Work & Business

Buying Farmland in PEI: The Lands Protection Act and Non-Resident Limits

Non-residents are capped at 5 acres or 165 feet of shore frontage in PEI without approval. Here's how the Lands Protection Act works, what IRAC actually reviews, and what changed with 2026's Bill 20.

1. The Basic Caps Everyone Hits First

Under PEI's Lands Protection Act, a non-resident person or any corporation is capped at an aggregate land holding of 5 acres, or 165 feet of shore frontage, without government approval. This applies regardless of the value or formality of the purchase agreement, and since a 2022 amendment, it applies even when multiple non-residents are jointly acquiring a single parcel larger than 5 acres.

2. The Absolute Ceilings, Even With Approval

Holder	Maximum aggregate land holding
Individual person	1,000 acres (400 acres if excluding non-arable land)
Corporation	3,000 acres (1,200 acres if excluding non-arable land)

Non-arable land can be excluded from these calculations up to the limits above, but exclusion doesn't remove the requirement to apply for approval in the first place.

3. How the IRAC Approval Process Works

Submit an application to the Island Regulatory and Appeals Commission (IRAC) — Form 1 or Form 2 for a specific parcel, or Form 8A for a Global Lease Permit.
IRAC reviews the application considering intended use, your aggregate holdings, environmental impact, and broader public-interest factors.
IRAC makes a recommendation to Executive Council.
A final decision is issued through an Order in Council. Approval is not automatic or guaranteed.

Fee	Amount
Standard application	$550, or 1% of the purchase price, whichever is higher, for non-resident individuals, non-resident corporations, or corporations where a majority of voting shares are held by non-residents

4. What Changed in 2026: Bill 20

On May 29, 2026, the PEI Legislature passed Bill 20, amending the Lands Protection Act to add oversight of non-resident ownership of municipal residential property — a category of land that had previously fallen outside the Act entirely. The stated goal is to curb speculative purchases of vacant residential properties in areas facing housing shortages. As of early August 2026, the amendments had been granted Royal Assent but were not yet proclaimed (in force), with the province indicating a 60-to-90-day window following Royal Assent before implementation. Anyone planning a municipal property purchase as a non-resident should check IRAC's website for the current status before assuming the old exemption still applies.

5. Practical Notes

"Resident" status under the Act depends on time actually lived in PEI as a citizen or permanent resident, not simply owning property or holding a work permit — confirm your specific status before assuming which limit applies to you.
If you're a newcomer still working toward permanent residency, you're very likely classified as a non-resident under this Act regardless of your immigration status, so budget for the 5-acre limit unless you plan to apply for an exception.