Money You Bring Into Canada: Is It Taxable?

The difference between principal and the returns it earns, and proof of the source of funds

Scott Tang, CPAUpdated 2026-11-052026 rules4 min read

When you immigrate, you may bring years of savings or the proceeds from selling a home to Canada — the principal itself is not taxed. Canada taxes income, not money moving from one place to another. What is taxed is the interest, dividends and capital gains the money earns after you land. Also, when the money comes in, the bank will ask where it came from, and cash you carry across the border has to be reported.

Principal isn't taxed

Savings, home sale proceeds and gifts from before you land aren't taxed when you bring them in

Returns are reported

Interest, dividends and gains earned in Canada or abroad after you land

$10,000

Cash or monetary instruments of $10,000 or more carried into Canada must be reported to customs

$10,000

The bank reports international wire transfers of $10,000 or more to FINTRAC

Keep principal and returns separate

Principal

Savings from before you land

Brought into Canada

Not taxed

You need to be able to explain the source

Returns

Deposited in a Canadian bank, or used to buy GICs or stocks

Interest and dividends each year, gains when you sell

Reported under Canadian rules

Returns on money left in China and never transferred must be reported too

Where the money comes from, and what to prepare

Source	Evidence to prepare The bank and the CRA may ask to see it	Tax points
Savings from years of salary	✓Pay slips, tax payment certificates, bank statements	—Not taxed
Sale of a home in China	✓Purchase and sale contract, title transfer records, tax payment receipts	—Not taxed in Canada if it isn't taxable Canadian property and was genuinely sold before you became a resident; if sold afterwards, only the increase in value after landing is reported
Gift from parents	✓Gift declaration, proof of your parents' funds, proof of relationship	—Canada has no gift tax
Sale of shares in a company in China	✓Share transfer agreement, tax payment certificates	—Not taxed in Canada if completed before you land
Inheritance	✓Notarized inheritance documents, death certificate	—Not taxed in Canada; later returns on it must be reported

Savings from years of salary

📄 Evidence to prepare: ✓Pay slips, tax payment certificates, bank statements
💡 Tax points: —Not taxed

Sale of a home in China

📄 Evidence to prepare: ✓Purchase and sale contract, title transfer records, tax payment receipts
💡 Tax points: —Not taxed in Canada if it isn't taxable Canadian property and was genuinely sold before you became a resident; if sold afterwards, only the increase in value after landing is reported

Gift from parents

📄 Evidence to prepare: ✓Gift declaration, proof of your parents' funds, proof of relationship
💡 Tax points: —Canada has no gift tax

Sale of shares in a company in China

📄 Evidence to prepare: ✓Share transfer agreement, tax payment certificates
💡 Tax points: —Not taxed in Canada if completed before you land

Inheritance

📄 Evidence to prepare: ✓Notarized inheritance documents, death certificate
💡 Tax points: —Not taxed in Canada; later returns on it must be reported

How to bring the money in

1
Use proper channels
Buy and send foreign currency under China's foreign exchange rules
2
Prepare source proof
Have it organized before you transfer
3
Bank wire transfers
Large amounts sent in several parts also attract attention; don't deliberately split them
4
Carrying cash
Report $10,000 or more when you enter Canada
5
Keep records
File them with your landing asset list

Points to watch

Report cash when you enter
If the cash, cheques, money orders and similar instruments you carry total $10,000 or more, report them to the CBSA when you enter Canada; failing to report can lead to seizure and penalties. Reporting itself involves no tax.
Your account may be put on hold
Until the bank is clear about the source, it can hold the transaction. If you're paying a down payment on a home, get the money in place early.
The foreign currency itself
Transferring principal isn't income, but once you are a resident, selling the foreign currency itself may give rise to a separate foreign exchange gain or loss.
Money left in China counts too
Money you haven't transferred that stays in accounts in China is part of your foreign assets; from the second year, you must file the T1135 if your foreign assets total more than $100,000.

How Sheng Qian CPA can help

Source documents organized in one go
Based on where your money comes from, we list the documents to prepare, so you have them ready when the bank asks.
A tax review
We check whether there is any income or gain behind the money that arose after you landed and must be reported in Canada.
After the money arrives
Later interest, dividends and the T1135 become part of your annual return. For fees, see "What Sheng Qian CPA Can Do for Newcomers and People Leaving Canada: Support on Arrival and on Departure" in this series.

Sources

Disclaimer

This article is general information only and is not tax or legal advice. Everyone's situation is different; please consult a CPA about your specific arrangements, and a qualified local adviser about Chinese foreign exchange matters. Service fees are as set out in our written quote.

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