Buying on PEI from outside the Island, or outside Canada

Outside Canada: the federal ban

The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops most people who are not Canadian citizens or permanent residents from buying residential property. The federal government extended it to January 1, 2027.

It applies inside census metropolitan areas and census agglomerations. It does not apply to vacant land, and it has exceptions, including some work-permit holders and students. CMHC publishes a lookup for whether a location is covered. Speak with a lawyer before you make an offer.

Outside PEI: the Lands Protection Act

Canadians who live elsewhere can buy on PEI, with limits. Under the Lands Protection Act, a non-resident cannot hold more than five acres in total, or more than 165 feet of shore frontage, without permission from the Lieutenant Governor in Council (provincial cabinet). The Island Regulatory and Appeals Commission (IRAC) handles the application. The total counts what you already own, not only the property in front of you.

An amendment passed in May 2026 adds a rule for “municipal property”, meaning a lot of one acre or less in a municipality with an official plan. Once the amendments come into force, a non-resident can hold one such property without an application, and a second needs approval. Approval is not automatic. Applications can be refused.

• Put any required approval in the conditions
• Budget time for the application

Property tax

PEI levies a provincial property tax of $1.70 per $100 of assessment on non-commercial property. Residents can get a provincial tax credit of $0.70 per $100. Residency for the credit means living in PEI for 183 consecutive days or more in the tax year. Municipal tax is separate.

Separately, the owner-occupied credit that limits some long-time owners’ assessments only applies in narrow cases. A seller’s tax bill is not a forecast of yours. Ask for the assessment and work out your own bill as the owner you will be.

Before you offer

Confirm your status under both rules. Then talk with Jodi about which properties fit inside them.

Sources

Checked October 2026. Rules change; confirm the current position before you rely on it.

• Prince Edward Island Lands Protection Act s.4 (princeedwardisland.ca)
• IRAC FAQ: Recent amendments to the LPA (irac.pe.ca)
• SPEI 2026 c.17 (CanLII) (canlii.org)
• Gov. of PEI news, May 29, 2026 (princeedwardisland.ca)
• Table of Public Acts (to Oct 1, 2026) (princeedwardisland.ca)
• Finance Canada: ban extension to Jan 1, 2027 (canada.ca)
• CMHC: Prohibition Act overview and exceptions (cmhc-schl.gc.ca)
• SOR/2022-250 s.5 (laws-lois.justice.gc.ca)
• Canada Gazette II, SOR/2023-66 (vacant land) (gazette.gc.ca)
• Provincial Tax Credit Program (princeedwardisland.ca)
• Real Property Tax Act ss.4–5.1 (princeedwardisland.ca)
• Real Property Tax Act Regulations s.24 (princeedwardisland.ca)
• SPEI 2026 c.21 (tax rate/credit change) (canlii.org)