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When a non-resident sells Canadian real estate, he/she is required to pay the appropriate amount of taxes on any capital gain.The normal Canadian tax rates will be applied to 50% of the gain.However, a non-resident is required to pay an estimate of the tax before the sale, an amount equal to 25% of the gain.This amount is to be retained by the seller’s lawyer until such time as a clearance certificate is received from the Canada Revenue Agency (CRA) in connection with the sale of the property.Typically these costs average in the 0 to 0 Cdn range.3: Legal Fees: This fee would be what the lawyer actually charges you for his time to handle your transaction.

The deposit is placed in a trust account and is credited towards the purchase price once the offer has been accepted by both the seller and the buyer and the transaction is complete.

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 non-resident seller should file a Canadian income tax return for the year in which the sale occurs and should expect to receive a refund of a portion of the taxes paid. 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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