Non-Resident Tax When Selling Canadian Property

Reviewed October 2026. Non-resident sellers of taxable Canadian property should obtain advice early from a Canadian tax professional and real estate lawyer. The rules depend on the property, use, ownership and seller's status.

Certificate of compliance

A non-resident may file the applicable CRA request for a certificate of compliance. Without a certificate or acceptable arrangement, the purchaser may have to withhold and remit tax from the proceeds. The applicable rate depends on the type of property and current law; do not rely on an old percentage in a general article.

Timing and documents

A proposed disposition can often be reported before closing. If filing after the disposition, CRA deadlines and penalties apply. Gather purchase and sale documents, ownership information, identification or tax number information, adjusted-cost-base records, rental records and eligible expense receipts.

Final tax return

A certificate and withholding are not the final tax calculation. A Canadian tax return may still be required to report the disposition and calculate the final amount. A refund is not automatic.

Important cautions

The original document includes percentages, deadlines, processing times and tax examples that may become outdated. Non-resident sellers should confirm current CRA forms, rates, UHT obligations, filing requirements and payment instructions directly with CRA and their advisors.

Official source: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t2062/request-non-resident-canada-certificate-compliance-related-disposition-taxable-canadian-property.html