Canadian Non-Resident Real Estate Withholding Tax Estimator
When a non-resident sells real estate in Canada, the Canada Revenue Agency (CRA) mandates a withholding tax. Without a Certificate of Compliance, the buyer must withhold 25% of the gross sale price. With a Certificate, this can often be reduced to 25% of the net capital gain. Use this tool to estimate these amounts.
Property & Sale Details
Estimated Withholding
Scenario A: NO Certificate
The buyer’s lawyer must withhold 25% of the gross sale price.
Scenario B: WITH Certificate
Withholding is reduced to 25% of the net capital gain (T2062). Note: further adjustments may apply if renting (T2062A).
*Disclaimer: The 25% withholding tax is a prepayment of expected Canadian income taxes, not the final tax liability. Once the actual tax return is filed (Section 115), a refund may be issued or further tax owed. If the property was rental property claiming CCA, additional withholding (often 50% on recapture) via T2062A may apply. This tool is for estimation purposes only and should not replace professional tax or legal advice.
