The government of Canada passed the Ban on the Purchase of Canadian Residential Property by Non-Canadians Act thatt 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.