Foreign buyers may also face greater tax implications when buying a home in Canada.   Certain provinces impose a Non-Resident Speculation Tax, also known as a Foreign Buyers’ Tax or an Additional Property Transfer Tax.   In Ontario, the Non-Resident Speculation Tax is 25% of the purchase price of the residential property, while foreign buyers in British Columbia are taxed 20% of the purchase price in certain regions. These taxes are in addition to land transfer taxes and can be a significant additional cost for buyers.  To further alleviate Canada’s housing crisis, the federal government created the Underused Housing Tax which is an annual one per cent tax for vacant or underused properties. The tax targets foreign investors, as well as some Canadian owners, such as certain trustees and corporations that might buy up property without using it or providing housing for others.  Given Canada’s regulations, taxes and mortgage approval process, buying residential property in Canada can be challenging for non-residents. Even if you’re a foreign buyer who falls under a regulatory exclusion, you’ll need to consider the cost and complexity of home ownership before making the leap.