Canadian Tax - Top Tips for Expatriation

There are a lot of reasons for Canadian citizens to decide to leave Canada, such as a great job or contract opportunity, a different place to raise a family or to retire, seeking a better climate or culture, a desire for adventure and so on.

There are a lot of reasons for Canadian citizens to decide to leave Canada, such as a great job or contract opportunity, a different place to raise a family or to retire, seeking a better climate or culture, a desire for adventure and so on.

Before you Leave

Whatever your reason might be to leave Canada, there are some tax considerations you should be aware of. The biggest personal and tax question will be whether you are leaving Canada short term or permanently. 

Making sure this question is answered fully is not as easy as you might think. It will require a checklist of items to be completed.

Discuss your Tax & Financial Situation With a Tax Professional

Prior to leaving Canada, meet with a tax professional that specializes in Canadian expatriates, to understand what’s required in order to sever your residency status and file the required departure tax return or full year resident tax return.

You will be taxed very differently based on whether you retain Canadian tax residency or establish tax residency in your new country.

Consider your Real Estate

Owning real estate can be an indicator that you may be planning to return to Canada. If this is not the case, you may want to consider selling your property or renting it to a third party.

If you retain the property for rental, a long term rental agreement should be in place and you should ensure that you are meeting the non-resident rental reporting and withholding requirements.

Preparing to Leave

As well as real estate and tax considerations, you will need to be willing to cancel your right to healthcare in the province you reside in before departing. You will also need to:

  • Cancel your GST/HST and Child Tax Benefit
  • Consider closing your bank accounts
  • Cancel your driver’s license and insurances
  • Ensure that the appropriate non-resident withholding tax can be remitted to the CRA
  • Understand your requirements to pay departure taxes if you become a non-resident
  • Cancel memberships, subscriptions and notify any clubs

When planning for visits back to Canada, the length and frequency of these visits need to support your new residency status.

How Can We Help?

From corporate tax return preparation and compliance to corporate reorganizations, structure planning and transactional tax consulting, Canadian GEANetwork.com Member, Trowbridge offer a complete solution to ensure your tax objectives are met.

Changes to tax legislation occur frequently and you can feel safe in knowing that we keep up to date on the latest tax changes that affect your business. Contact us for more information or advice.

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