Tax Implications of Leaving Canada Permanently

Are you thinking about leaving Canada but feel overwhelmed by the tax implications? I've got you covered!
In my latest video, I dive deep into the complexities Canadians face when moving abroad. From understanding departure taxes to handling rental income while you're away, I share all you need to know to navigate these financial challenges with confidence.
Whether it's your first time considering a move or you're already living abroad, this guide is packed with vital information to help you manage your taxes efficiently.
➡️Register for my upcoming webinar on February 29th where we will be discussing How to Create $10K Monthly Cash Flow in U.S. Real Estate Investing for Canadians:
www.therealestateaccountants....
Key Moments In This Episode
========================
00:00 Introduction to Tax Implications
02:25 What Determines Tax Residency?
07:01 Understanding Departure Tax
09:21 Exceptions to the Rule
14:13 Managing Rental Income from Abroad
16:44 Filing Obligations for Non-Residents
21:02 Corporate Property Ownership Abroad
23:19 Effects on RSP and TFSA
27:47 Global Tax Implications to Consider
If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.
Don’t forget to subscribe to my channel for more videos on Canadian real estate and tax-saving strategies so you don’t miss a thing!
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Please make sure to speak to a professional that knows your personal situation before making a decision.
If you need to talk to someone on my team, email us at [e-mail].
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DISCLAIMER:
Real estate Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your legal and tax advisors to ensure you get the best personalized advice.
The information contained in this video is for general information purposes only.
The information is provided by ECRB Consulting Inc., RealEstateTaxTips.ca, Cherry Chan Professional Corporation and Cherry Chan.
While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the article or the information, products, services, or related graphics contained on the presentation for any purpose. Any reliance on such information is, therefore, strictly at your own risk.
In no event will we be liable for any loss or damage, including, without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of or connected with the use of this information.
#CherryChan #RealEstateTaxTips #RealEstateInvesting #RealEstateStrategies #CanadianInvestors #USRealEstate #CashFlow #RealEstateCanada #ExpatsCanada #TaxPlanning

[@RealEstateTaxTips]

Sign up for my upcoming webinar with the SHARE team on Feb 29th, 2024 where we will be discussing How to Create $10K Monthly Cash Flow in U.S. Real Estate Investing for Canadians: www.therealestateaccountants.ca/share-yto

[@Tugela60]

Given how much igorance is being expressed about tax in the replies to your video, it is no wonder that so many people get scammed 😂 Not sure that your attempt to educate them had much effect, since half of them did not seem to understand what you were talking about.

[@ecventura]

That’s an amazing video. So, besides taking almost 50% of your monthly income during your working years… when is time to retire and you realize you can’t survive in Canada then Canada still wants 1/4 of all you have… crazy greedy.

[@ktp.]

Yes this is not a place where you can become wealthy or even begin to build wealth. It's repulsive.

[@sammann3577]

@@ktp. Extreme Socialisms

[@ac-mu2nw]

You obviously don't know how to handle your finances.

[@saucyjack8548]

Better just leave now then

[@bjtowns9554]

Plus 25% of ur oas and cpp witholding tax even though u dont access any services of Canadian resident seniors who pay 15%.

[@starchild890]

I'll make sure I have nothing left here when I move out for forever. This country is sucking my blood.

[@RealEstateTaxTips]

I'm sorry to hear that

[@starchild890]

@@RealEstateTaxTips Don't be. I'll be very happy to not live here for my older days. There is no life here, regardless of you age and it is not about the money.

[@RealEstateTaxTips]

@@starchild890 all the best!

[@ktp.]

I've now interpreted "you'll own nothing and be happy" in a whole other, more realistic way!!

[@roynaidu2327]

Chinada is a vampire, exactly how I see this country

[@SuccessForever1234]

Do not FEAR what they tell you, continue to live your life to the fullest and not look back. Your life is yours. They only look for their financial gains

[@MaxPowersCFB]

Don not fear what they tell you but believe them when they tell it to you and if you go through life not looking back then something from your back is going to come up and stab you in the back just when you think you are almost there.

