Home Buyers : Beware of buying from Non-Residents of Canada If you are purchasing a property, you must be careful about the residency status of the seller. The income tax act of Canada imposes an obligation on the buyer to withhold 25% of the purchase price from the seller if they are a Non-Resident of Canada. The buyer is not required to withhold the 25% if the seller provides a clearance certificate issued by the CRA. However, if the buyer does not receive the clearance certificate or fails to withhold the 25%, they could be held liable for any taxes owed by the seller. More info check with Canada Revenue Agency.
