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Large Money Transfer Into Canada: Tax Guidelines & Regulations

Doing large money transfers or international transfers in the past has been a tiresome exercise, not only because it is time-consuming, but it is also costly. However, with the introduction of science, friendly policies from governments and financial institutions, and international laws guiding the transfer of money internationally, the burden of international transfer has lessened.

Good and trusted third-party institutions and banks can assist you with international money transfers to any country, including Canada.

Large money transfer to Canada is even more friendly as their laws are relaxed. For instance, you do not have to pay any income or gift tax on most of the money transfers you send to friends and family in Canada.

This means you can send a considerable amount to friends and family members in Canada from anywhere in the world without incurring extra charges due to tax. But be prepared to pay capital gains tax for money received from selling and disposing of assets.

How Canada Regulates Large Money Transfers

There is no law regulating large money transfers in Canada. Canadian government knowing how difficult it is for people to send money to other countries, has tried to make significant money transfers in Canada less difficult for people.

You do not need to pay tax for most cash gifts in Canada. You can receive as many cash gifts as possible without paying any tax. This means you can receive a considerable sum of money in Canada without undergoing the rigorous exercise of legal documentation after receiving your money.

There is an exception to this when you receive money from selling assets like bonds, vehicles, houses, inventory, artwork, etc. In such a case, you must pay 50% capital gains tax, depending on the cash transfer situation. So, you must pay half the money realized from selling an asset as capital gains tax.

How You Calculate Capital Gains Tax In Canada

Canada collects half of the proceeds from selling assets as capital gains tax. That is to say, half of the money realized from selling an asset is for capital gains tax, and you keep half of the money for yourself.

To calculate your capital gains tax, follow the following steps;

  • Determine the adjusted cost base, which is all the money you paid to acquire the asset, including transaction fees, brokerage fees, and commission.
  • Subtract the adjusted cost base from the Canadian dollar value for the sold asset.
  • Divide the resulting figure into two.

This counts as part of your income, and you will be taxed based on the amount you earned as a gain, the province where you live, and any tax deduction you qualify for.

How Much You Can Transfer Into Canada

There is no legal limit to how much cash you can transfer into Canada. It depends on the transfer provider or bank, which can place their transfer limits. Apart from that, you can transfer as much cash as possible.

If you want to transfer a large amount, you can use such providers as OFX or TorFX, which do not place any transfer limits.

Documents For Large Money Transfer To Canada

Once you are transferring your money through a legitimate money transfer provider, no documents are needed. The only legal action when moving a large sum of money to Canada is from the Anti-Money Laundering Laws, which your money transfer provider will handle.

Your money transfer provider will then review the necessary documents when submitting your identification for processing. However, you will still need to keep all records or emails relating to the transfer for future reference.

But if you are traveling into Canada with CAD$10,000 or more, you must declare this using Form E311, a CBSA declaration form, an Automated Border Clearance kiosk, or a Primary Inspection Kiosk. You can still verbally declare to a border officer at entry.

Any transfer above CAD 10,000 must be reported to FINTRAC, but that is the duty of your transfer provider. Financial institutions or banks can also report suspicious transfers without considering the amount involved.

How You Can Receive Money In Canada

It all depends on your provider on how you can receive Monet transferred to you in Canada. The available options include the following:

  • Bank-to-bank transfers
  • Cash pickups
  • Deposit to mobile wallets.

How To Transfer Money Into Canada

Money can be transferred into Canada, whether large or small, in multiple ways. You can do it using the bank’s OE any way you wish. You will see three easy options you can use the next time you want to transfer money into Canada;

Bank Transfer: 

This is an easy way to transfer money to Canada and very simple to use, but considering the cost, it may not be the best option. Your money is well secured using the bank-to-bank transfer since all transactions will be recorded in your account.

Before using the bank-to-bank transfer, make sure to consider

  • the fees you need to pay
  • the exchange rate being used
  • SWIFT fees may be deducted from your bank.