[@SupraSav]

​​@@MaxPowersCFBthe message is more about living on your own terms and not giving in to fear propaganda and "what ifs"

[@panijefer]

If you like to save money, don't sell/dispose of everything in the last year (nonresident year). Start selling/disposing of assets a year or two before departing.

[@b-rare]

Plan the big escape that’s the only way to do it

[@jonmacist]

Yeah billionaire Grant Cardone drains all his bank accounts close to 0 eveytime and looks on paper a broke homeless guy every dollar is invested in commodaites, stock Market or properties, so he likley keeps loose cash around un traced for day to day expenses.

[@MaxPowersCFB]

@@b-rare For real, it is like Alcatraz up in this bitch!

[@Tugela60]

You will still be paying tax on the capital gains. The departure tax only applies to the capital gain of your asset, not the entire value.

[@MaxPowersCFB]

@@Tugela60 This is why rich people always move their money abroad because when it is time to go it is time to go. Move the money to a country with lower taxes or no taxes and then you buy all your assets their so one place would be Monaco per say. They don't have income tax and I am sure the capital gains tax there would be minimal if they had one so you buy all your assets there in the other country. All after tax income that is discretionary is moved there immediately after being earned. When you leave you just leave. Don't even bother trying to own anything here, just rent the house and lease the car. Even better if you have parents just stay with them and devote even more money to moving abroad. The other way would be to open a trust and own nothing legally and then you just become a beneficiary of the assets you assign to the trust to own. House, stocks, bonds, rental properties give it all to the trust. If you legally own nothing you have nothing to tax.

[@cherifbar]

Let’s make it easy, what you own give it to the government and leave.

[@jonmacist]

And your OK with that and not mad another sheeple.

[@stormforge68]

@@jonmacistI’m pretty sure @cherifbar was being facetious. It’s difficult to read “tone” on the internet.

[@FloodPower]

Ok groomer, keeping my money enjoy the never ending downward spiral

[@jonmacist]

@@stormforge68 well lets hope so.

[@chrisspezowka8417]

@@jonmacistobvious sarcasm to me

[@sdandrea5245]

The tax burden in Canada is HUGE. Take a detailed look at ALL the taxes we pay in Canada (at ALL levels). We never have a party running on a platform to REDUCE taxes by increasing efficiencies and reducing costs. Instead, it's all about government spending more, then taxing more. So you work to get taxed on earned income, then more tax due when these savings are invested. Canada = Land of Taxation. Best country on Earth to pay taxes.

[@RealEstateTaxTips]

Absolutely. None of the political parties are taking ownership on improving efficiencies. Sad.

[@user-rc1nv1je2y]

This is without a doubt the best financial /tax KZbin video I have seen in many years.

[@RealEstateTaxTips]

thank you and glad it's helpful

[@GEM531]

I use to think so and I do think so but not when it become personal and they are making decisions as if they are in your bedrooms. Will explain later.

[@rudihofer7212]

i own nothing in canada , i put all my possession into a shipping container and sent it ,,,elsewhere , no income but pensions .Also recieved my tax forms from revenue canada .

[@CanadaMath]

