A foreign buyers tax (or non-resident speculation tax) is an additional tax charged when non-Canadian residents purchase residential property, designed to discourage speculative foreign investment that may contribute to housing unaffordability. British Columbia and Ontario introduced these taxes, typically adding 15-25% to purchase prices for properties bought by non-residents or foreign corporations. The policy aims to reduce competition from foreign buyers driving up prices, encourage productive use of housing rather than investment speculation, and address public concern about foreign influence on housing markets. Effectiveness is debated—taxes may reduce some foreign buying but haven't solved affordability crises with multiple causes. Exemptions typically exist for immigrants, work permit holders, and certain other categories. The tax differs from regular property taxes but reflects similar concerns about housing as both shelter and investment asset.