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Introduction When a non-resident disposes of real estate located in Canada, the role of the notary or real estate lawyer becomes crucial. The tax implications, compliance obligations, and resulting legal responsibilities are complex and can expose the practitioner to professional liability if mismanaged. These situations are, however, common, especially in a context where foreign investors have acquired significant amounts of Canadian real estate over the past decades. Unders

Selling real estate in Canada as a non-resident involves specific tax obligations. This guide outlines the essential rules: required forms, deadlines, federal and provincial obligations, as well as best practices to avoid excessive withholding and delayed funds. 1. Why is a certificate of compliance required? When a non-resident sells real estate located in Canada, the tax authorities require that amounts be withheld before the proceeds of sale leave the country in the absenc

When a non-resident client disposes of real estate located in Canada, the analysis does not stop at the domestic rules set out in the Income Tax Act. It must also take into account, in many cases, the existence of a tax treaty between Canada and the seller’s country of residence. This international dimension can influence planning, the client’s perception of withholding, and the final reporting of gains in their home country, although it generally does not eliminate Canada’s

When a non-resident sells real estate in Canada, most professionals immediately think of the T2062 request for obtaining a certificate of compliance. However, many other situations can trigger a tax obligation, withholding, or legal liability, even when there is no apparent sale. These grey areas represent significant risks for notaries and lawyers working with international clients. This article highlights the main risk situations, often overlooked, and provides practical st

Selling real estate in Canada as a non-resident involves several fees and tax obligations. Here is an overview of the main costs to consider. 1. Withholding Tax at Source Upon Sale This withholding tax is not a cost in itself, as a portion will often be recoverable at subsequent stages, but it is a cash-flow event to anticipate. The buyer is required to withhold 25% of the gross sale price, or 37.875% if the sale is completed in Quebec (or 50% to 62.875% if the property is d

When a non-resident sells real estate in Canada, a T2062 Form must be filed to obtain a Certificate of Compliance from the Canada Revenue Agency (CRA) within 10 days of the sale. As its name suggests, this certificate ensures the tax compliance of the transaction, while limiting the withholding tax to the actual capital gain, rather than the total sale price. But what happens if the certificate is not requested on time? Here are the possible consequences and the steps to tak

If you are a non-resident selling real estate in Canada, the Canadian tax authorities require a certificate of compliance for each property disposition . Many people wonder: can the same certificate be used for multiple properties? The answer is no. Each separate property requires a separate application. 1. Each property requires its own certificate Each property – house, condo, land, or rental building – requires an individual application for a Certificate of Compliance (T20

If you're selling a property with multiple co-owners (sellers), there are specific rules to follow, especially if some are non-residents of Canada for tax purposes . Here's what you need to do, step by step: 1. Each co-owner is treated individually Each seller, whether resident or non-resident, is responsible for their own share of the sale. Each seller's share must be clearly stated (e.g., 50/50, 30/70, etc.). Tax obligations vary depending on each individual's tax status. 2

When a non-resident sells taxable Canadian property, they must file form T2062 to request a certificate of compliance from the Canada Revenue Agency (CRA) and Revenu Québec (if the property is located in Quebec). This certificate of compliance (T2068 or T2064) confirms the tax amounts on the actual gain accepted by the tax authorities and releases the withholding tax that was based on the property's sale price. Average processing times in 2025 Approximately 8 months after th