Non-Resident Status and Property Ownership in Quebec
First, let’s clarify what it means to be a non-resident of Canada. A non-resident is someone who does not ordinarily live in Canada and does not meet the criteria for tax residency. However, owning Canadian property, whether as a primary residence, rental, or investment, is permitted regardless of residency status.
Non-residents can sell Canadian real estate in Quebec, but must comply with specific rules, especially when it comes to tax reporting and withholding. These rules exist to ensure the Canada Revenue Agency (CRA) collects the appropriate taxes on the transaction.
Can Non-Residents Sell Property in Quebec?
Yes, non-residents are legally allowed to sell property in Quebec. However, the process involves certain Canadian tax obligations and regulatory steps:
- Non-residents must report the sale to the CRA.
- They must notify the CRA before or at the time of the sale using Section 116 forms if the property qualifies as Taxable Canadian Property.
- Sellers are required to pay any applicable taxes or arrange for a Non-Resident Withholding Tax to be withheld by the buyer or the buyer’s representative.
Failure to comply with these rules can result in penalties or delays in completing the transaction.
Practical Steps for Non-Residents Selling Property in Quebec
Selling Canadian real estate as a non-resident involves more than listing the property. From managing real estate transactions remotely to meeting tax filing obligations, careful planning is essential. Here’s a practical guide for non-residents navigating the Quebec property market:
1. Hire a Knowledgeable Realtor
Finding a Quebec-based realtor who understands the specific rules for non-resident sellers can simplify the process. A realtor will handle listings, negotiations, and help you with the purchase and sales agreement. They will also coordinate with local financial institutions for deposits and payments.
2. Engage a Tax Accountant Experienced in Canadian Tax Laws
To navigate the tax implications, including withholding, filing, and claiming refunds, hire a tax accountant with experience in Canadian tax compliance rules and non-resident filings. They will help you obtain a Canadian Tax ID, prepare the Canadian tax return, and ensure you meet CRA and Revenue Quebec requirements.
3. Consider Selling to a House Buying Company
If managing a traditional sale seems overwhelming, especially from overseas, you might opt to sell directly to a house-buying company. These companies purchase homes quickly for cash, removing the stress of showings, repairs, and waiting for buyer financing. Though the purchase price may be lower than market value, the convenience often outweighs the trade-off for non-residents.
Here is why selling to a house-buying company makes everything simpler:
- No Need to Travel: You can complete the entire sale remotely, avoiding expensive travel, time off work, or coordinating with local professionals in person.
- Fast, Guaranteed Sale: House buying companies typically offer quick, cash-based transactions, so you avoid the delays of traditional real estate deals, including buyer financing fall-throughs.
- No Repairs or Renovations Required: These companies buy properties “as-is”, saving you the time, stress, and cost of preparing the home for market, especially helpful when you’re managing things from abroad.
Are there reputable companies that buy houses for cash?
4. Prepare for Transaction Costs and Realtor Commissions
Remember to factor in transaction costs such as realtor commissions (typically around 5%), legal fees, and potential capital gains tax when deciding your asking price or evaluating offers. Considering these additional costs before selling your Canadian property will help determine the perfect gross selling price to maximize the profit you make on the property.
5. Obtain a Tax Clearance Certificate
If you’re a non-resident selling property in Canada, the buyer must withhold 25% of the sale price for the CRA unless you apply for a Tax Clearance Certificate. This certificate calculates the actual tax owed based on your capital gain, often reducing the withheld amount.
Applying before closing ensures compliance, avoids delays, and prevents the buyer from withholding more than necessary. It’s a crucial step for non-resident sellers.
6. Handle Documentation and Legal Formalities
Ensure all paperwork, including the purchase and sales agreement, is signed properly and notarized as required under Quebec law. Many steps can be done remotely, but working with a trusted local notary or lawyer is advisable to ensure all filing deadlines are met for a smooth sale.
Selling a House in Quebec: How is it Different for Residents and Non-Residents?
Selling a house in Quebec comes with unique steps, but the experience can differ significantly depending on whether you’re a resident or not. This table breaks down the key differences so you get a better idea of what to expect depending on how you are selling.
Selling as a Resident | Selling as a Non-Resident | |
Presence During Sale | Usually present for showings, meetings, and closing | Often remote; relies on representatives or digital tools |
Communication | Direct and in-person communication | Mostly virtual through phone, email, video calls |
Property Management | Can personally manage maintenance and showings | Needs to hire local property managers or agents |
Document Signing | Typically signs documents in person | Uses electronic signatures or powers of attorney |
Legal Representation | May handle some legal matters personally, although notaries are still necessary | Depends heavily on Quebec notaries and representatives |
Negotiation | Often negotiates face-to-face | Negotiates remotely, which may cause delays |
Time Zone Differences | Not an issue | Must manage timing across different time zones |
Access to Property | Easy access for inspections and showings | Requires trusted local contacts to facilitate access |
Sell Your Property Quickly with Vendu24h
At Vendu24h, we make it easy and convenient for non-residents to sell property in Quebec. We buy houses directly, which means you can skip listings, showings, and long delays. Whether you’re abroad or simply want a quick sale, we handle the process efficiently and work with trusted notaries to ensure everything runs smoothly. You don’t need to be in Quebec to sell, you can count on us for a fast, flexible, and stress-free experience!