Non-Resident Sellers
Special considerations for international sellers of Canadian real estate. We've helped clients from around the world successfully sell their properties.
Key Considerations for Non-Residents
Selling Canadian property as a non-resident involves additional tax and legal requirements. Here's what you need to know.
Certificate of Compliance
Non-residents must obtain a Certificate of Compliance from the CRA before closing. This involves filing Form T2062 and may require a portion of the sale proceeds to be held back until approval is received.
25% Withholding Tax
Without a Certificate of Compliance, the buyer's lawyer must withhold 25% of the gross sale price and remit it to the CRA. This can be recovered when you file your Canadian tax return, but it ties up significant funds.
Capital Gains Tax
As a non-resident, you'll pay tax on any capital gains from the sale of Canadian real estate. The gain is calculated as the sale price minus your adjusted cost base and selling expenses.
Property Tax Clearance
Ensure all property taxes are paid up to date. Your lawyer will obtain a tax certificate to verify there are no outstanding amounts owed on the property.
The Selling Process for Non-Residents
Here's a step-by-step guide to selling your Canadian property from abroad.
List Your Property
Work with us to list and market your property. We handle everything remotely with video consultations and digital signatures.
Accept an Offer
Review and accept an offer. We can conduct negotiations via phone, email, or video call regardless of your time zone.
Apply for Certificate of Compliance
File Form T2062 with CRA as soon as possible. This can take 4-8 weeks, so early application is crucial.
Closing Day
Your lawyer handles the closing and wire transfers funds to your account. If the certificate isn't received, 25% is held back temporarily.
File Canadian Tax Return
File a Canadian tax return to report the sale and recover any excess withholding tax. A Canadian accountant can assist remotely.
How We Help Non-Resident Sellers
- •Virtual property showings and video consultations across time zones
- •Digital signature capability for all documents
- •Coordination with your Canadian accountant and lawyer
- •Guidance on CRA Certificate of Compliance process
- •Secure international wire transfer coordination
- •Experience with clients from 20+ countries