Property transactions guidelines

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Diplomatic missions and consular posts must seek written permission from Global Affairs Canada well in advance of any planned acquisition, use, sale, or other disposition of real property located in Canada, in accordance with these guidelines. This includes purchasing, leasing, building, renovating, redeveloping, retrofitting, selling, leasing out, or leaving vacant a property. The Office of Protocol is responsible for processing requests for these property transactions on behalf of Global Affairs Canada.

As for international organizations established in Canada pursuant to an order made under the Foreign Missions and International Organizations Act and military international organizations established pursuant to an order made under the Privileges and Immunities (North Atlantic Treaty Organisation) Act, they should address their property-related questions/needs directly to the Office of Protocol’s Privileges and Immunities Unit.

For the purposes of these guidelines, the following apply:

  • VCDRmeans the Vienna Convention on Diplomatic Relations
  • VCCR means the Vienna Convention on Consular Relations

Purchasing or leasing a property

Diplomatic missions and consular posts can select properties for their chanceries, official residences, staff housing, and other offices, subject to certain federal government requirements, and in accordance with provincial and municipal government planning, development, and construction regulations. To conduct searches of suitable locations or to carry out property-related transactions effectively, missions and posts are advised to engage reputable real estate services. Neither Global Affairs Canada nor any other federal government department sell/rent properties such as vacant lands to foreign states. In Ottawa, missions seeking to lease or purchase real property owned by the National Capital Commission (NCC) can contact the Commission directly.

For all real estate purchases, as well as commercial and residential leases, the Office of Protocol advises countries to retain legal services to ensure the transactions are executed in accordance with Canadian law. It also strongly recommends that they obtain appropriate property insurance coverage for all their purchased or leased premises, as this is the first means of recourse in the event of loss or damage.

Countries wishing to buy or lease a property for a chancery in a residential area need to ensure that the zoning regulations are favourable, by obtaining a confirmation from the City zoning authority. They are also encouraged to consult with local police services before purchasing or leasing premises to obtain security-related advice regarding the neighbourhood and learn about any negative attributes of the property.

Making a request to acquire property

Countries seeking to purchase or lease a premise for use as a diplomatic mission, consular post, or an official residence for a head of mission or head of post (career) are encouraged to contact the Office of Protocol’s Privileges and Immunities Unit to discuss the anticipated acquisition. This also applies to countries seeking to purchase staff quarters and multi-residential properties. This first step should be done as early in the process as possible.

Diplomatic missions (in other words, chanceries) must be located in Canada’s capital, Ottawa. To note, however, that Global Affairs Canada does not approve requests to acquire property on Sussex Drive, in Ottawa. This policy, in effect since 2016, is applied strictly and on a uniform basis. Heads of missions and other accredited members of the embassy or high commission may, with the Office of Protocol’s approval, establish their official and personal residences in the broader National Capital Region, which straddles the provinces of Ontario and Quebec.

Countries must email a request to the Privileges and Immunities Unit at least 30 working days (6 weeks) prior to the proposed transaction date. The request must include the following:

  • Proposed use of the premise: chancery, consulate, residence, or annexe.
  • Civic address of the property, including apartment, floor, and suite number.
  • Proposed acquisition method: purchase or lease (if the latter, specify the lease’s term/duration) and the planned timing of the transaction).
  • Whether any portions of the property (specify the square footage) are being used as, or planned for other uses, such as:
    1. staff accommodation,
    2. rental to another foreign mission/post,
    3. for a commercial purpose, or
    4. for another tenant.
  • Confirmation that the foreign state does not have any outstanding debts in Canada, including for unpaid property taxes (the Office of Protocol may ask municipal authorities to validate information provided in this regard).
  • Confirmation from the municipal authorities that the intended use of the property does not contravene any local regulations, including such things as provincial or municipal by-laws regarding zoning, safety, and heritage conservation (a copy of an email from the City authorities is sufficient).
  • Planned timeline for the move and estimated date the mission or post would begin operating from the new location.
  • Mission point(s) of contact with their email(s).

The Office of Protocol cannot provide any information regarding the processing time for any application as this depends on the circumstances of each application. Prior to having a response to their request, a country should not enter into a contractual or leasing agreement, unless it stipulates that its execution is subject to Global Affairs Canada’s approval. Significant financial and legal complications could result if this requirement is overlooked or disregarded.

