Foreign Buyers Guide to Alberta Commercial Real Estate

I’m Mohit Dhillon, a licensed Calgary REALTOR® with Century 21 Bravo Realty. I help foreign buyers and international investors purchase commercial real estate in Alberta by keeping the process simple and deal-focused. We start by clarifying your target (cash flow, appreciation, value-add, or owner-user), then narrow inventory to properties that fit your risk tolerance and operating plan. From there, I guide you through the parts that matter most for foreign buyers: purchase structure, lender-readiness, offer terms and timelines, lease and expense verification, and the due diligence you need to avoid hidden liabilities. If you’re buying remotely, I keep execution tight—coordinating the right professionals and making sure every step is organized from offer to possession, including property management planning if you won’t be local.

FAQ’s

Does Canada’s foreign buyer ban apply to commercial real estate in Alberta?
The federal ban is written around “residential property” (as defined in the legislation and regulations). Many commercial assets are outside that definition, but you still need to confirm the property classification and your purchase structure.

What counts as “residential property” under the federal rules?
The definition generally focuses on properties with up to three dwelling units (and parts of buildings such as condo units). The regulations also tie application to properties located in certain census metropolitan areas / agglomerations.

Can a foreign buyer purchase multi-family in Alberta?
It depends on how the asset is classified and structured. Buildings with more units may fall outside the “up to three dwelling units” definition, but you should confirm deal specifics with legal advice before committing.

What down payment should foreign buyers expect for commercial property?
It varies by asset type, tenant strength, lease term, and your documentation. In many cases, foreign buyers should plan for higher equity and stronger proof of funds/income than local buyers.

What are the biggest due diligence items in Alberta commercial deals?
Lease verification (rent roll, renewals, escalations), expense validation (CAM, taxes, insurance, repairs), building systems (roof/HVAC), zoning compliance, and environmental risk (especially industrial and older sites).

Do I need to be in Alberta to buy commercial property?
Not always. Many steps can be done remotely, but you need an organized process for tours, inspections, document review, and legal signing—planned early so you don’t get squeezed on timelines.

How is rental income taxed for non-resident owners?
Non-resident rental income typically involves withholding and reporting rules. Many owners use an agent/property manager, and there are CRA processes (including elections/forms) that may change how withholding is calculated depending on your situation.

If I sell later as a non-resident, are there special tax steps?
Non-residents disposing of “taxable Canadian property” can trigger CRA compliance steps (commonly handled through Section 116 processes). Plan this early before a sale so closing isn’t delayed.

Are there Alberta land transfer taxes?
Alberta doesn’t have a traditional land transfer tax like some provinces, but there are Land Titles registration fees and mortgage registration fees that scale with value/principal.

Do foreign buyers face extra compliance checks?
Foreign buyers should expect stronger verification around identity, source of funds, and transaction reasonableness. Canada’s AML expectations and sanctions compliance can become relevant depending on the parties and transaction.