Yes, you can keep a Canadian bank account while living abroad, but you must notify your financial institution of your non-resident status to update your tax documentation. While major banks generally allow this, they may apply a 25 % 2 5 % withholding tax on interest earned and restrict certain investment products, such as TFSAs.
U. S. persons maintain overseas financial accounts for a variety of legitimate reasons, including convenience and access. They must file Reports of Foreign Bank and Financial Accounts (FBAR) because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions.
Opening a bank account if you're not a Canadian citizen
You may be able to open a bank account with the proper identification in Canada even if: you're not a Canadian citizen. you live in another country.
To remain eligible for your Canadian provincial/territorial government health insurance, you cannot travel outside your province/territory of residence for a total of more than 7 months (212 days) within a year, or 6 months (183 days) if you live in Quebec, PEI or Nunavut. This includes travel within Canada.
Opening a Canadian bank account from outside of Canada
In order to open a bank account in Canada, you will be asked to provide proper identification. You don't need to wait until you are in the country to start either—you can open a chequing account online.
Because CPP is a "member-contributed plan" it will always be yours, regardless of where you live in the world. If you paid in at least 1 CPP contribution, you are entitled to a benefit. OAS, on the other hand, comes out of the general tax revenues.
Canada's 183-day rule is a key factor in determining tax residency: if you stay in Canada for 183 days or more in a calendar year, you're generally considered a resident for tax purposes for that entire year (a "deemed resident"), even if you don't have strong ties, subjecting your worldwide income to Canadian tax. However, this rule works alongside Canada's complex residency tests and tax treaties, meaning you might become a resident sooner with significant ties (like family or property) or avoid it if a treaty designates you a resident of another country.
In actual fact, you can be absent from Canada as long as you want. The Canadian government recognizes that citizens may travel extensively, work or study abroad. You will always maintain your Canadian citizenship. What absentia may affect is your Canadian health care coverage and income tax.
Therefore, provided you have severed primary residential ties to Canada, it is possible to maintain certain secondary ties to Canada such as maintaining a bank account, investment account or credit card. The date you become a resident of the new country you are immigrating to.
Who Must File the FBAR? A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.
Open a CAD account online from the US with Airwallex. Your account will come with local CAD bank and branch codes and a dedicated account number. Use your Canadian dollar account to receive, manage, and send CAD with no hidden fees.
The IRS can generally levy any account in your name for unpaid taxes, but some funds are protected, like certain disability payments or Social Security (though some can be taken), and funds in an irrevocable trust or accounts not directly in your name (like some business or trust accounts) are harder to seize. Certain income sources are never taxed, like some veterans' benefits, child support, and welfare, but these aren't usually held in traditional bank accounts. The key is that the IRS targets your assets for your tax debt, so protecting funds by legally changing ownership or ensuring they are designated as non-taxable income is how they become untouchable by levy.
Does CRA audit your bank account? Yes, the CRA could resort to that. We already mentioned that bank statements are important paperwork during an audit process. The CRA typically ensures that your income deposits in your bank match your reported income.
It's important that you tell the CRA the date you leave Canada. Generally, as a non-resident, you are not eligible to receive: the GST/HST credit. the Canada child benefit (CCB) (including those payments from certain related provincial or territorial programs)
As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive. Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.
Leaving or returning to Canada
Your Old Age Security (and Guaranteed Income Supplement) may stop if you're away for more than 6 months and don't qualify for receiving your payments while outside Canada.
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As a non-resident of Canada, you may be entitled to apply for Canada Pension Plan (CPP) payments and Old Age Security Pension (OAS) payments.
Top banks like RBC, TD, CIBC, BMO, Scotiabank, and HSBC provide USD accounts, IRS compliance, and low fees for expats and newcomers. This guide covers the best banks for US citizens in Canada, tax rules, and tips to save cash. SAL Accounting provides expert banking and tax support.
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