In 2004 I wrote a somewhat famous article called 'Top 8 reasons not to immigrate to Canada'. In short, the Canadian authorities tried to destroy my life. They made it so that I could not be employable in Canada. So I moved to the U.S. in 2005 and then some years later I moved permanently to the Philippines. I am happy that so many years later videos like yours are saying essentially the same things that I did. I was ahead of my time. I will never go back to Canada. Not to live, not to visit, not even a connecting flight. Too cold, too expensive, taxes are astronomical, no culture, no freedom, no jobs, no opportunities, only modern slavery, worst healthcare system, unbearable political correctness, crime infested/drug infested, xenophobic people, too depressing. It has become a North Korea style dictatorship in the western world. There are many reasons why Canada has fallen apart. But the number one reason is ‘multiculturalism’. My friends, multiculturalism simply does not work. Different cultures do not come together and mix, different cultures come together and clash. The world is divided into different countries for a reason: because people hate each other and only want to be with their own kind. The number two reason for Canada’s demise is ‘socialism’. In this modern era of aging populations, it is mathematically impossible for socialism to continue. The government does not have the money to take care of old people and provide healthcare, pensions, welfare, unemployment benefits, disability benefits and the numerous other programs, even with the astronomical taxation that burdens hard working Canucks. Well Canada, you had a good run. Time for Canucks to move to an emerging country. We welcome you here in Southeast Asia. Multiculturalism destroys the fabric and identity of a country. Socialism bankrupts a country.

[@user-sn1iw3up4v]

Hahaha, we don't need you in Canada!

[@b-rare]

Wow : someone who speaks the same language as I do. This comment should be printed off and framed. I need to leave Canada I need help this country is so far done . Everything you’ve mentioned is literal gospel

[@RobJablind-nc6is]

Well I ask lots of bluk bluckers ( Filipinos) why they left blucker land ( blucking and cluck clucking is how Tagalog sounds) and they all say for a better life……so…who do I believe?!?

[@TheRawi]

This is very true. Canada is done for.

[@harjotdod1262]

So, Are you native Filipino? Since you are so against multiculturalism!!

[@Cd3]

My word. Is this why they implemented the MAID program?

[@Tugela60]

So many people posting here seem pretty clueless about tax. The departure tax only applies to capital gains and other monies that have deferred tax, such as RRSPs. It is tax you would have to pay anyway, and since you are closing off your accounts on departure, you pay it then. Every country does this, not just Canada.

[@RealEstateTaxTips]

Some countries do not have capital gain tax. RRSP can be deferred - no liquidation required at time of departure.

[@georgen26]

How to add Zelensky and Ukraine as a dependant on tax returns? Asking for every Canadian that knows whats up..

[@roynaidu2327]

😂😂Fuck im gonna try that! fuck the CRA.

[@Johnnynomadic]

😂

[@Tugela60]

So you are not asking yourself then?

[@hagenaarsfamily9794]

I am sorry but there isn’t anything here that could make me stay!

[@cherifbar]

They should rename the CRA the MIFA.

[@jshuyaclips1616]

Canadian tax mafia LMAO

[@anchorage-regenerative]

Thank you so much! This shed a lot of light on the matters I've been considering!

[@RealEstateTaxTips]

Glad you found it helpful!

[@user-tg3gq2df5g]

Thank you for this detailed video

[@santasantinagatta]

Thank you for this valuable information-God bless you.

[@timkuehn8888]

Very well done - thanks for posting this!

[@RealEstateTaxTips]

Thank you !

[@2GringosOnTheGulf]

We left Canada for Mexico and it was the best decision we ever made. ♥️ Great video my friend thanks for sharing. 😊✌🏼

[@RealEstateTaxTips]

Thanks for watching. Glad you're enjoying Mexico.

[@kornNpunk]

So are you Mexican citizens now?

[@2GringosOnTheGulf]

@@kornNpunk No we only ever be temporary residents.

[@Checovloggs]

@@RealEstateTaxTipsbelieve Mexico is doing so good with the new system

[@el_killorcure]

​@@ChecovloggsHave you kept track of the exchange rate? Before Trudeau it was 15 pesos per loonie. Right now it's 12.2 pesos per loonie...

[@astseesit]

This is EXACTLY the information I have veen looking for. Thank you. Love this post.

[@RealEstateTaxTips]

Glad it was helpful!

[@jacobrocks7]

I would miss the HST, carbon tax, high income tax…

[@RealEstateTaxTips]

HST is also applicable on carbon tax. Tax on tax.

