Guide for Non-Residents Buying Property in Canada
Key Taxes, Financing Options, and the Buying Process Explained
Understanding the Underused Housing Tax
If you are a non-resident considering purchasing real estate in Canada, it's essential to be aware of the Underused Housing Tax. This federal tax imposes a 1% annual charge on the value of residential properties deemed "vacant or underused" and owned by non-residents. Before making a purchase, evaluate whether this tax will apply to your situation and factor it into your overall costs. Buying property in Canada as a non-resident in 2026 is significantly more restricted than in previous years. Currently, a federal ban—the Prohibition on the Purchase of Residential Property by Non-Canadians Act—is in effect and has been extended until January 1, 2027.
Financing and Mortgages for Non-Residents
Securing a mortgage in Canada as a non-resident can be challenging, but it’s not impossible. Most Canadian banks require a minimum down payment of 35% from non-resident buyers. You will also need to submit comprehensive documentation, such as international credit reports, proof of income from your country of residence, and a reference letter from your local bank. Additionally, opening a Canadian bank account is necessary to manage the closing process and make future mortgage payments.
The Buying Process Step-by-Step
1. Hire a Specialized Agent: Work with a REALTOR® who has experience with non-resident sales. They will help you find suitable properties and ensure the location isn’t in a restricted zone.
2. Legal Review: Engage a Canadian real estate lawyer or notary to oversee the title transfer and verify compliance with the Foreign Buyer Ban and other regulations.
3. CRA Compliance When Selling: When it’s time to sell, the Canada Revenue Agency (CRA) will withhold between 25% and 50% of the gross sale price. This withholding remains until you obtain a Certificate of Compliance, which is required to settle your capital gains tax obligations.
Purchasing property in Canada as a non-resident involves unique tax considerations, financing requirements, and legal steps. Planning ahead and seeking professional advice can help you navigate these complexities and make informed decisions.
SA Business Loan Security and Guarantees Required by Banks
It all begins with an idea.
South Africa Business Loan Security & Guarantees Required
How South African Financial Institutions Secure Business Funding
South African financial institutions, including major banks and alternative lenders, require various forms of security and guarantees to mitigate risk when providing business loans to small and medium-sized enterprises (SMEs).
Understanding these requirements is crucial for any business seeking financing. The type of collateral required often correlates directly with the loan amount, the business’s credit history, and its operational stability.
Key Collateral and Security Types for SA Business Loans
We break down the essential categories of security banks look for:
Hard Assets & Property (Business Collateral)
Pledging tangible assets is the most common method to secure a loan, often leading to better interest rates and terms.
* Commercial Property & Mortgage Bonds: Pledging business-owned immovable property (offices, factories, warehouses) or, frequently, a personal guarantee secured by the owners’ residential property.
* Notarial Bonds Over Movables: Legal charges over the business’s identifiable movable assets, including:
* Heavy Equipment & Machinery
* Commercial Vehicle Fleets
* Business Stock and Inventory
2. Financial Assets & Revenue Cession
Financial institutions require assurance over the business’s future revenue streams or liquid assets. This involves ceding the rights to these assets to the lender.
* Cession of Book Debts (Accounts Receivable): Assigning the bank the right to collect outstanding client invoices in the event of default. This is a powerful form of loan security.
* Cession of Insurance Policies: Transferring the rights to payouts from vital policies, such as Key Man Insurance or asset loss policies.
* Pledge of Liquid Investments: Using financial instruments like listed shares or certain funds as collateral for the business debt.
3. Personal & Corporate Guarantees
Guarantees are a fundamental requirement in South Africa, providing the bank with recourse against a third party if the business entity defaults.
* Personal Suretyship (Most Common): The director(s) or owner(s) personally guarantee the business loan repayment. This places the personal wealth and assets of the surety at risk.
* Corporate Guarantees: A guarantee provided by a larger parent company or related corporate entity to back the subsidiary’s borrowing.
