How to receive inheritance money from abroad: Fees, limits and tax implications in [2025]

If you have inherited money from someone based overseas, you’ll need to navigate the process of managing taxes both overseas and in Canada, and repatriating your money to Canada.

The tax implications of receiving a foreign inheritance can vary pretty widely depending on the country the deceased person lived in and the value of the payment. Your own residence may also make a difference as some taxes can differ in various provinces.

This guide covers some important things to think about, and also touches on some low cost providers such as Wise and OFX which can be a good choice for transferring inheritance funds from overseas to Canada.

What happens if you inherit money from another country?

If a friend or loved one has died overseas you may need to help with executing the will and ensuring that any inheritance can be transferred to the intended recipients.

When someone dies, their estate – which can include their money, property and other goods – will be managed in accordance with the law in the country they died in. There may be taxes – such as estate tax – to pay before any inheritance can be distributed.

Taxes can apply both in the country the individual died in, and in Canada if you intend to bring the inherited funds back.

If you’ve been named as the executor of a will, you’ll likely be responsible for some or all of the following steps:

• Making sure all beneficiaries of the will are notified

• Valuing and managing the estate

• Obtaining the authority to administer the estate

• Ensuring that all tax obligations are properly addressed

• Resolving any outstanding debts

• Overseeing the division of the estate

In this guide, we’ll cover how you can receive inheritance money from abroad safely with low costs, and the tax implications you’ll need to consider.

How to bring inheritance money to Canada from abroad

If you’ve inherited money from overseas, you can bring the funds to Canada in the following ways:

• Carry cash or a check to deposit to your Canadian bank account

• Make a bank transfer from a bank in the country the individual died in, to your Canadian bank

• Use a money transfer provider to send money from the originating country to a Canadian bank

• Open a multi-currency account to receive the funds in the foreign currency without converting back to CAD

Each of these options has its own pros and cons. Carrying cash or a high value check across national borders can be simple to arrange, but it’s risky, and will require you to report the funds to customs officials upon entry to Canada. On the other hand, sending money through your bank can come with pretty high fees, but it’s a convenient way to repatriate your funds to your Canadian bank account.

For many people, using a specialist money transfer service – like Wise, OFX or XE Money Transfer – can be a good solution, offering a convenient and cheap way to send and receive a high value transfer.

We’ll look at these ways to transfer inheritance money from overseas to Canada in more detail next.

Best ways to transfer your inheritance money from overseas to Canada

Managing the transfer of your inheritance payment electronically is secure and convenient. You can use a bank to make a wire to Canada, or compare some specialist money transfer services to see if you can get a cheaper transfer with a better exchange rate. Here are a few great money transfer providers to consider:

*The speed of transaction claims depends on individual circumstances and may not be available for all transactions

**Details correct at time of research – 27th July 2025_._

Wise

Wise operates in Canada and many other countries globally, supporting international transfers to 140+ countries which you can arrange online and in the Wise app.

Currency exchange uses the mid-market exchange rate with low transparent transfer fees from 0.48% and high maximum limits (usually around 1,000,000 GBP equivalent).

If you’re sending a high value transfer – more than the equivalent of 20,000 GBP – there’s an automatic discount on the fees you pay, and you can get dedicated support from Wise’s high value payments team.

You can also open a Wise account to send and receive international payments in a broad range of currencies. Accounts come with account details so you can get paid by others in 20+ currencies and without needing to convert back to CAD if you don’t want to.

How to receive inheritance money from abroad with Wise

Receive payments through Wise either to your bank account in the account’s designated currency, or into a Wise multi-currency account in 20+ currencies using local and SWIFT account details.

OFX

OFX offers international transfers in more than 50 currencies, which often have no upfront transfer fee if you’re sending large payments. The fee that’s applied may vary depending on where the payment originates, and you can arrange your payment online, in the OFX app, or on the phone with a broker service available 24/7.

There’s no limit to the amount you can send with OFX and exchange rates are likely to include a small fee.

If you’re a business customer you can also open a Global Business Account with local bank details to reduce transaction fees. The account lets you hold, send, and receive payments from others in up to 30+ currencies. Standard accounts are fee-free but customers also have the option of opening a Custom account with custom pricing or a Full Suite account for £125 per month.

How to receive inheritance money from abroad with OFX

Receive payments through OFX to your bank account in the account’s designated currency. If you’re receiving money for your business you can also receive payments to the Global Business Account in 30+ currencies.

