Selling Property As A Non-Resident Of Canada

When it comes to selling property in Canada, there are several regulations in place to ensure you meet the requirements of the government, and the transfer of your title is valid. However, if you happen to be a non-resident of Canada, your obligations during the sale of the property will differ significantly, especially from the perspective of tax implications.

In most cases, when non-residents sell property in Canada, the income or gains from the sale are taxable. The Canada Revenue Agency (CRA) takes a withholding tax of 25% for Capital Gains directly from the buyer at the time of payment. Generally, this tax is a lot more than what the taxpayer should owe, but if they cooperate with the CRA and follow their taxation guidelines, they can recover the Capital Gains withholding tax taken at the time of sale.

To recover the Capital Gains withholding tax one needs to:

a. File a Certificate of Compliance related to the sale of the property, which must be approved by the CRA.

b. File a Canadian tax return following the year during which they sold their property, i.e., by April 30.

By doing this, a non-resident can also claim expenses such as commissions and legal fees against the income from the sold property. Unfortunately, as many people find the tax system complicated and stressful, they end up leaving a massive sum of money unclaimed after selling their property.

If you are a non-resident of Canada looking to sell your property, you must be aware of all the deductions and expenses related to your transaction. That way, you can appropriate the exact worth of your property and even claim costs incurred at the time of sale. To ensure you are aware of your financial obligations and the correct way to file your claims, it’s vital to enlist the services of an experienced tax professional.

At Can-Am CPA Professional Corporation, we provide various accounting and taxation services. If you approach us when selling your property, we will educate you about the taxation process and furnish you with the information applicable to your situation. After the sale is complete, we will accurately file and liaison with the CRA to recover the excess tax that has taken.

As experienced professionals, we have a 100% success rate in recovery and have dealt with many non-resident property sales. We accurately calculate the amount of taxes owed to the CRA and also help you apply for reimbursements based on the expenses you’ve incurred during the sale. To learn more about the financial aspect of selling a home as a non-resident, get in touch with our experts by giving us a call at 416-243-2912 or emailing us at info@canamtax.com. We are also available for in-person consultations at our office in 1275 Jane Street, Toronto, ON M8W 0B6.

Our full-service accounting and taxation firm in Toronto, ON, is designed to help small businesses and individuals navigate through the complex rules, law, and policies of the Canadian taxation system. Through an open and friendly environment, our accounting professionals offer superior quality services that can be appreciated for many years to come. At the same time, they handle all of your accounting and taxation needs systematically without interrupting your operation or personal activities.

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