Leaving Canada for tax purposes triggers a "deemed disposition" (departure tax) on most non-registered, accrued-gain assets as if sold at fair market value. You must file a final tax return reporting income up to your departure date, while registered plans (RRSP, TFSA) are generally exempt. You must sever residential ties to stop being a Canadian resident.
After you leave Canada, as a non-resident, you pay Canadian income tax only on your Canadian source income. However, only certain types of Canadian source income should be reported on your return, while others are subject to non-resident withholding tax at source.
Introducing an exit tax of 35% on all household net worth over $10 million upon renouncing Canadian tax residency, effective July 1st, 2025.
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.
If you emigrate from Canada during the tax year, you must report any property holdings to the CRA if the fair market value of all the property you own is over $25,000 on the date you leave Canada.
There Is No “Six-Months-Per-Year Rule” for Canadians. Many Canadians mistakenly believe they may only spend six months each year in the United States. The truth: There is no U.S. rule limiting Canadians to six months total per year.
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 90% rule helps non-residents and recent immigrants claim full federal tax credits (like the Basic Personal Amount) if 90% or more of their net worldwide income for the relevant tax year is from Canadian sources; otherwise, credits are prorated (reduced) based on their Canadian residency period, ensuring fairness for those who weren't residents all year.
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.
You may keep your TFSA
If you become a non-resident, you are allowed to keep your existing TFSA. Any income you earn in your account, such as interest, dividends, or capital gains will not be taxed in Canada. However, income you earn through your TFSA may be taxed in your country of residence.
What to declare. Whether you are leaving or entering Canada, you must declare any currency (cash) or monetary instruments (i.e. cheques, money orders, bank drafts, etc.) valued at CAN$10,000 or more that you are carrying. This amount includes Canadian or foreign currency or a combination of both.
Financial considerations
As a Canadian expat living, working or traveling overseas, you will not have access to many government-funded healthcare services. Therefore, you need extra health care insurance to bridge the gap. A comprehensive global health plan can help you get access to these medical services.
For a $70,000 income in Canada (using 2025 rates), you'll pay roughly $13,000 to $20,000 in total taxes (federal, provincial, CPP, EI), depending on your province, resulting in a take-home pay around $50,000-$59,000, with federal tax around 14.5% or 20.5% depending on the portion, plus provincial tax and deductions like CPP and EI.
The five key mistakes to avoid in a TFSA are over-contributing (and re-depositing withdrawals in the same year), treating it like a basic savings account (missing out on investment growth), failing to track your room (relying solely on CRA data), improperly moving funds (withdrawing and redepositing instead of transferring), and investing in non-qualified assets or high-risk trades (like day trading or certain foreign stocks that incur withholding tax).
Who is eligible for this tax credit? To be eligible for the $7,500 Multigenerational Home Renovation Tax Credit in Canada, you usually need to meet the following criteria: You must be a homeowner in Canada. The resident of the renovated unit must be a family member who is a senior or an adult with a disability.
Most types of property are subject to departure tax, but there are important exemptions: Tax-Deferred Accounts: Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are exempt from departure tax, meaning you won't owe tax on these assets until you make withdrawals.
If you meet the 20-year residency requirement, the OAS benefit amount remains the same, no matter where you live. However, additional OAS benefits like the Guaranteed Income Supplement (GIS), and survivor allowance require you to reside in Canada.
Belize can be one of the cheapest places to retire in the world. The area around Ambergris Caye can be expensive, but the rest of the country is a bargain. Real estate and daily living prices here will enable you to enjoy the good life at a very affordable price.
There is no specific age when seniors stop traveling—it largely depends on individual health, mobility, and personal preference. Many seniors continue traveling well into their 80s or even 90s, especially with supportive travel accommodations.
The "28-year rule" in Canada refers to a past requirement under the Citizenship Act where second-generation Canadians (born abroad to Canadian parents who were themselves born abroad) automatically lost their citizenship on their 28th birthday unless they applied to retain it by demonstrating a substantial connection to Canada (like living in Canada for a year). This rule affected many "Lost Canadians," but recent legislation (like Bill C-3) introduced in 2024/2025 aims to eliminate this requirement and restore citizenship for many affected individuals, making citizenship by descent more permanent.
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.