Can we sell our house before landing in Canada?

[tallguywithbeard]

Hello everyone,

I had applied for Canada with my wife, and we currently have finished our biometrics stage of the application.

We were thinking of selling our residential home in India as soon as we get the call to submit our passports (PPR) with the final deed of officially relinquishing the place a week before we actually fly to Canada.
I had some questions regarding this.

1. Is it possible to sell our house (permanent residence in our home country) once we receive the PPR? Or do we need to hold on to our permanent residence in India until we land in Canada and receive a PR card?

2. If it is possible to sell it before we fly to Canada, what is the procedure we need to follow? Do we have to inform the CIC/IRCC that we are now selling our house?

3. The money earned from selling the house, how do we declare it to the canadian govt, and will we be taxed separately in Canada to bring in the amount?

4. We have not added this amount in our Proof of Funds, as we had the sufficient amount mentioned in the CIC website separately. On top of the existing proof of funds, can we revise the amount of money we are bringing to canada to be much higher than earlier declared as a result of selling the house?

5. Will we have to update our passports with a new address upon selling the house, because technically we will not have any address to give until we land and find a place to rent in Canada?


Any members with any information on this, please share.
I am unable to find this info as most of it just keeps showing me people inquiring to sell their residence as means of proof of funds. We are selling only because we don't want any leftover assets here.


Thank you.

 

[dotslash227]

1. You can sell your house whenever you want, it's your house, you can do whatever you want to do with it, CIC, IRCC or the Indian government. However, I wouldn't recommend selling your house till you get your passports back with the stamped visa / PPR, because you do need a return address to give to the authorities where they can post your passport.

2. Yes, you can sell whenever you want to before you fly to Canada. Once you have got your PPR, you don't need to inform CIC/IRCC that you have sold your house.

3. If you are taking the proceeds from the house to Canada with you, you will need to declare it as part of the funds that you are bringing into Canada. Make sure you are carrying the proof on how you obtained the funds, copies of past titles held by you, proof of transaction and copies of new and old property registration papers, indicating that you legally owned the property and sold it legally.

4. Yes, you can add it to your proof of funds, make sure you add relevant documentation along with it told to you in above point to be able to prove that the funds obtained by you recently are not borrowed and

5. You can get your Canadian address printed on your Indian passport updated through Indian embassy or consulates in Canada once you have rented or bought a new place in Canada. If you want a new Indian address on your Indian passport, you will need to get it updated through MEA in India.

Assuming that you would had not done your landing by the time you sell your property: Since you obtained the funds while you were in India, while being a subject of Indian taxes, any gains on selling property will be subjected to Indian tax laws and will need to pay Indian taxes accordingly, you will not be liable to pay any Canadian taxes on gains made from selling the property.

If you sold your property after landing and getting the PR status : You will be subjected to Canadian tax laws and will have to pay taxes to Canada according to relevant tax laws.

If you decide to use the proceeds from selling your property as deposit or investment in a Savings Account or Fixed Deposit and or any other investment scheme, in India, which will earn you an interest (irrespective whether it would be taxable or non-taxable in India) in future, will have to be declared to the customs officers on landing as an asset on which you will be generating income in future.

 

[tallguywithbeard]

Thank you for the detailed answer.
This helps clear a lot of things up.

I guess we will first wait until we have the passports back with the PPR.

1. You can sell your house whenever you want, it's your house, you can do whatever you want to do with it, CIC, IRCC or the Indian government. However, I wouldn't recommend selling your house till you get your passports back with the stamped visa / PPR, because you do need a return address to give to the authorities where they can post your passport.

2. Yes, you can sell whenever you want to before you fly to Canada. Once you have got your PPR, you don't need to inform CIC/IRCC that you have sold your house.

3. If you are taking the proceeds from the house to Canada with you, you will need to declare it as part of the funds that you are bringing into Canada. Make sure you are carrying the proof on how you obtained the funds, copies of past titles held by you, proof of transaction and copies of new and old property registration papers, indicating that you legally owned the property and sold it legally.

4. Yes, you can add it to your proof of funds, make sure you add relevant documentation along with it told to you in above point to be able to prove that the funds obtained by you recently are not borrowed and

5. You can get your Canadian address printed on your Indian passport updated through Indian embassy or consulates in Canada once you have rented or bought a new place in Canada. If you want a new Indian address on your Indian passport, you will need to get it updated through MEA in India.

Assuming that you would had not done your landing by the time you sell your property: Since you obtained the funds while you were in India, while being a subject of Indian taxes, any gains on selling property will be subjected to Indian tax laws and will need to pay Indian taxes accordingly, you will not be liable to pay any Canadian taxes on gains made from selling the property.

If you sold your property after landing and getting the PR status : You will be subjected to Canadian tax laws and will have to pay taxes to Canada according to relevant tax laws.

If you decide to use the proceeds from selling your property as deposit or investment in a Savings Account or Fixed Deposit and or any other investment scheme, in India, which will earn you an interest (irrespective whether it would be taxable or non-taxable in India) in future, will have to be declared to the customs officers on landing as an asset on which you will be generating income in future.

 

[casts92]

My parents also think about to sell their house, so it was interesting to read this thread

 

[steaky]

My parents also think about to sell their house, so it was interesting to read this thread

Whether or not the transaction can be complete before a certain time, depends on whether or not there is a buyer who accepted your price.

Otherwise, you can keep the house while you became tax resident of Canada.