Once the Office of Protocol approves the acquisition request, the purchase or lease of the property may proceed. In its Note of approval, the Office of Protocol will clarify the scope of applicable tax exemptions such as property tax exemptions, including whether/when the property is covered by the Diplomatic, Consular and International Organizations’ Property Grants Order. The Government of Canada retains the authority to determine the date upon which a foreign state’s property acquires (whether partially or wholly) the status of diplomatic or consular premises in Canada under the Vienna Conventions.

Once a property is approved for acquisition for a specific purpose, it is to be used only for the stated purpose. It may not serve, even in part, for any other usage, without the express consent of the Office of Protocol.

Foreign states are not liable for payment of municipal property taxes on leased property, since property taxes are always payable by the owner. However, taxes that are passed on as part of the rent payable are in fact rent and not taxes. This means that there is no scope for the Lessee foreign state to submit a claim to the Government of Canada for the reimbursement of the property taxes on commercial and residential tenancy agreements.

About departing heads of mission/post whose official residence is leased

With respect to ambassadors and high commissioners, missions are reminded to notify the Office of Protocol ahead of their end of functions and final departure as to whether the residential lease for their official residence will also end; or whether the tenancy agreement will be maintained for their successor. The same applies to career heads of consular posts, example, consuls general.

Staff accommodation leases

Countries do not need Global Affairs Canada’s approval for leasing real estate to be used as staff housing, although they are expected to comply with all Canadian tax and other applicable laws and regulations. Diplomatic staff quarters do not enjoy any exemption from property or other consumer taxes pursuant to article 23 of the VCDR; and consular staff quarters similarly do not enjoy an exemption from such taxes pursuant to article 32 of the VCCR.

In Canada, landlords/lessors are not obliged to include a diplomatic clause in a lease contracted with a foreign representative tenant/lessee. However, such a clause may be included in the lease, if both parties agree to it when the lease is signed. In the absence of a diplomatic clause, the tenant/lessee will have to reach an agreement with the landlord/lessor about the requirements if the lease is to be terminated earlier than planned. To reach an agreement that respects Canadian law, both parties may wish to seek the advice of legal professionals.

Accredited foreign representatives who enter into residential lease agreements are also expected to resolve any dispute with private individual owners or private entities constructively, keeping in mind Canadian laws and regulations.

Relocation or temporary move

Once a diplomatic mission, consular post, official residence of a head of mission or post (career) is established, any subsequent location change is subject to the Office of Protocol’s prior written consent. This also applies to any temporary move of any such property. For a permanent relocation or temporary move, a property acquisition request must be made by the diplomatic mission, via email addressed to the Privileges and Immunities Unit at least 30 working days (6 weeks) prior to the proposed move date, and convey the following:

  • Use of the new premise: chancery, consulate, residence, or annexe.
  • If the location change is a permanent relocation or temporary move.
  • Civic address of the new proposed property, including apartment, floor, and suite number.
  • Proposed acquisition method: purchase or lease (if the latter, specify the lease’s term/duration).
  • Whether any portions of the property (specify the square footage) are being used as, or planned for other uses, such as:
    1. staff accommodation,
    2. rental to another foreign mission/post,
    3. for a commercial purpose, or
    4. for another tenant.
  • Confirmation from the municipal authorities that the intended use of the property does not contravene any local regulations, including such things as provincial or municipal by-laws regarding zoning, safety, and heritage conservation (a copy of an email from the City authorities is sufficient).
  • Planned timeline for the move and estimated date the mission or post would begin operating from the new permanent or temporary location.
  • Estimated date that the mission or post would return to the previous location (in the case of temporary moves only).
  • Mission point of contact(s) with their email(s).

The Office of Protocol cannot provide any information regarding the processing time for any application as this depends on the circumstances of each application. Once the Office of Protocol has authorized the request, the acquisition (relocation or temporary move) may proceed.

Notifying relevant authorities about the physical possession of premises

Once a country occupies and begins operating from the premise as a diplomatic mission, consular post, or an official residence a head of mission or head of post (career) and the mission has provided notification of this, Global Affairs Canada will communicate the relevant details to a number of entities, including the Royal Canadian Mounted Police (RCMP), the Canada Revenue Agency (CRA), and the appropriate provincial office(s) of protocol.

