-off between initial capital outlay and potential long-term growth.

Asset protection: Does a corporation actually shield your personal home from tenant lawsuits?

A common question from property investors is whether holding a residential property within a corporation can bypass the foreign buyer ban or offer superior asset protection. Pursuant to the Act’s regulations, this strategy is not a viable method for circumventing the prohibition. The Act explicitly defines a “non-Canadian” to include any Canadian corporation that is controlled by a non-Canadian. Control is defined as 10% or more of direct or indirect ownership of equity or voting rights. Therefore, a foreign buyer cannot simply create a Canadian company to purchase a property that they would be barred from buying directly.

Even for eligible buyers, using a corporation for asset protection on a single residential property in Quebec is often not the most efficient strategy from a legal and financial perspective. While a corporation does create a legal separation between personal and business assets (the corporate veil), this protection comes at a high cost. It involves significant annual administrative expenses for legal and accounting services (typically $2,000-$5,000), complex tax filing requirements, and the risk of double taxation on rental income—once at the corporate level and again when profits are distributed to the owner.

The consensus among legal professionals in Quebec is that robust liability insurance is a more practical and cost-effective shield for individual property investors than incorporation.

Calculating Quebec’s Welcome Tax: How to Budget for Transfer Duties on Your Closing Day

Budgeting for closing costs is a critical step for any property purchase in Quebec, and for a non-resident buyer, it requires particular attention to detail. The single largest closing cost is typically the property transfer duty, or Welcome Tax. This tax is paid by the buyer and calculated based on the purchase price of the property. The calculation is on a marginal basis, meaning different rates apply to different portions of the property’s value. It is the legal responsibility of the Quebec notary to calculate the exact amount owed and remit it to the appropriate municipality on the buyer’s behalf.

As the OACIQ, the Quebec Professional Association of Real Estate Brokers, explains, the notary’s role is central and impartial:

The Quebec notaire is a neutral public officer who drafts the deed of sale, ensures title is clear, and is responsible for calculating and remitting the Welcome Tax on behalf of the buyer

– OACIQ, Quebec Professional Association of Real Estate Brokers

Beyond the Welcome Tax, a buyer must budget for a range of other expenses. These include the notary’s own professional fees, title insurance to protect against defects in the property’s title, a property inspection (highly recommended for Quebec’s older housing stock), and adjustments for property taxes paid for the remainder of the year. For non-francophone buyers, costs for certified translation of legal documents may also be necessary. As a general rule, a non-resident buyer should set aside an amount equivalent to 2% to 4% of the purchase price to cover all of these closing costs comprehensively.

To ensure full statutory compliance and a successful transaction, the next logical step is to consult with a Quebec-based notary or real estate lawyer to assess your specific eligibility and guide you through the purchasing process.