Why Security Matters for South African Business Finance
Banks view security as a safety net. For businesses, offering strong collateral typically results in a lower interest rate on the business financing and a higher chance of approval. If your business has strong cash flow but limited physical assets, exploring unsecured business loans (often relying primarily on suretyship and cash flow health) may be an option, but these often carry higher costs.
International Institutions Financing Private Companies in Africa: What You Need to Know
It all begins with an idea.
The Shift in African Financing
For decades, international financing in Africa focused on governments and large public projects. Today, the landscape is changing rapidly. A growing number of international institutions now actively finance private companies—including start-ups, SMEs, and large corporates—across the continent. This shift is opening new opportunities in sectors such as energy, agriculture, health, infrastructure, fintech, and manufacturing, creating access to capital that didn’t exist a decade ago.
Why International Financing Matters
African businesses, especially SMEs, often face significant challenges:
Limited local lending options
High interest rates
Currency risks
Lack of collateral requirements
International financing helps address these issues by offering:
Long-term loans
Equity investments
Risk-sharing guarantees
Subsidized capital
Blended finance mechanisms
These institutions frequently provide better terms and more flexible funding structures than local banks.
Key International Institutions Supporting Africa’s Private Sector
1. International Finance Corporation (IFC)
Part of the World Bank Group, the IFC is the most active global financier of the private sector in developing markets. It offers equity investment, direct loans, trade financing, guarantees, and risk-sharing facilities. Focus sectors include renewable energy, banking and finance, digital infrastructure, agriculture, and manufacturing. The IFC also partners with local banks to expand SME lending.
2. Proparco (France)
Proparco specializes in financing private businesses in emerging markets, with a strong presence in Africa. It supports mid-sized enterprises, SMEs, financial institutions, and infrastructure developers. Proparco is part of the “Choose Africa” initiative, channeling billions of euros into African privately-owned companies.
3. African Development Bank (AfDB)
While traditionally focused on public projects, AfDB increasingly finances private companies, especially in energy, infrastructure, agriculture, and digital sectors. Support includes project financing, blended finance, investment through private funds, and co-financing with other development finance institutions. AfDB also backs innovative financing platforms and green energy funds.
4. Blended Finance and Guarantee Platforms
Many global development organizations now use blended financing models, combining public development funds, concessional loans, and private investment. This approach reduces risk and improves access to capital for private companies in higher-risk African markets.
Who Can Qualify?
International financing is available to:
SMEs
Start-ups
Agribusiness enterprises
Energy companies
Infrastructure firms
Technology service providers
Manufacturing and industrial companies
Projects with job creation, sustainability, and local development impact often receive priority.
What Do These Institutions Look For?
Most institutions seek:
Strong business plans
Financial viability
Developmental impact (jobs, sustainability)
Governance and reporting standards
ESG compliance (in some cases)
Companies with social impact, innovation, or sustainability goals have an advantage.
Sectors Funding Fastest
Current priority sectors include:
Renewable and clean energy
Agriculture and agro-processing
Digital and fintech
Healthcare
Trade and logistics
Infrastructure
Transportation
Several institutions also target women-owned and youth-led businesses.
Why Is This Trend Growing?
Africa is the world’s fastest-growing region in population, urbanization, fintech adoption, and green energy potential. Global institutions increasingly view African private-sector growth as both strategic and profitable.
African private companies today have more financing options than ever before. International institutions are actively investing, partnering with local banks, and supporting entrepreneurs across multiple sectors. With the right project, African businesses can now access long-term capital, expertise, and global partnerships that fuel sustainable growth.
How Foreigners Can Invest in Real Estate in Kenya — A Complete Guide (2025)
It all begins with an idea.
Thinking of buying property in Kenya as a foreigner? Learn the latest 2025 rules: leasehold limits, allowed property types, legal steps, taxes and best practices to invest safely.
Why this guide matters
Kenya remains an attractive real-estate destination for international investors seeking residential, commercial, or industrial property. However, the legal framework places specific restrictions on foreign buyers — it’s essential to understand them to avoid costly mistakes or legal issues. This guide breaks down what foreigners can (and cannot) buy, how to proceed legally, and what costs and risks to anticipate.
