If I sell my overseas home after moving to Canada, what gain do I report?

Arsen Accounting Services · Question 159 · Sources checked October 29, 2026

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A Canadian resident may need to report a sale of property outside Canada. The Canadian cost used in the calculation may differ from the original purchase cost in the foreign country, particularly when the property was owned before Canadian residency began.

Establish the Canadian starting value

CRA generally treats certain property owned on immigration as acquired at its fair market value when Canadian residency begins, subject to exceptions. Keep evidence of that value. The eventual gain is calculated in Canadian dollars, using appropriate rates for acquisition values, sale proceeds, and relevant costs.

Foreign tax and principal-residence questions require separate review. Do not assume the gain is exempt in Canada because the other country exempts the sale or because the proceeds remain abroad.

Official guidance: [1], [2].

Reconstruct the timeline early

For example, a home bought years before immigration is sold two years after arrival. An independent valuation at the Canadian residency date may be much more useful than simply converting the decades-old purchase price at today's exchange rate.

Gather the cross-border property file

• Canadian residency date and evidence supporting it.
• Original purchase documents and residency-date valuation.
• Improvements, use history, and sale closing statement.
• Foreign taxes assessed or paid and currency records.

Ask your preparer to reconcile the Canadian gain with any foreign calculation and assess available relief. A T1135 review may also be needed depending on the property's use and other foreign holdings. Do not wait until moving the sale proceeds to Canada to address reporting; the sale itself can be the relevant event.