[@jidebalogun5302]

Lol.. that's awful

[@highspeeddream3980]

as accountants, I recommend that you guys should voice out some unfair tax law in Canada, such as foreign assets

[@carlostdw]

Thank you, this is very helpful.

[@DrewNelles]

Great video Cherry. Lots of useful tips, and information. Quick question however that you mentioned but didn't go into detail on: Foreign owned properties. If you buy your new home before you leave (so you have a place to move to) how can anyone figure out the deemed disposition price? In North America there are real estate databases, but in SE Asia, Latin America and elsewhere there's no such thing, and I doubt even I could figure out what a change of price is with any confidence without actually selling it, which of course wouldn't make sense. So how can the CRA establish Capital Gains amount? Any insight you can share on what CRA's methods are?

[@CpRocksters2000]

Thanks for preparing Very informative videos. I was just wondering if you have any video on tax implications for receiving inheritance from abroad or with in Canada? If not , can you prepare on this topic too ? Thanks Andy

[@PrinterGoBrrrr]

ty for the info! Very useful.

[@RealEstateTaxTips]

Glad it was helpful!

[@be-i-ng]

do you have a video advising on Canadians retiring abroad while maintaining Canadian ties to maintain OAS and other pension/benefits ?

[@azfanjaffeer]

One of the most factual, specific and helpful videos on this topic. Nicely done!

[@RealEstateTaxTips]

Much appreciated!

[@mitchieyy]

When you own many homes and have capital it’s such pain to deal with this 😢 when we moved away from Canada to California we need to pay over 100k departure tax and get taxed again in California. I was thinking about moving our rental into a corporation when I was in Canada. Glad I didn’t do it to create more trouble when leaving

[@RealEstateTaxTips]

Yes - moving to States definitely doesn't help (not from the tax perspective). Some countries only tax you on the income you earn in that country. Not the states.

[@cellphone7223]

You left Canada to move to California!!?? That's hilarious.

[@Tugela60]

If where ever you are moving to has a tax treaty with Canada, you will effectively pay the greater of the tax due for the two jurisdictions.

[@mitchieyy]

@@Tugela60 I wanted to move to California which unfortunately the date doesn’t not have treaty with Canada

[@Tugela60]

@mitchieyy The US does. State taxes are separate, similar to provincial taxes in Canada. The difference between the two countries is that in Canada Revenue Canada collects the tax on behalf of the province, whereas in the US the IIRS only collects the federal portion. That can create complications of course, but at a minimum whatever tax you pay in Canada can be deducted from your federal return in the US. So, you might end up paying more state tax and less federal tax than you otherwise might, which should mostly balance out.

[@michaelg4232]

I've been trying to find this accurate info for a while. Thank you

[@RealEstateTaxTips]

Glad it was helpful!

[@michaelg4232]

@RealEstateTaxTips so if I would cut my ties with canada and become a resident in the philippines. Interest earned from a Canadian investment taxable in canada still right? 25% withholding and then taxed at regular amount at end of year??

[@krishnamodi6355]

Great topic! Thanks for making a video on this. QQ - Say if someone becomes a US tax resident (non canadian resident), can the 25% withholding from RRSP on withdrawal with adjusting with the income tax in the US?

[@theresasmith1]

Very well done video. If anyone rents in Canada make sure to ask if owner is a Canadian. Many tenants were stuck with taxes for non resident which left Canada on top of rent. A tenant must send 25% to CRA monthly if landlord didn't do so. I heard many tenants stuck with over $40,000 of taxes owed to CRA on top of rent. I feel bad for these tenants.

[@RealEstateTaxTips]

Oh wow, I didn't realize that could be a problem.

