Get the Finder app 🥳

Track your credit score, free

Free

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?

Updated

Fact checked

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.

Send money to Canada with SendFX

SendFX International Money Transfers

  • Fee-free transfers
  • 30+ currencies
  • Easy to use

Send money to Canada with SendFX

SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.

  • Minimum transfer amount: $2,000
  • Online transfer fee: $0
Go to site
Promoted

How Canada regulates large remittances

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.

What are the penalties in Canada if my recipient fails to file?

If your recipient doesn't list the transfer on their income taxes, they could be charged with tax evasion in Canada. If they can prove that the failure to list the transfer was accidental, they'll have to pay any taxes due, along with a penalty. If the failure to file was intentional, they can be criminally charged.

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 much money can I send to Canada?

As much as you want — there isn't a legal limit on the amount you can send. But some transfer providers impose their own caps, so use a no-limit provider if you're planning a large transfer.

How will my recipient in Canada get the money?

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

To pick up your transfer in person, your recipient may need to provide a 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.

How to send money to Canada


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.


Money transfer services with no maximum sending limit

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 2,000 1 day AUD 0.00 0.96 CAD
4,801
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.96 CAD
4,801
Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.96 CAD
4,801
SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.
Go to site Show details
AUD 250 1 - 2 days AUD 15.00 0.96 CAD
4,787
$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.
Go to site Show details

Compare up to 4 providers

Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

Bottom line

Canada's lack of a gift tax makes it easy to transfer money to an acquaintance or loved one there. While your recipient won't have to worry about any forms, transfers over $10,000 may need to be reported to the IRS.

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.

Frequently asked questions

Image: Shutterstock

Related Posts

International Money Transfer Offers

Important Information*
Logo for TorFX International Money Transfers
TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.

Logo for SendFX International Money Transfers
SendFX International Money Transfers

SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.

Logo for WorldFirst International Money Transfers
WorldFirst International Money Transfers

Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.

Logo for OFX (Ozforex) International Money Transfers
OFX (Ozforex) International Money Transfers

$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site