Sending $10,000+ to Canada? What you need to know about tax laws.
Laws and documents for sending money to Canada

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

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

The US and Canada share the longest international border in the world. But when sending money over that border to Canada, both you and your recipients could face laws and legal paperwork, depending on how much you’re gifting.

Before you move your money out of the US, learn when our northern neighbo(u)r requires taxes on cash remittances.

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 the US?

With so much attention on money entering and leaving the country, if you fail to report large sums out of the US, don’t know you have to report them or don’t report them correctly — it will likely be discovered.

Although Canada and US are close neighbors, you’ll need to abide by US laws if you’re sending more than $10,000. In the years after 9/11, banks are required to report cash transactions into and out of the country. And money transfer companies are sometimes held to reporting thresholds as low as $1,000.
Sending a lot of money out of the country? Know what the IRS expects of you.

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.
How to set up a business entity in Canada

Money transfer services with no maximum sending limit

I want to send

to

Min. Transfer Amount Online Transfer Fee Description CTA Details
USD 1,000 USD 0 Exclusive offer: $0 transfer fee
No-limit transfers with competitive exchange rates for 100+ currencies.
Go to site Show details
USD 1,000 $0 Exclusive exchange rate discounts
No-maximum limit transfers with competitive exchange rates for 100+ currencies.
Go to site Show details
USD 0 EUR 0 $0 transfer fees with rates at never more than a 2% markup. Go to site Show details

Compare up to 4 providers

Frequently asked questions

Was this content helpful to you? No  Yes

Ask an Expert

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

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com 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 and Conditions and Privacy Policy.

2 Responses

  1. Default Gravatar
    OMApril 13, 2018

    I am indian working on work permit in Canada

    My friend from USA want to send cash via bank transfer to my account in canadian bank.
    I have following questions.
    1-what will be tax implication?
    2-Do i have to add this amount into my income and pay tax?
    3- what happens if i spends this money for stocks and earn cspital gain? Do i have to share the gain with my friend?

    • Staff
      JoshuaApril 16, 2018Staff

      Hi OM,

      Thanks for getting in touch with finder. I hope all is well for you today. :)

      Let me try to answer your question one by one.

      1. Whether the money sent to you will be taxed or not depends on the type of money you are going to receive. If it is a gift, generally, you don’t get taxed for that. However, 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.

      2. Again, it depends on the purpose of the money.

      3. If you spend this money for stocks and earn capital gain, then that’s the time you need to pay taxes. Sharing the gain to your friend depends on you. You don’t have any legal obligation unless you have a signed contract or any legal agreement.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

US International Money Transfers Offers

Important Information*
HiFX International Money Transfers

Transfer money into 20 currencies and schedule regular payments. $5 fee waived for transfers over $5,000.

WorldRemit International Money Transfers

Use promo code FINDER to send your first transfer at no fee to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

World First Foreign Exchange

Exclusive offer: $0 transfer fee
No-limit transfers with competitive exchange rates for 100+ currencies.

TransferWise International Money Transfers

Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

Go to site