Taxes are to be paid on the sale of property. This amount varies between non-residents and residents of Canada. This amount is to be retained by the seller’s lawyer until a clearance certificate is received from the Canada Revenue Agency (CRA) in connection with the sale of the property. Upon payment, the CRA will issue a clearance certificate to the seller, but not until there has been a contract of purchase and sale with all subjects (conditions) removed. The wait for the certificate is usually 6-8 weeks. If the certificate is not obtained, the purchaser is required to withhold from the sale proceeds, a percentage of the selling price (usually 25-50%).

 

On the closing date (or before), mortgage money is transferred to the seller’s lawyer, and the property title is signed over to the purchaser.

 

Non-residents are required to file an income tax return, and will receive a portion of the taxes paid back.

 

Many countries, such as the U.S., have tax treaties with Canada that prevent you from being taxed in both Canada and your home country. It is advisable to contact a tax accountant in your country for more information.

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Below are resources to assist you in the selling process.