Large Money Transfer Into Canada: Tax Guidelines, Regulations

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

There are now good and trusted third party institutions and banks who are ready to assist you when it comes to international money transfer to any country in the world including Canada.

Large money transfer to Canada money transfer is even more friendly as its laws are relaxed. For instance, you don’t have to pay any income tax or gift tax on most of the money transfers you send to friends and family in Canada. This means that you can send a large 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 Transfer

There is no law regulating large money transfer in Canada, Canadian government knowing how difficult it is for people to send money to other countries has tried to make large money transfer in Canada less difficult for people. You don’t need to pay tax for most cash gifts you receive in Canada. You can receive as many cash gift as possible without paying any tax. This means you can receive a huge 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 the selling assets like bonds, vehicles, houses, inventory, artwork and so on. In such a case, you will have to pay 50% capital gains tax depending on the situations surrounding the cash transfer. So, you will have to pay half of 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 realized from the selling of assets as capital gains tax. That is to say that 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, that 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 gain, the province in which you live and any tax deduction you qualify for.

How Much You Can Transfer Into Canada

There is no legal limit to the amount of cash you can transfer into Canada. It all depends on the transfer provider or bank which can place their own 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 transferring a large sum of money to Canada is from the Anti-Money Laundering Laws which will be handled by your money transfer provider. Your money transfer provider will then review the necessary documents when submitting your identification for processing. You will still need to keep all records or emails relating to the transfer for future references.

But if you are travelling 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 choose to make a verbal declaration to a border officer at a point of entry.

Any transfer that is 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 any suspicious transfer 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

  • bank to bank transfers
  • cash pickups
  • deposit to mobile wallets.

How To Transfer Money Into Canada

Transferring money into Canada whether large or small can done in multiple ways. You can choose to do it using the banks OE any other way you wish. You are going to 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 very well secured using the bank to bank transfer since all transactions will be recorded in your account record.

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 to consider if you are travelling in and out of Canada. It may be less costly but you have to check if it is safe based on your own situation.

You will have to consider how to transfer a huge amount of cash safely due to the risk of theft and of course, the regulations on bringing a huge amount of cash into Canada. This option is good if you are travelling with a little amount of money.

3rd Party Payment Provider

Another good and smart option is to make use of third party cash transfer providers. Third-party providers can help you to send direct bank transfer at a lower rate than your bank. Today, everything can be done online and it 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 use it to transfer money from any country to a Canadian account.


Formerly known as TransferWise, is a peer to peer technology without any 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 decide to use Paypal, you must have two accounts one in a Canadian bank and the other one for your domestic. bank.

When transferring money with a third party, make sure to check if there are charges from your bank. This depends on the relationship you have with your bank.

Frequently Asked Questions About Canada Large Money Transfer

Q. Is there a limit to transfer money to Canada?

Ans. No, there is no limit to the amount you can transfer to Canada. The only limit may come from your money transfer provider, bank or financial institution. If you want to do large money transfer, you should look for money transfer providers that do not place transfer limits on their customers. You can use OFX or TorFX for your large money transfer to Canada.

Q. Do I have to pay tax on large money transfer to Canada?

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

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

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

Ans. 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 our bank to bank transfer or third-party transfer provider.

Q. Can I bypass Canada large money regulations by splitting up a transfer into smaller transactions?

Ans. Splitting money into smaller amounts is called “structuring” and it is a punishable offence when used to avoid reporting the $10,000 limit.

Structuring is used by money launders to deceive officers, but money transfer service providers receive special training on how to detect fraud and they report it to the Financial Transactions and Analysis Centre of Canada (FINTRAC) who investigates you.

Q. Do I have to report large transfers into Canada?

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

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

Ans. Before you can transfer over $10,000, you need to report to the US government, but this normally is the responsibility of banks and money transfer companies. However,  the IRS comes into play when you’re sending more than $15,000 as a gift or more than $10,000 as a business transaction, or if you have a foreign bank account that’s held more than $10,000 at any point in the past year.