XE Money Transfer

Xe Money Transfer supports payments in many countries and currencies, with variable fees and exchange rates depending on where you’re sending to.

The Xe limits are set according to the country that the payment originates from, but it is generally fairly high. For example, from Canada you can send up to 600,000 CAD, from the US you can send up to 500,000 USD, from Europe you can send 375,000 EUR.

You can arrange your payments online or in the Xe app, for deposit to bank accounts and mobile money accounts.

How to receive inheritance money from abroad with XE Money Transfer

Receive payments through XE Money Transfer to your bank account in the account’s designated currency.

Currencyfair

Currencyfair has a flat transfer fee which is the equivalent of 3 euros – just over 4.50 CAD at the time of research. There’s also a small fee added to the exchange rate used to convert your payment before it is deposited in your account in Canada.

There’s no advertised Currencyfair limit – if you’re sending a very high value payment you may want to check the limits which apply to your specific account in advance to ensure your transfer can go through smoothly.

You can create your payment online or in the Currencyfair app.

How to receive inheritance money from abroad with Currencyfair

Receive payments through Currencyfair to your bank account in the account’s designated currency.

Inheritance tax in Canada

If the person you receive an inheritance from is not a Canadian citizen or resident, the CRA is not likely to impose estate tax on the inherited amount. In fact, Canada doesn’t have an inheritance tax, meaning you don’t have to report it as income or pay taxes on any money inherited. However, other taxes may still apply – including taxes in the country the deceased individual lived in, and Canada’s lack of inheritance tax doesn’t mean you’re immune from taxation. That’s because the CRA considers all assets to be part of someone's estate and directly taxes this estate before any inheritance is released to family and other beneficiaries.

You’ll need to get professional support with your tax filing to make sure you’re complying with the laws which apply in your specific case.

This guide is for information only – seek professional advice if you need support about taxes in Canada or abroad.

How much can you inherit without paying taxes in Canada?

Canada does not have an inheritance tax, so you don’t have to pay tax on money or assets you inherit, or report it as income to the CRA. That means there’s no limit to how much you can inherit tax-free in Canada.

However, other taxes may still apply depending on the situation. In Canada, a person’s estate is taxed before any assets are distributed to heirs. This is because the CRA treats all property as though it was sold at fair market value immediately before death. As a result, capital gains tax may apply to the estate on things like real estate, investments, or business assets.

In addition, if you inherit property located outside Canada, foreign tax rules may come into play. The estate or its executor may owe tax in the country where the deceased lived or held assets, which must usually be paid before the inheritance is transferred to Canadian beneficiaries.

While you personally won’t pay tax on an inheritance in Canada, it’s important to get professional advice if foreign tax laws or complex estates are involved.

What are Canadian tax implications on an inheritance received from overseas?

If you inherit money or assets from someone who lived outside Canada, you generally won’t be taxed by the CRA on what you receive. But that doesn’t mean there’s nothing to report or consider.

Here’s what to keep in mind:

• The inheritance may be subject to taxes in its home country, which can reduce the amount you ultimately receive.

• If you receive income from inherited assets (like rental income or dividends), you may be required to report that income to the CRA.

• If you inherit a property or investment outside Canada, you may have to report it under the CRA’s foreign property disclosure rules (Form T1135), if the total cost exceeds 100,000 CAD.

You’ll need to get professional advice from a tax accountant to check the implications of receiving an inheritance. The value of the inheritance, where it has come from and where you’re a resident can all make a difference to where and whether you need to pay tax.

How to avoid double taxation when receiving inheritance

Canada offers foreign tax credits to help avoid double taxation on income earned from foreign sources, including income generated by inherited assets.

If the inheritance itself is taxed abroad, for example, through estate or inheritance taxes, those taxes are not eligible for a Canadian foreign tax credit. However, if you later earn income from inherited assets, such as rental income, dividends, or capital gains, and pay foreign income tax on that income, you may be able to claim a foreign tax credit on your Canadian return to offset those taxes.

In many cases, once the foreign estate has paid all applicable taxes and the assets are transferred to you, Canada won’t tax the inheritance directly. But to stay compliant and avoid complications, it’s important to:

• Confirm that any required foreign taxes were properly paid

• Keep records showing the nature, value, and source of the inheritance

• Consult a Canadian tax advisor if you’re receiving large, high-value foreign assets

Selling inherited foreign property

If you have inherited a property overseas and need to sell it, you can do so subject to tax rules in the country the property is located in.