[@robertk5441]

This is an excellent video. I am glad you went into detailing assets like privately owned corporations. My conclusion is that for my particular situation, it would be financial suicide to try leaving Canada. I am stuck. But, it's not necessarily so bad. Grass is hardly ever greener somewhere else. There are always pros and cons. There's no perfect country. Instead of leaving, maybe we should just try fixing the problem here. Vote properly.

[@jero_me]

Lol

[@kubismatik2]

Canada is so damaged it would take decades of extremely rational governance to fix it. Vote for better policies is important but it won’t fix Canada in our lifetimes.

[@b-rare]

This is true and I think the same thing . All countries have pros and cons. But Canada has way too many cons my friend. The biggest one being taxes and liberal government. It keeps on getting worse. If we all had a chance to pick what country we live in (most of us are here cause we were born here) no one would ever pick Canada you’d be stupid to do so. There’s so many better options out there. There’s nothing attractive about Canada. Nothing. Not one thing that says “this is why I chose Canada”. Nothing. The taxes we pay aren’t worth it. The juice isn’t worth the squeeze. I can’t see how Canada is going to succeed. I’d never invest in Canadian stocks I think the economy is going to shit. We need a total government revamp. We need a trump. We need a man who’s going to budget and fight for the countries freedom. Liberals just throw money around to losers beggars and they bring in unskilled people who abuse the system. Just other day i saw Indian student on TikTok bragging about how he takes advantage of the food banks for free food. It’s a clown town here in Canada. I don’t think any new leader could ever mop up the mistakes made over the last 8 years of Trudumb. The sad part is I work so hard to get ahead and the government keeps stealing your freedoms and money. All for the losers to take a free government cheque each month. Too liberal doesn’t work.

[@robertk5441]

@b-rare I gave you thumb up on your comment. It's impossible to disagree. However. I came to this country 40 years ago from communist country. It was great to be here. Now ,Canada has become communist country, and my country of birth is more free and doing well. Conclusion. You move somewhere else, and you never know what's going to happen there in the next 10 years. But I know what you are saying. It's a sad reality here. I loved my adopted country. I am Canadian. I still love Canada. But I love 1985 Canada. I love 2024 Canada, much less. If you know what I mean. I made good money here, but it's painful to watch liberals destroying this country.

[@ktp.]

The longer you do stay, the more you'll have to give up so not worth it. Look at the condition of senior citizens?? No thanks!

[@Oksana1966]

Great job explaining this topic!

[@RealEstateTaxTips]

Glad you liked it!

[@McLenStarison]

What about a deemed non-resident who is working in a foreign country like the UK?

[@sakiracadman5673]

Just sell everything and move it off shore, then convert it to gold, then move the gold to a numbered account. Then give up citizenship.

[@msisoo]

Then, where’s is your new home?

[@sakiracadman5673]

@msisoo plenty of countries that can have citizenship bought. Antigua for example

[@marylmpaulson1855]

Make sure you have a citizenship of another country so that they can deport you to that country because you will need a country to go to. Very important. But if you have dual citizenship, then it will not be a problem.Hope you will be happy to say good bye to Canada for good.

[@marksmith7896]

Great info. Thank you.

[@RealEstateTaxTips]

Glad it was helpful!

[@b.b.finsclara3589]

EEEEXCELLENT You are very THROUGHOUT AND detailed!!! BLESS YOU!!!

[@RealEstateTaxTips]

Thank you

[@primeartifacts6467]

you don’t have to give tax to CRA if you are paying tax in another country. The tax can’t be charged twice specially when both countries share tax data. In US it’s different. You have to pay US taxes wherever you are working in the world.

[@blaineturnacliff7907]

You should probably mention that persons with RE should get an official appraisal done on the RE price at the time of leaving canada. This will make tax matters more smoothly when determining canadian capital gains (if any), if you decide to sell the RE down the road.

