# Bringing money back to Canada from Panama



## Havinfun131 (Nov 23, 2013)

Hello, I am in need of some advice. 
What are the tax implications for transferring money back into Canada from Panama? Can it be sent in a large sum or would drawing from an off-shore investment be a less taxing option?
I am a Canadian citizen but sold my primary residence (currently renting in Canada) and will be selling the property I co-own with my future ex-husband. I currently hold bank accounts in both countries. 
I know this is a messy situation but it has to be dealt with in one way or another. 
Thanks in advance for any reply.


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## AltaRed (Jun 8, 2009)

There are no restricitions on the amount of money brought into Canada. The key is that any amount of $10000CAD or more must be reported to the authorities. If you are doing it in person, by mail, or by courier, check out the requirements here http://www.cbsa-asfc.gc.ca/publications/pub/bsf5052-eng.html 

The easiest way is via wire transfer from a Panamanian bank (or a Canadian subsidiary in Panama) to a Canadian bank in which case the receiving institution will report the transaction to FINTRAC. There may, or may not, be a delay in the money actually being deposited to your Canadian account. Your Panamanian institution will need the wire transfer details from your Canadian bank.

Added later: There are no Canadian taxes on money transferred into Canada. I do not know if there are any Panamanian restrinctions or exit taxes on money leaving the country


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## Havinfun131 (Nov 23, 2013)

Thank you AltaRed!


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## liquidfinance (Jan 28, 2011)

As for taxation, any cash you had was deemed to have been converted to Canadian dollars the day you became a pr of Canada. 

Depending on the time since that date you will have either a capital gain or loss depending on the present exchange rate. 
I'm not see how much the cra goes into this but I guess large transfers over $10k may be looked into as they are reported anyway.

Ah I just read your post again. 

In the eyes of the Cra you disposed of your property in Panama at fair market value the day you moved to Canada. You are liable for capital gains tax in Canada on the difference between the value you sold for and the market value when you moved here.


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## Guban (Jul 5, 2011)

Havinfun131 said:


> What are the tax implications for transferring money back into Canada from Panama? Can it be sent in a large sum or would drawing from an off-shore investment be a less taxing option?
> I am a Canadian citizen but sold my primary residence (currently renting in Canada) and will be selling the property I co-own with my future ex-husband. I currently hold bank accounts in both countries.


It is unclear to me if you are still a resident of Canada for tax purposes. 
If you are, there may not be any tax implications. Be careful about liquidfinance's reply. You may be able to declare the property in Panama as your principal residence and avoid any capital gains taxes, or reduce these taxes depending on how long you owned it. 
If you gave up Canadian residency, then you would not face capital gains taxes on the property's growth while you are not a resident.


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