This is an option if you travel in and out of Canada. It may be less costly, but you must check if it is safe based on your situation.

You must consider how to safely transfer a vast amount of cash due to the risk of theft and, of course, the regulations on bringing a tremendous amount of money into Canada. However, this option is good if you are traveling with little money.

3rd Party Payment Provider

Another excellent and intelligent option is to use third-party cash transfer providers. Third-party providers can help you send direct bank transfers at a lower rate than your bank. Today, everything can be done online, which is less costly and less stressful.

There are many cash transfer providers you can trust; some of them include:

Western Union

Western Union is a third-party money transfer agency providing competitive rates and low transfer fees. You can transfer money from any country to a Canadian account.


Formerly known as TransferWise, it is a peer-to-peer technology without hidden charges. Wise offers an affordable and effective means of transferring money internationally, including in Canada.


This is another cheap and easy way to transfer money to Canada. There are no hidden charges when transferring money with CurrencyFair.


You can also decide to use Paypal for your money transfer to Canada. If you choose to use Paypal, you must have two accounts, one in a Canadian bank and the other in your domestic bank.

When transferring money with a third party, check for charges from your bank. This depends on the relationship you have with your bank.

What are the implications of failing to file in Canada?

A “repeated failure” is when you miss more than one deadline in 4 years to disclose all of your income. A 10% penalty on the unreported amount may be imposed on you if you frequently fail to declare $500 or more of your payment to the CRA. Individuals, companies, corporations, and trusts are all affected by this.

If you haven’t declared all of your income to the CRA, whether intentionally or by mistake, you can report through the CRA’s Voluntary Disclosure Program to avoid prosecution and perhaps even part of the fines and interest fees you owe.


Is there a limit to transferring money to Canada?

No, there is no limit to the amount you can transfer to Canada. The only limitation may be your money transfer provider, bank, or financial institution.

If you want to do large money transfers, you should look for money transfer providers that do not place transfer limits on their customers. For example, you can use OFX or TorFX for your large money transfer to Canada.

Do I have to pay tax on large money transfers to Canada?

No, Canadian authorities do not collect tax for cash gifts or transfers. You can only pay capital gains tax if you transfer money from gains from selling an asset like a house, car, bond, or stock.

For your capital gains tax, you pay 50% tax from selling an asset. That means you will divide the gain and use one as tax while you can pocket the other half.

What is the best way to transfer a large amount of money to Canada?

If you want to transfer a large amount of money to Canada, there are many options for you, but the best three options you can choose from are our bank-to-bank transfer or third-party transfer provider.

Can I bypass Canada’s extensive money regulations by splitting a transfer into smaller transactions?

Splitting money into smaller amounts is called “structuring,” It is a punishable offense used to avoid reporting the $10,000 limit. Money launders use structuring to deceive officers.

However, money transfer service providers receive special training on detecting fraud and report it to the Financial Transactions and Analysis Centre of Canada (FINTRAC), which investigates you.

Do I have to report large transfers into Canada?

If you are doing any transfer over $10,000, the transfer must be reported to FINTRAC, but that is not your responsibility. It is the responsibility of banks and transfer providers. If your transfer provider suspects any fraud, they can also report you.

Do I have to report large transfers out of the US?

Before transferring over $10,000, you must report to the US government, which is typically the responsibility of banks and money transfer companies.

However, the IRS comes into play when sending more than $15,000 as a gift or more than $10,000 as a business transaction. Another way is if you have a foreign bank account that’s held more than $10,000 in the past year.


It is simple for Canadians to receive money transfers from friends or loved ones because there is no gift tax in the country. Although you won’t need to bother about any papers, the company handling the transfer can report transfers exceeding $10,000 CDN to FINTRAC.

Be cautious of potential fraud, as with any overseas money transfer, and only accept money from someone you know for reasons that can be independently verified. Protect yourself against such scams by working with a trusted source.

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