The Canadian tax system is based on paying taxes on the worldwide income.

So, if a Canadian resident sells property abroad and makes a profit, he may be liable to pay the Canadian Capital Gains Tax.

There are rules in place to avoid double taxation but proper reporting of the sale is key to save taxes avoid any penalties.

If you hold a property outside Canada worth more than $100,000, you may be required to report that to the Government using form T1135 even if no income was generated.

Experts at Softron tax have years of experience in tax planning with foreign assets.