Tax clearance process and final tax calculation for non-tax residents selling houses and off-the-plan properties (2020)

Foreigners in Canada cannot avoid paying taxes when selling properties or pre-sale properties. If you don't get the tax clearance certificate, you won't get the full sale proceeds.

Many customers are confused about whether they are tax residents or non-tax residents. They think that as long as they actively file their taxes, they are tax residents. As a result, when they sell their houses, the sale proceeds are withheld by lawyers and they cannot get them back for a year or two. They even have to fly back to Canada twice to handle taxes, causing a lot of unnecessary losses.

 

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