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Laws and legal documents when transferring large sums of money into Canada

Emigrating, studying or starting a business in Canada can involve big money. Should you worry about taxes?

Whatever your reasons for sending money to Canada, there’s a lot to consider. One thing you can't avoid are the laws and legal paperwork that go along with transferring large amounts of money. Before you move your money to Canada, familiarise yourself with these laws and regulations.

How Canada regulates large remittances

When sending a lot of money abroad to friends and family, you might be concerned about taxes — and how they affect your recipient.

Canada does not regulate or tax most gifts of cash sent into the country. In short, citizens can receive as much cash as they'd like without triggering a gift or capital gains tax. Because of this, your recipient shouldn't have to deal with cumbersome legal documents after they've accepted your remittance.

Exceptions come into play when that cash is in the form of property, company shares, designated stock or other securities. In that case, your gift may be subject to 50% capital gains tax, depending on the circumstances of your transfer.

Do I have to report large transfers out of Australia?

If you go through a legitimate money transfer service, you won't need to report anything yourself. For large sums of money, you may have to provide extra documentation to verify your identity. This is because of Australia's laws to prevent money laundering.

Another part of this legislation is for banks and other financial providers to report money transfers of over $10,000 to AUSTRAC, the regulatory agency that monitors financial transactions.

How will my recipient receive my remittance in Canada?

Depending on the provider, your options for delivering money to your loved ones include bank-to-bank transfers, cash pickups and even deposits to mobile wallets.

To pick up your transfer in person, your recipient may need to provide picture ID or a confirmation number to receive your funds. If they own an account with a Canadian bank or money transfer company, they may not be required to provide this information each time you send money.

As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.

Find out how to protect yourself from common money transfer scams.


DISCLAIMER: This article is general advice. It does not consider your own personal circumstances and may not be applicable to you. You should obtain professional advice and consider your own situation before acting on anything contained in our article.


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AUD 200 1 day AUD 0.00 0.941 CAD
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AUD 3,000 1 day GBP 10.00 0.941 CAD
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Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.

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Leah Fallon

Leah Fallon is a writer and editor for Finder.

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