Foreign Transfer Duty Declaration for Canada

Foreign Transfer Duty Declaration Template for Canada

A Foreign Transfer Duty Declaration is a mandatory legal document required in Canadian jurisdictions for property transactions involving foreign buyers. This declaration forms part of the property transfer process and requires detailed disclosure of the buyer's foreign status, source of funds, and compliance with federal and provincial regulations, including the Prohibition on the Purchase of Residential Property by Non-Canadians Act. The document ensures transparency in foreign property ownership and facilitates proper assessment of applicable taxes and duties under Canadian law.

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What is a Foreign Transfer Duty Declaration?

The Foreign Transfer Duty Declaration is a crucial document required in Canadian real estate transactions involving non-resident or foreign buyers. This declaration became increasingly important with the implementation of various foreign buyer regulations and taxes across Canadian provinces, particularly in markets like British Columbia and Ontario. The document serves multiple purposes: it helps authorities track foreign investment in Canadian real estate, ensures compliance with anti-money laundering regulations, and facilitates the correct assessment of applicable taxes and duties. The declaration requires comprehensive information about the buyer's status, the property being purchased, and the transaction details, making it an essential tool for maintaining transparency and compliance in international property transactions. It must be completed accurately to avoid potential legal issues and ensure proper processing of the property transfer.

What sections should be included in a Foreign Transfer Duty Declaration?

1. Declaration Details: Date, jurisdiction, and declaration reference number

2. Declarant Information: Full legal name, contact details, citizenship status, and residential address of the person making the declaration

3. Property Details: Complete description of the property including legal description, municipal address, and property identifier number

4. Purchase Transaction Information: Details of the purchase including purchase price, deposit amount, and closing date

5. Foreign Status Declaration: Explicit declaration of foreign buyer status and eligibility under the Prohibition on the Purchase of Residential Property by Non-Canadians Act

6. Source of Funds Declaration: Declaration regarding the source of funds used for the purchase, including any foreign sources

7. Tax Residency Status: Declaration of tax residency status and any applicable tax treaty benefits

8. Compliance Statement: Statement confirming compliance with all applicable laws and regulations

9. Acknowledgment of Obligations: Acknowledgment of ongoing obligations and reporting requirements

10. Certification: Formal certification of the truth and accuracy of all declarations made

What sections are optional to include in a Foreign Transfer Duty Declaration?

1. Corporate Ownership Structure: Required when the buyer is a corporation, detailing ownership structure and beneficial owners

2. Trust Declaration: Required when property is held in trust, detailing trust structure and beneficiaries

3. Exemption Claims: Required when claiming any exemptions from foreign buyer restrictions or taxes

4. Provincial Specific Declarations: Additional declarations required by specific provinces (e.g., BC's speculation and vacancy tax)

5. Multiple Buyer Declaration: Required when there are multiple buyers, detailing each buyer's foreign status

6. Permanent Resident Declaration: Required for permanent residents, including confirmation of status and time in Canada

What schedules should be included in a Foreign Transfer Duty Declaration?

1. Schedule A - Identity Documentation: Copies of passport, permanent resident card, or other identity documents

2. Schedule B - Property Documentation: Property title documents, purchase agreement, and related property documentation

3. Schedule C - Corporate/Trust Documents: Corporate registration, trust agreements, or other entity documentation if applicable

4. Schedule D - Source of Funds Evidence: Bank statements, investment documents, or other proof of funds sources

5. Schedule E - Tax Residency Documentation: Tax residency certificates or other tax-related documentation

6. Appendix 1 - Supporting Declarations: Any additional statutory declarations or affidavits required

7. Appendix 2 - Compliance Documentation: Documentation proving compliance with foreign buyer regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Declaration Form

Cost

Free to use
Relevant legal definitions
Relevant Industries

Real Estate

Banking and Financial Services

Legal Services

Tax Advisory

Property Development

Investment Management

Immigration Services

Public Sector

Construction

Property Management

Relevant Teams

Legal

Real Estate

Tax

Compliance

Finance

Property Management

Investment Advisory

Risk Management

International Business

Operations

Relevant Roles

Real Estate Lawyer

Tax Advisor

Real Estate Agent

Property Manager

Compliance Officer

Legal Counsel

Tax Manager

Real Estate Transaction Coordinator

Immigration Consultant

Foreign Investment Specialist

Property Development Manager

Real Estate Investment Advisor

Title Officer

Conveyancer

Financial Controller

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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