Cross-Border Real Estate Sales — Expert Tax Guidance for Non-Residents

Non-residents selling Canadian real estate face unique tax challenges that, if not properly managed, can lead to unexpected liabilities, delayed closings, and punitive penalties. Whether the property is located in Ontario, Québec, or any other province, federal and provincial tax rules must be met before a sale can legally and efficiently close.

We provide comprehensive, start-to-finish support tailored to non-residents disposing of Canadian property.

Our Services Include:

1. Section 116 Compliance (Federal CRA):
Non-residents are required to notify the Canada Revenue Agency (CRA) of their intent to sell taxable Canadian property by applying for a Certificate of Compliance. Until this is done, a buyer may be obligated to withhold 25–50% of the sale price.

We manage the full process:

• Preparation and filing of Form T2062 and supporting documents.
• Communication with the CRA to expedite certificate issuance.
• Calculations of potential capital gains and related withholding tax.
• Minimizing cash flow disruptions through prompt compliance.

2. Québec Real Estate Sales (TP-1097-V):
In Québec, Revenu Québec imposes its own withholding tax requirements on non-resident sellers. Filing Form TP-1097-V and obtaining a provincial certificate are mandatory.

Our Québec-specific services include:

• Completing and submitting TP-1097-V for provincial clearance.
• Coordinating with notaries and legal advisors in Québec.
• Ensuring all provincial and federal compliance is aligned for closing.

3. Legal & Transactional Support:
Our firm collaborates with your legal representatives, real estate agents, and financial institutions to manage compliance smoothly throughout the transaction lifecycle.

4. Post-Sale Filing and Refunds:
After the sale, you may be eligible for a refund of excess withholding tax. We prepare and file your final Canadian tax return to reclaim overpaid amounts and ensure all reporting is accurate.

Why Choose Us?

Our cross-border tax professionals have extensive experience supporting non-residents in real estate transactions. We work efficiently with both the CRA and Revenu Québec to protect your interests, optimize outcomes, and prevent costly errors.