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Before making a major financial decision you
should consult a qualified professional.
If a resident of Canada moves to another country, and
severs residential ties with Canada, he/she is deemed to be
an emigrant of Canada for tax purposes. When this
happens, the person is deemed to have disposed of almost all
their property and re-acquired it at fair market value.
Tax will be payable on any capital gains arising from the
Emigrants are not eligible for:
Canada Child Tax Benefit (CCTB)
Child Disability Benefit (CDB)
Universal Child Care Benefit (UCCB)
It is important that you report your date of emigration to
Canada Revenue Agency (CRA) as soon as possible.
If you are participating in the Home Buyers' Plan (HBP) or
Lifelong Learning Plan (LLP), you have to pay the balance of the funds you
withdrew by whichever date is earlier:
60 days after you become a non-resident; or
the date you file your tax return for the year.
If you continue to receive Canadian-source income after you
emigrate, Part XIII tax of 25% will be withheld from certain types of income. The
most common types of income subject to withholding tax are:
non-arm's length interest
Old Age Security (OAS) pension
Canada Pension Plan (CPP) or Québec Pension Plan (QPP)
registered retirement savings plan (RRSP) payments
registered retirement income fund (RRIF) payments
The tax treaty between Canada and your new country of
residence may reduce the rate of non-resident withholding tax on some types of
For more detailed information, see the following information
on the CRA web site: