Non-Resident Residential Real Estate Investment: Alberta vs British Columbia

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For non-residents investing in Canada, contact our law firm at Chris@NeufeldLegal.com - 403-400-4092 / 905-616-8864

For non-resident investors, choosing between Alberta and British Columbia is heavily impacted by the differing regulatory and fiscal environments that each of the provinces have created, which is directly added to the comparative government-imposed costs that a non-resident incurs when acquiring real estate in British Columbia. And even though British Columbia is viewed as the entry point for many from the Far East, Alberta has emerged as a high-growth alternative with significantly fewer barriers to entry (constraints currently remain in place until January 1, 2027, under the the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, which currently creates an added layer of legal navigation as between exempt and non-exempt localities and property types (more on the Prohibition)).

The most immediate financial distinction for a non-resident investor is the entry cost associated with provincial transfer taxes. Alberta is renowned for being one of the few provinces without a traditional Land Transfer Tax, instead charging a modest Land Titles registration fee that typically totals just a few hundred dollars. In sharp contrast, British Columbia imposes a tiered Property Transfer Tax starting at 1% on the first $200,000 and rising to as high as 5% for portions of a purchase price exceeding $3 million. For a $1 million investment, an investor in Alberta might pay roughly $1,050 in registration fees, whereas the same purchase in British Columbia would trigger at least $18,000 in standard transfer taxes alone.

Beyond standard transfer taxes, British Columbia targets foreign capital specifically through its Additional Property Transfer Tax, often referred to as the "Foreign Buyer Tax." This tax adds an immediate 20% surcharge on the fair market value of residential property purchases by foreign nationals or foreign-controlled corporations in designated areas like Metro Vancouver, the Capital Regional District, and the Fraser Valley. Alberta currently has no such surcharge for residential properties, though it does maintain regulations regarding the total acreage of "controlled land" (agricultural or recreational land) a non-resident can own. This makes the upfront "cash-to-close" significantly lower in Alberta, allowing investors to preserve more capital for the down payment or property improvements.

The ongoing "holding costs" also differ significantly due to British Columbia’s aggressive Speculation and Vacancy Tax (SVT). In BC, non-resident owners of residential property in designated urban zones must pay an annual tax that, as of 2026, has risen to 3% of the property's assessed value unless the home is rented out for at least six months of the year. Alberta has no provincial vacancy or speculation tax, meaning a non-resident can leave a property vacant or use it intermittently without facing a dedicated annual penalty. While Vancouver also has a municipal "Empty Homes Tax" that can add another 3% annually, Alberta’s major cities like Calgary and Edmonton have steered clear of such measures, favoring a more laissez-faire approach to property ownership.

From a management and cash-flow perspective, the regulatory environment for landlords is notably more flexible in Alberta than in British Columbia. British Columbia enforces strict rent control, limiting annual rent increases to a percentage set by the provincial government, which often trails behind the actual inflation of maintenance and utility costs. Alberta, conversely, does not have rent control; landlords are free to increase rent to market rates once per year, provided they give proper notice. This allows Alberta-based investments to more easily achieve "neutral" or "positive" cash flow in a high-interest-rate environment, whereas BC investments often rely more heavily on long-term capital appreciation to offset monthly operating deficits.

Property tax structures also offer a "rate versus value" trade-law. On the surface, property tax rates (mill rates) in Alberta’s major cities often appear higher (frequently ranging between 0.6% and 0.7%), compared to Vancouver’s historically low rates of approximately 0.3%. However, because property values in British Columbia are significantly higher than in Alberta, the actual dollar amount paid in annual municipal taxes is often comparable or even higher in BC for a similar type of dwelling. Furthermore, the absence of a Provincial Sales Tax (PST) in Alberta reduces the cost of property management, repairs, and professional services by 7% compared to British Columbia, further padding the investor's bottom line.

For knowledgeable and experienced tax, investment and corporate law representation for non-residents looking to invest in Canada, whether through active business enterprises, passive income investments or real estate investments, we welcome you to contact our law firm for strategic legal advice to optimize your commercial interests in Canada at Chris@NeufeldLegal.com or call 403-400-4092 / 905-616-8864.

Comparative Residential Real Estate Investment - Alberta vs. British Columbia (2026)

Feature	Alberta (e.g., Calgary, Edmonton)	British Columbia (e.g., Vancouver)
Initial Land Transfer Tax	$0 (no provincial transfer tax)	1% - 5% (tiered based on value)
Foreign Buyer Surcharge	None	20% of Fair Market Value
Closing Costs ($1M property)	approx. $1,050 (registration fees only)	approx. $218,000+ (PTT + foreign surcharge)
Annual Vacancy Tax	None	3% of assessed value (if vacant)
Rent Control	No Limit (market-based)	2.3% (capped for 2026)
Provincial Sales Tax	0%	7% (impacts service & management costs)
Landlord Environment	Pro-Landlord / Flexible	Strict Tenant Protections

Real Estate Investment Comparatives of key Canadian provinces - Residential Real Estate: Alberta vs Ontario, Alberta vs British Columbia; Commercial Real Estate: Alberta vs Ontario, Alberta vs British Columbia.

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