Accountancy

If you are planning on being a non-permanent resident of Canada, you are not required to file a Canadian income tax return, unless you receive income arising in Canada (for example, rental income on your second home).

However, if you are planning on emigrating and becoming a permanent resident, it is crucial to get proper advice and estate planning guidance prior to emigrating. We can refer you to accountants, experienced in your special situation.

You will benefit from the services of an accountant, however, if you decide to sell your second home in Nova Scotia in the future. As a non-resident, you are liable for capital gains tax, currently standing at 25%. Since the buyer of the property is liable for this tax if the non-resident seller does not comply, standard practice is for the lawyers to hold back a portion of the sale price (in the range of 25%), from which the applicable capital gains tax is paid. This must be submitted within 10 days of the completion of the sale along with the required Canada Revenue Agency form. The services of an accountant ensure that this happens efficiently and that you don’t become liable for late fines of up to $2,500. Once the certificate of compliance has been received by the lawyers, the balance of the funds withheld will be paid to you.

However, it is possible to reduce how much capital gains you ultimately pay, and we can advise you as to the best ways to reduce your liability.