Legal framework: What Kenyan Law Says
Under Constitution of Kenya (2010), non-citizens and foreign-controlled entities cannot own freehold land in Kenya.
Instead, foreigners may hold land or property only on a leasehold basis, for a maximum of 99 years.
Any freehold land held by foreigners prior to the Constitution has been converted into a 99-year leasehold.
These rules apply broadly — to residential, commercial, and industrial properties.
What Can Foreigners Buy (or Lease) — Allowed Property Types
As a foreign investor or non-citizen, you may legally acquire (via leasehold) the following property types in Kenya:
Residential apartments, flats, houses (in urban or approved areas)
Commercial premises — offices, retail shops, retail/industrial spaces, warehouses, industrial zones on leasehold terms
Industrial/ business-use land (under leasehold) for factories, warehouses, or manufacturing, if allowed under zoning and local regulations
Important restrictions / caveats:
Direct purchase of agricultural land by foreigners is generally prohibited under the Land Control Act — unless special approval from the Land Control Board (LCB) is obtained or a presidential exemption granted.
Freehold titles are not valid for foreigners; any purported freehold sale must be treated as leasehold.
How to Acquire Property Legally — Step by Step
If you decide to invest, follow these key steps to ensure compliance:
Engage a licensed local lawyer (advocate) or legal firm experienced in foreign acquisitions — they will handle due diligence, contracts, and registration. Many firms specialize in helping foreign clients.
Carry out a title search at the Lands Registry (or equivalent) to verify that the title is valid, the property is not encumbered, and the tenure is leasehold (not freehold).
Prepare and sign a sale or lease agreement — with terms clearly defining lease duration, rights, obligations and payment schedule. Use legal representation to avoid pitfalls.
Pay required duties and charges, including stamp duty and registration fees.
Register the transaction at the relevant government land registry / Ministry of Lands — to formalise your leasehold interest.
For commercial or business properties — especially if you intend to operate or generate income — register with the Kenya Revenue Authority (KRA) and obtain a KRA PIN.
Costs & Taxes — What to Budget For
When purchasing property in Kenya as a foreigner or foreign-controlled company, expect the following:
Stamp duty / transfer tax — often charged at ~4% in urban areas, ~2% in rural/less urban areas, depending on property type and location.
Legal and conveyancing fees — for lawyers, document preparation, due diligence, registration assistance.
For commercial/industrial properties: VAT obligation (for companies), or other tax/permit compliance depending on usage.
Ongoing leasehold obligations — if the property is leasehold land, there may be periodic lease rent, maintenance charges or compliance with local regulations depending on local county laws.
Alternative Structures & Strategies for Foreign Investors
Because freehold ownership is generally off-limits, many foreign investors use these legal-compliant options:
Long-term leasehold (up to 99 years) — the most common and straightforward route.
Registering a Kenyan company (local entity) — if the company is wholly Kenyan-owned (or meets local-ownership thresholds), it may hold freehold or otherwise restricted land. Foreign-owned companies remain subject to foreign-ownership restrictions.
Joint ventures with Kenyan citizens or entities — partnering with local persons or firms can provide access to property otherwise restricted, especially for agricultural or large-scale land.
Risks & Common Pitfalls — What to Watch Out For
Fake or invalid title deeds: some “freehold” properties offered to foreigners may in fact be illegal under Kenyan law. Always verify properly.
Restricted land types or zones: agricultural land, border zones, protected or conservation areas may have additional restrictions or require special permissions.
Unlicensed brokers or agents — engaging unregistered property agents can lead to fraud, double sales, or invalid transactions. Legal representation is strongly recommended.
Unclear leasehold terms or expired leases — always check the duration, renewal possibility, and obligations tied to leaseholds.
Leasehold residential or commercial properties in urban areas, industrial or business-use land under long-term lease, or structures via local companies/joint ventures can offer both security and growth potential.
The key is transparency, compliance, and professional legal support.