Canada does not impose tax on the dispositions of property by a non-resident other than the disposition of taxable Canadian property.
The list of taxable Canadian properties is provided in the Income Tax Act. Generally, the scope of taxable Canadian property can be divided into 3 distinct groups:
Certain dispositions of taxable Canadian property may be exempt from Canadian taxation under a Canadian tax convention with the State in which the seller is resident. Generally, Article 13 of Canadian tax treaties exempts, from Canadian taxation, the gains from disposition of all properties, other than real property situated in Canada and property belonging to a permanent establishment of the seller in Canada. Thus, a gain from the disposition of a house or other real estate by a non-resident will be subject to tax in Canada.
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