[@oniva01]

FOUND THIS VERY INTERESTING

[@bpacheco6]

I learned alot thank you

[@RealEstateTaxTips]

Glad it was helpful

[@kevinthailand2567]

Wow very informative. Thanks. Quick question: Canadian citizen with ties to Canada (parent,banking,investments and more) and filing Canadian taxes annually but wishing to live abroad ... you maintain your Canadian tax status,file annually on investment income but otherwise free to live abroad?

[@RealEstateTaxTips]

From tax perspective... I don't see a problem.

[@Zillionaire19]

@@plexiglasscorn 😆

[@kellyinPH]

Regarding the T1243 form, what do you fill out if all I have are excluded items? Just registered accounts. Do I just fill in my info on the top and leave bottom portion empty ?

[@sean45642]

how long have you stayed? in whole (Canadians out of convenience)

[@db4367]

Great video, many thanks. No surprises or cause for alarm for huge tax bill when you move elsewhere. All the CRA exit rules make logical sense when compared to tax laws elsewhere.

[@RealEstateTaxTips]

It's all perspective. Canada's law isn't the worst, but definitely far from being the best either.

[@Tugela60]

Pretty much all other countries treat a departure from their jurisdiction the same way, so I am not sure why so many people have their knickers in a knot. I think they seem to believe that they can get out of paying tax that otherwise would be due by leaving the country, but does not work that way, not in Canada or anywhere else.

[@happydinks]

Great video Cherry, so what are the tax implications or how much tax will be needed to pay if someone works outside of Canada but still maintains everything which is opposite of declaring non-residency?

[@RealEstateTaxTips]

Chances are you will have to pay tax where you are earning your income from, and then report that income on your Canadian return. It's best to schedule a consultation and discuss your situation in detail.

[@Tugela60]

Depends on whether that country has a tax treaty or not. Usually you deduct the tax paid in the foreign jurisiction and pay the balance of what otherwise would be due on your Canadian filing.

[@willweiss3205]

For the RRSP it is NOT 25% withholding tax BTW. It is : 10% up to $5000, 20% up to $15000 and 30% above 15000 per year.

[@RealEstateTaxTips]

www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/making-withdrawals/tax-rates-on-withdrawals.html For non residents - withholding rate is 25%

[@Detroit_Paul]

informative video, will share with a friend who'`s planning to leave Canada. Question for you: I left Canada for Ivory coast December 2023, am retired, my pensions (employer&govt) are deposited in my TD account, also have a RRSP at TD. What are my tax obligations towards Canada ? thank you

[@Tugela60]

If you are not a tax resident of Canada, none, outside of any statutory withholding amounts that are associated with some revenue streams. If the country you are living in has a tax treaty with Canada, that amount will be a deduction on any tax due in your new country.

[@alexlechef2]

Thank you, even if never plan on leaving Canada this is really interesting

[@RealEstateTaxTips]

When I made this video, I had never considered leaving Canada either. The recent changes of government policies force entrepreneurs to reconsider.

[@Tugela60]

It is basically the same situation taxwise as when you die and your estate is wound up.

[@RealEstateTaxTips]

@@Tugela60 Somewhat similar but not totally. If you own real estate in your personal name and become non resident, you can continue to defer the gain until you sell the property. If you pass away though, capital gain is triggered based on fair market value at the time of death, no deferral allowed.

[@ericmckay3047]

Great video. If I were to live full-time in Panama, could I still make contributions based on my existing contribution room? Or would I have to maintain Canadian residence?

[@Tugela60]

If you are still a tax resident of Canada, then probably. But if you are not, then no.

[@tomthetank1]

Would LOVE to hear more outsider commentary on Can Politics

[@RealEstateTaxTips]

IMHO, I haven't seen a perfect system around the world. I haven't studied enough about Singapore or Switzerland's system, but US, Canada and China - they all have their own problems.

[@anchorage-regenerative]

Just to make sure I understand you correctly: if I still hold non-registered mutual fund investments, RRSP, TFSA and draw OAS and CPP, and have no foreign source income, BUT I sell my primary residence well before I leave the country, can I still remain a Canadian tax resident even though I don't have a house here for me to return to?

