If you are a US citizen dreaming of a home on Vancouver Island, you have probably heard about Canada's foreign buyer ban and British Columbia's 20% foreign buyer tax. The good news: you can still buy near Victoria — you just need to know exactly where the rules apply and where they do not.
At The Webbers, we help buyers from across the United States and beyond navigate the market in Greater Victoria and the Cowichan Valley. Below is a clear, plain-English breakdown of the two rules that matter most for American buyers, and the specific communities where you can purchase freely today.
The short answer: The federal foreign buyer ban and BC's 20% foreign buyer tax both apply inside Greater Victoria (the Capital Regional District). Neither applies in the Cowichan Valley just to the north — so US citizens can buy there freely, with no ban and no 20% surcharge.
Two rules every US citizen needs to understand
As a US citizen without Canadian permanent residency, you are considered a "non-Canadian" under both federal and provincial law. That means your purchase is tested against two completely separate rules. Passing one does not exempt you from the other.
1. The federal foreign buyer ban (in effect until January 1, 2027)
The Prohibition on the Purchase of Residential Property by Non-Canadians Act — commonly called the foreign buyer ban — prohibits non-Canadians from buying residential property inside a Census Metropolitan Area (CMA). Victoria is a CMA, and it covers the entire Capital Regional District. The ban has been extended through January 1, 2027, and penalties can include fines and a court-ordered sale of the property.
2. BC's 20% foreign buyer tax (no expiry date)
Separately, British Columbia charges an Additional Property Transfer Tax of 20% on the foreign buyer's share of a property's value. This provincial tax applies in five regional districts only: Metro Vancouver, the Capital Regional District, the Fraser Valley, Central Okanagan, and the Regional District of Nanaimo. Unlike the federal ban, it has no expiry date — and it is a tax, not a prohibition, so it makes a purchase more expensive rather than blocking it.
Where the foreign buyer rules apply near Victoria
Notice the trap in the third row: the Nanaimo Regional District sits outside the Victoria CMA, so the federal ban does not apply — but it is on the provincial tax list, so a US buyer there would still owe the 20% tax. This is exactly why location matters so much on Vancouver Island.
Where US citizens can buy freely: the Cowichan Valley and Malahat
The Cowichan Valley, immediately north of the Malahat, is the natural place for American buyers to look. The Cowichan Valley Regional District is outside the Victoria CMA and is not on the provincial 20% tax list — so you are clear on both counts. Known for its wineries, farmland, lakes, and waterfront, it is roughly 45 to 75 minutes from downtown Victoria.
Communities in the Cowichan Valley and Malahat area where US citizens can currently buy with no foreign buyer ban and no 20% tax include:
Malahat
Mill Bay
Cobble Hill
Shawnigan Lake
Cowichan Bay
Cowichan Station
Duncan
North Cowichan — including Maple Bay, Crofton, Chemainus and Genoa Bay
Lake Cowichan and Youbou
One boundary note: Malahat sits right on the edge of the Capital Regional District. The community itself is in the Cowichan Valley, but a specific property should always be confirmed on the correct side of the line before making an offer. We check this for every client.
A note on the Speculation and Vacancy Tax
There is one more BC tax to be aware of — the annual Speculation and Vacancy Tax (SVT). It is often misunderstood, because it does not cover the whole Cowichan Valley. The SVT applies only in these incorporated municipalities in the region:
City of Duncan
District of North Cowichan (which includes Maple Bay, Crofton, Chemainus and Genoa Bay)
Town of Lake Cowichan
Town of Ladysmith
The surrounding communities — Mill Bay, Cobble Hill, Shawnigan Lake, Cowichan Bay, Malahat and Youbou — sit outside the SVT entirely. And even where the SVT does apply, it is only charged if a home is left empty most of the year. If the property is your residence or is rented to a long-term tenant, it is exempt. You simply file a short declaration each year.
Exemptions if you want to buy in Greater Victoria
If your heart is set on Victoria, Oak Bay, or another CRD community, there are a few exemptions from the federal ban worth exploring with a lawyer:
Canadian spouse: Buying jointly with a Canadian citizen or permanent resident waives the federal ban (the 20% tax still applies to your share).
Work permit: A valid Canadian work permit with at least 183 days remaining allows the purchase of one home (the 20% tax is not waived).
Development: Buying land or property to build new housing is exempt from both — but this cannot be used to rent out an existing home.
Multi-unit buildings: A building with four or more dwelling units falls outside the federal ban.
Other costs American buyers should budget for
Regardless of where you buy in BC, plan for these:
Property Transfer Tax: a tiered 1–5% tax paid at closing, the same as for any BC buyer.
Financing: non-residents typically need a down payment of 35% or more. Cross-border lenders such as RBC and TD can often use your US income history.
Withholding on sale: when you eventually sell, 25% of the gross proceeds is withheld and credited against the tax owed.
US tax reporting: US citizens must report foreign property and accounts through FBAR and FATCA filings, even though the Canada–US tax treaty prevents double taxation.
Frequently asked questions
Can a US citizen buy a house in the Cowichan Valley?
Yes. The Cowichan Valley is outside the federal foreign buyer ban and is not subject to BC's 20% foreign buyer tax, so US citizens can buy there freely.
Does the foreign buyer ban apply to Victoria, BC?
Yes. Victoria is a Census Metropolitan Area covering the entire Capital Regional District, so the federal ban applies there until at least January 1, 2027, unless an exemption applies.
Do Americans pay the 20% foreign buyer tax in the Cowichan Valley?
No. The 20% Additional Property Transfer Tax applies only in five specified regional districts, and the Cowichan Valley is not one of them.
Is there a speculation tax in Mill Bay, Shawnigan Lake, or Youbou?
No. The Speculation and Vacancy Tax applies only in the municipalities of Duncan, North Cowichan, Lake Cowichan, and Ladysmith. Mill Bay, Cobble Hill, Shawnigan Lake, Cowichan Bay, Malahat, and Youbou are outside it.
Can Americans buy property in Malahat, BC?
Generally yes — Malahat is in the Cowichan Valley and outside both the ban and the 20% tax. Because it sits right on the CRD boundary, the specific property should be confirmed before making an offer.
Does buying property in Canada give a US citizen residency?
No. Owning property does not grant residency, a visa, or citizenship. US citizens can typically visit Canada for up to six months at a time as visitors.
When does Canada's foreign buyer ban end?
The ban is currently scheduled to expire on January 1, 2027, though it has been extended before. BC's 20% foreign buyer tax has no expiry date and would continue afterward.
Thinking about buying near Victoria? Let's talk.
The Webbers are a third-generation family of REALTORS® specializing in Greater Victoria and the Cowichan Valley, and we work with international buyers regularly. We can help you identify eligible properties, confirm exactly which rules apply to a specific address, and connect you with a trusted BC real estate lawyer and cross-border accountant.
Ready to explore your options? Contact The Webbers at webbers.ca or call 250-715-5414, and tell us your budget and must-haves — we will send you current listings in the areas that fit.