Property maintenance

The Office of Protocol expects foreign states owning real estate in Canada to comply with all applicable laws and requirements, such as building codes and land use regulations, including appropriate property maintenance, whether the property enjoys diplomatic (or consular) privileges and immunities or not. In all Canadian cities this means maintaining the property in accordance with local maintenance standards and taking prompt action to make any necessary repairs and eliminate any unsafe conditions.

The Office of Protocol further expects diplomatic missions and consular posts to grant access to their premises to their commercial landlords to undertake any necessary property inspections, maintenance and/or repairs, in accordance with the terms of the commercial lease and applicable laws.

The failure of a country to duly maintain its official premises or residences can have considerable adverse impacts on the diplomatic community, as well as on the city and neighbourhood in which such a property is located. Buildings that fall into disrepair can become a visual blight and, if structurally compromised, can pose a danger to persons working in or occupying the building. Blighted buildings and/or property (including such things as a porch, yard or garden) may also cause a decline in the real estate value of nearby homes or buildings and impact people in the surrounding community.

Countries wishing to pursue upkeep repairs and maintenance work in relation to existing diplomatic/consular chanceries and official residences do not require permission from the Office of Protocol. Examples of upkeep repairs and maintenance work include painting, tiling, roofing, brick work, plumbing, heating, ventilation and air conditioning services, electrical servicing, window replacement, landscaping, asbestos removal, property inspections and site surveys, and snow removal.

Building, redeveloping and altering premises

Foreign states may pursue new construction or the redevelopment of existing premises, if they adhere to local planning, land use, building, safety, and other regulations. In this regard, they are advised to engage reputable architects, general contractors, and construction companies when undertaking such projects. Countries must make their own direct arrangements with – or have their architects, builders, or general contractors deal with – the relevant provincial and municipal authorities. It is important to note that municipal planning and development procedures and regulations vary from city to city.

New construction and alterations or expansions to existing chanceries, official residences, or other owned properties must comply with numerous provincial and municipal laws and requirements, including relevant local building codes. Land surveys, building design and site plans, demolition and building permits, and work inspections and approvals are all required at various stages of the planning and construction process.

Countries wishing to construct new, or substantially structurally renovate existing, premises – to be used as a diplomatic mission, a consular post, or an official residence for a head of mission or head of post (career) – must email a request to the Privileges and Immunities Unit seeking the Office of Protocol’s authorization for the project only when such project is estimated to exceed $100,000 Canadian Dollars, before taxes. Permission must also be sought for all demolitions of existing buildings, as well as for all renovations or alterations aimed at using a portion of the property for staff accommodations or commercial purposes.

The mission’s request must include:

  • Address of the property, including apartment, floor, and suite number.
  • Description of the proposed undertaking: new construction, expansion (addition), redevelopment, demolition and rebuild, or demolition and removal.
  • Copy of the cost estimate from the building contractor.
  • Whether any renovations or alterations will result in portions of the property (specify the square footage) to be used as:
    1. staff accommodation,
    2. rental to another foreign mission/post,
    3. for a commercial purpose, or
    4. for another tenant.
  • Confirmation from the municipal authorities that the intended use of the property does not contravene any local regulations, including such things as provincial or municipal by-laws regarding zoning, safety, and heritage conservation (a copy of an email from the City authorities is sufficient).
  • Mission point of contact(s) with their email(s).

Accredited representatives are encouraged to contact the Office of Protocol as early as possible when considering a proposed construction or redevelopment project, so they can benefit from qualified advice, which may help them to avoid hurdles or complications. While the Office of Protocol does not guarantee processing in any given timeframe, it does its best to examine all service requests as quickly as possible.

With respect to purchasing construction materials for a building or redevelopment project, eligible foreign states, that are deemed as “end users”, can recover a rebate of the goods and services/harmonized sales tax invoiced by the contractor. Rebate claims for the goods and services tax/harmonized sales tax (GST/HST) paid will be delayed or may be refused for any construction or redevelopment work over $100,000 Canadian Dollars undertaken without prior permission.

