Non-resident sellers

Non-resident sellers should be aware that a portion of the sales proceeds will be withheld until the non-resident seller provides a Clearance Certificate from the Canada Revenue Agency. This can significantly reduce the sales proceeds immediately available to the seller. The Clearance Certificate can only be obtained once taxes owing are paid and the process of obtaining the Clearance Certificate can take up to two months. The amount of the holdback ranges between 25% and 50% of the of the purchase price.

Residency for tax purposes is determined by a number of factors, including residential ties, length of time and continuity of time spend in Canada as well as intention.

A non-resident seller should obtain the services of a tax professional. We can refer you to a tax lawyer or accountant if you do not have one. See our links to associated professions.

Disclaimer

Please remember that the information provided on this website is not legal advice and is intended as general information only. We try to keep this website as accurate and up-to-date as possible but laws, regulations, policies and practice are constantly changing. Please talk to one of our lawyers. Contact us