Non Resident Sellers

If you are a non resident of Canada who is considering listing your Whistler property for sale, there are legal and accounting issues that arise that should be discussed with your Lawyer and Accountant.

The Income Tax Act of Canada stipulates that non resident sellers must report their property sale to the Canadian Revenue Agency within 10 days of the completion of the transaction. Any person purchasing Canadian real estate from a non resident has an obligation to withhold and remit to the Canadian Revenue Agency (CRA) a minimum of 25% of the gross sale proceeds with respect to the purchase. A purchaser who fails to withhold the applicable tax amount can be liable for it. 

The withholding tax requirements can be reduced or eliminated if the seller obtains a "Certificate of Compliance" or Clearance Certificate from CRA on a timely basis. The certificate certifies that a certain amount of money payable for the taxes. The amount owing is deducted from the sale proceeds and sent to CRA by the vendor. As the certificate is required on the closing date, it should be applied for in advance of the closing once all subjects have been removed. The typical wait time for a clearance certificate is usually around 6 - 8 weeks but can take up to 16 weeks.

More information can be found at the Canada Revenue Agency website; Disposing of or acquiring certain Canadian property

***Please note: The above information is for reference purposes only and does not constitute professional advice. For more information please consult legal and accounting professionals as appropriate. For a list of Lawyers and accountants who can assist on the topic of Non residents selling Whistler real estate, please visit my Links page.