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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

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