Tax law S116 stipulates that non-tax residents who sell investment properties in Canada must also submit 25% of the mortgage sales price to the tax bureau, and your lawyer will be responsible for withholding it. Within 10 days after the property is transferred, you need to apply to the tax bureau through an accountant
Tax clearance certificate (
certificate of compliance ), which is used to review the net income generated after the sale of the property. Once approved, the lawyer will return the remaining amount of the previously withheld amount. If you have more than one property to deal with, you need to submit a tax clearance application separately. At the same time, you need to be aware that the application takes time, and the fastest tax clearance certificate will take three months. If you cannot obtain the tax clearance certificate on time, the lawyer will hand over the withheld 25% directly to the tax bureau.