The government of Canada passed the Ban on the Purchase of Canadian Residential Property by Non-Canadians Act that went into force on 1 January 2023 and is stated to be in effect for two years. The Canadian Employee Relocation Council (CERC) submitted a proposal to CMHC outlining their concerns and requested exceptions related to the relocation industry, but all exception requests were denied.
Notable Impacts on Global Mobility Programs
- Relocation Management Companies (RMC) incorporated outside of Canada will not be able to offer any RMC home sale programs such as Guaranteed Buy Outs or Buyer Value Options in Canada:
- NEI will work with our clients to update their home sale program offerings in Canada.
- A modification of home sale programs to a Direct Reimbursement program will allow clients to continue offering some type of home sale assistance:
- This type of program is non-taxable in Canada. However, if the move is cross-border, there may be tax consequences for the reimbursement.
- Employees currently working in Canada can only purchase a home if they:
- Have a valid work permit.
- Worked in Canada for three straight years out of the last four, and
- Filed a Canadian tax return three out of the four years.
Should anything change, NEI will continue to provide our clients with updates and further policy recommendations.
The government of Canada passed the Ban on the Purchase of Canadian Residential Property by Non-Canadians Act that went into force on 1 January 2023 and is stated to be in effect for two years. The Canadian Employee Relocation Council (CERC) submitted a proposal to CMHC outlining their concerns and requested exceptions related to the relocation industry, but all exception requests were denied.
Notable Impacts on Global Mobility Programs
- Relocation Management Companies (RMC) incorporated outside of Canada will not be able to offer any RMC home sale programs such as Guaranteed Buy Outs or Buyer Value Options in Canada:
- NEI will work with our clients to update their home sale program offerings in Canada.
- A modification of home sale programs to a Direct Reimbursement program will allow clients to continue offering some type of home sale assistance:
- This type of program is non-taxable in Canada. However, if the move is cross-border, there may be tax consequences for the reimbursement.
- Employees currently working in Canada can only purchase a home if they:
- Have a valid work permit.
- Worked in Canada for three straight years out of the last four, and
- Filed a Canadian tax return three out of the four years.
Should anything change, NEI will continue to provide our clients with updates and further policy recommendations.