You may need to pay capital gains tax, for example, which could be owed in the country the property is in, as well as in Canada.

Once you have navigated the tax implications of selling your inherited property you can repatriate the funds.

Check out the following money transfer services as good ways to move money back to Canada from overseas:

What is the tax for selling inherited property overseas?

You won’t pay tax in Canada when you inherit property, even if it’s overseas. But if you sell that property later, capital gains tax may apply on any increase in value since the date you inherited it.

You might also owe tax in the country where the property is located. In that case, Canada may allow a foreign tax credit to reduce or avoid double taxation. A tax advisor can help you calculate the gain and file correctly in both countries.

What are the rules for receiving inheritance from abroad?

The way receiving an inheritance works can depend on the country the heir is resident in for tax purposes, as well as the country the individual died in. Each country has its own inheritance regulation, so legal processes and taxes may be different.

To receive inheritance from abroad, the heir will need to clarify the legislation to be applied based on the countries involved. They’ll then be able to pay any taxes owed and the remaining assets of the estate can be transferred to the heir.

Will I be taxed here in Canada if I receive money from abroad for inheritance?

In most cases, no tax is owed when you receive an inheritance from abroad. However, it’s very important to check the rules in your specific situation to comply with all relevant legislation. Also, what happens before the money reaches you can affect how much you receive, for example, if the estate is taxed in the deceased’s country. Once the funds are in Canada, taxation only becomes an issue if they start generating income, like interest from a savings account or returns from investments.

Do I need to inform the CRA if I inherit money from abroad?

Generally, there’s no requirement to report a straightforward cash inheritance to the CRA. But things change if the inheritance includes foreign assets like property, shares, or trusts. If their value crosses the 100,000 CAD threshold, the CRA expects you to disclose them using Form T1135.

Also, if your inherited assets earn any kind of income,  say, a rental property overseas or dividends from foreign shares, that income must be included in your Canadian tax return. In complex or high-value cases, hiring the help and expertise of a tax professional can help you stay compliant and avoid penalties.

How to deposit a large cash inheritance?

If you have received an inheritance in cash you may be considering bringing it to Canada in your luggage, or shipping it using a courier or other method. It’s important to note that bringing over 10,000 CAD into Canada requires you to report to border control on arrival in the country.

This rule applies if you’re carrying cash, or other cash-like methods like checks or travellers checks.

If you’re looking to transfer your inheritance with your bank, these guides might help:

• Wells Fargo large money transfers

• Chase large money transfers

• Bank of America large money transfers

Conclusion: Best ways to bring inheritance from overseas

If you’ve inherited money from overseas you’ll need to navigate the practical, legal and tax implications both in Canada and in the country the deceased individual lived in.

Tax rules – including thresholds and rates for Capital Gains Tax and Estate taxes – can vary widely from one country to another so you’ll need to take professional advice to make sure you comply with all relevant laws.

• You won’t pay tax in Canada on the inheritance itself, but may need to report foreign property or pay tax later if the assets generate income or are sold at a gain

• Foreign taxes may apply on an inheritance depending on where the deceased lived or held assets

• Bring the funds from your inheritance to Canada as cash, a check or an electronic transfer

• Electronic transfers are the most secure and convenient option and can be processed in CAD and other major currencies

• Check out providers like Wise and OFX for low cost international transfers to Canada, or consider a multi-currency account from a provider like Wise if you want to receive your money in a foreign currency

FAQs

Is inheritance from abroad taxable in Canada?

In most cases, inheritances received from abroad are not taxed in Canada. However, there may be tax obligations in the country where the deceased lived, especially if estate or capital gains taxes apply there. The rules can vary based on the inheritance’s value, the country involved, and other factors. Get professional advice to help you navigate the rules properly.

Do I need to pay taxes on inheritance from abroad?

You typically won’t owe taxes on an inheritance once it reaches Canada, but taxes or reporting requirements might apply in the country where the deceased individual lived in/or held assets. This will depend on the nature of the inheritance and where you live, among other factors. Professional advice is recommended to ensure you meet all legal requirements.

How long does it take for inheritance money to come through from overseas?

If you have inherited funds from overseas the amount of time taken to execute the deceased individual’s will can impact how quickly you receive your funds. Take local advice in the country the deceased individual lived in to understand how the process works there.