Finally, missions are reminded:

  • To acquaint themselves with the Canada Border Services Agency’s document entitled Memorandum D21-1-1: Customs Privileges for Diplomatic Missions, Consular Posts and Accredited International Organizations - Tariff Item No. 9808.00.00 before seeking to import building materials from abroad, and
  • That all construction workers assigned to property redevelopment projects undertaken by foreign states in Canada and contractors on their behalf, must not only be legally authorized to work in Canada (example, foreign nationals must have a valid work permit), but need to satisfy any provincial conditions on the exercise of occupations requiring professional credentials or trade certifications. The Office of Protocol does not assist on related applications.

Selling a property

Countries with a property to sell are advised to engage reputable local real estate and legal services.

When selling real property used as a diplomatic mission, consular post, or an official residence for a head of mission or head of post (career), they must notify the Privileges and Immunities Unit by email and include the following information:

A diplomatic mission or consular post that no longer occupies or is in possession of a premise must notify the Office of Protocol promptly.

If a country wishes to keep vacant its owned real estate or plans to lease it to another occupant, it will no longer be exempt from municipal taxes.

Vacant properties and end of inviolability

Missions are asked to notify the Office of Protocol of its vacant chancery and official residence properties, including vacant lands (example, following a property demolition), as expeditiously as possible and within no more than 10 days of vacancy. The inviolability of those properties ends from the moment the premises are no longer used for diplomatic or consular purposes/operations. Inviolability of a property also ends if the Office of Protocol notifies in writing that a property is no longer recognized as “premises of the mission” or “consular premises”.

In the absence of a notification and in respect of existing vacant premises/lands which the mission might wish to reuse in the future for diplomatic/consular purposes, inviolability and tax relief could be automatically withdrawn after a period of three months of vacancy.

On a general note, vacant land (in other words, on which there is no building) cannot be assimilated to “premises of the mission” or “consular premises”.

To note that once a property is vacant and is no longer recognized as “premises of the mission” or “consular premises”, there are legal, tax-related and other practical consequences. In this regard, missions/posts in Ontario are urged to familiarize themselves with the Vacant Unit (or Home) Tax and related declaration obligations in effect in their city. The same applies in respect of vacant properties in any other province.

Accredited foreign representatives purchasing real estate in a private capacity

Accredited foreign representatives are no longer required to seek Global Affairs Canada’s permission prior to purchasing property in a private capacity (example, for their staff quarters). They are however, asked to refrain from purchasing property which they plan to rent out for income (as an income property) during their posting in Canada, as this would not be consistent with obligations on accredited foreign representatives outlined in the VCDR/VCCR not to carry on any commercial activity in the receiving State.

The Government of Canada passed a new law in 2022 entitled the Prohibition on the Purchase of Residential Property by Non-Canadians Act. This Act prohibits people who are neither Canadian citizens nor permanent residents from purchasing residential property in Canada and further prevents non-Canadians from using corporate structures to avoid the prohibition. Certain exceptions apply allowing non-Canadians to purchase a residential property in defined circumstances, per the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations. These include exceptions for persons accredited to Canada. In keeping with paragraph 6(a) of the Regulations, the prohibition in the Act itself does not apply to “foreign nationals who hold a passport that contains a valid diplomatic, consular, official or special representative acceptance issued by the Chief of Protocol for the Department of Foreign Affairs, Trade and Development”.

Accredited foreign representatives who purchase property in a private capacity do not enjoy an exemption from property taxes or land transfer taxes. Nor can they claim a GST/HST rebate on the transaction. However, a GST/HST new housing rebate may be available, subject to the Canada Revenue Agency’s normal regulations. The sale of privately purchased property by accredited foreign representatives or formerly accredited foreign representatives is similarly subject to all Canadian tax regulations, including on any capital gain accrued since it was purchased.

Before making any decision or taking any action with respect to a personal property transaction in Canada, accredited foreign representatives should consult a professional. This webpage is a resource only and should not be used as a substitute for consultation with legal or other competent advisers.

Information on the Office of Protocol website

With the view of ensuring that the Office of Protocol’s official records are the most up to date, missions are invited to regularly review the information currently available on the Foreign Representatives in Canada webpage. This webpage contains several links, including search engines that allow users to find the coordinates of diplomatic missions and consular posts. Should there be any discrepancy with a mission’s own records, the Office of Protocol asks that changes be emailed to the Privileges and Immunities Unit.

The Office of Protocol does not publish the locations of official residences on its website.