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Selling real estate overseas to bring proceeds to Canada – is there a tax to pay?
Filed under: Canada Real Estate

We’re selling real estate overseas to transfer proceeds to Canada. The estate was used as primary residence until 2000 for more than 2yrs, after that occupied by relatives. Now if we sell it and bring money to Canada – is there a tax to pay, if Yes, what %? Is it included in regular Income? or it is treated as Capital gain?
Thanks all!

Yes, that would be taxable to a Canadian resident.

Tax treaty rules may apply, if the country you own the real estate in has a tax treaty with Canada; they may serve to reduce the amount of tax you pay to Canada.

You should find a tax professional that is familiar with both Canada’s tax rules and the country in question.

admin @ 2:47 am

2 Comments for 'Selling real estate overseas to bring proceeds to Canada – is there a tax to pay?'

  1.  
    ryan x
    February 5, 2010 | 8:01 am
     

    Residue Canada, I mean Revenue Canada will definitely want a slice of that pie. You really should consider contacting them before you sell… because if it counts against your personal income tax, it will knock you waaaaay into a much higher bracket. My parents sold a property and actually got billed for more money than they made that year because of the capital gains. Also, you might want to set up a consultation with an income tax specialist.
    References :

  2.  
    CanadianBlondie
    February 5, 2010 | 8:39 am
     

    Yes, that would be taxable to a Canadian resident.

    Tax treaty rules may apply, if the country you own the real estate in has a tax treaty with Canada; they may serve to reduce the amount of tax you pay to Canada.

    You should find a tax professional that is familiar with both Canada’s tax rules and the country in question.
    References :

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