[@y.v.g.b.4306]

That's a good question, I hope she covers this off.

[@db4367]

I would also like to know the answer to this question

[@pharmeden]

Do you know how real estate presale contracts is considered in non tax resident status?

[@fkturdo]

Dont worry about implications... get marching.

[@larbizard]

Great video ! Thank you. Do you provide canadian tax advising services ?

[@RealEstateTaxTips]

Hi yes we do, please reach out to my office at realestatetaxtips.ca/contact-us/ and my team can share the next steps. Thanks

[@larbizard]

Thank you ! I just submitted a contact form.

[@alexjames6747]

Canadian tax system is soooooooooooooo complicated! Like no other country in the world.

[@Cometocanadabut]

It has to be this way so majority of people won’t understand it. This way CRA can do whatever they want and the gov can brainwash people and pretend they support them but the truth is it’s it’s nothing compared to the tax they steal from others to feed the other people who came to Canada and not willing to work or contribute to the economy

[@RealEstateTaxTips]

The US one is also complicated. Most developed countries are pretty bad.

[@jairlopes4679]

Try Brazil and Portugal. Canada is nothing compare to those countries

[@chinnaram1221]

Very true many more are packed now to leave.

[@RealEstateTaxTips]

Should have seen the number of people who watched this video after the capital gain increase annoucement

[@rockev]

Great video! What if you own a rental property with a canadian resident ?

[@thelocustemperor]

If you own shares that you purchased in Canada and you pay the tax on the difference in value via the date you leave the country providing it's a positive amount, when you finally decide to sell the shares do you still have to pay the tax on your total earnings despite the fact you've already left the country and no longer are a tax resident. Sorry if that's not worded very well.

[@RealEstateTaxTips]

If shares are still held in your Canadian account - you'll have to pay the tax on any incremental gain from the FMV of the date of departure

[@keysersoze4388]

What if you liquidate everything you own before deciding to become a non tax resident of Canada. Do you still need to pay a departure tax on the cash you're taking out?

[@Tugela60]

As long as you have paid all the tax due on your previous transactions, no. The departure tax is essentially the same as the taxes due on winding up an estate after someone dies. All assets are deemed disposed of, meaning any tax due on capital gains based on fair market value or closing down an account with deferred tax, such as an RRSP, are due immediately.

[@el_killorcure]

I didn't see the implications of keeping a checking account and credit card. Are those alone enough to make you tax resident? Same question regarding non-registered accounts...

[@Curious859]

Hi. I just started your video but in the list of what ties one to Canada, I believe you forgot to mention any CPP income.

[@RealEstateTaxTips]

I've only mentioned the primary ties, not the secondary one. CPP Income is one of the secondary one

[@blackgrandpa7652]

Hello cherry I'm in Brampton ontario Canada and a new,subscriber

[@RealEstateTaxTips]

thanks for subscribing!

[@gkschick6804]

Thanks for this. Even though I have no plans to leave Canada, I've always wondered how certain assets like RRSPs and TFSAs were dealt with by those who do. One item not covered, however, is how CPP and OAS payments are dealt with should one declare oneself a non resident? Does it make any difference if one is already receiving them and then decide to leave Canada, vs someone leaving Canada at 59 and hoping to get them at say age 65? Thank you!

[@RealEstateTaxTips]

You can still receive CPP and OAS as a Non-Resident. I would recommend you schedule an appointment with my team to review your scenario to ensure you have the correct information relevant to you in order to assist you in your decision.

[@gkschick6804]

@@RealEstateTaxTips Thanks for your response. As I mentioned, I have no plans to leave Canada. Was simply curious how CPP and OAS would be affected. Congrats on your very informative channel.

[@pabawathieperera9118]

Please do another video about being a non tax resident .. When I own a rental property, would I convert my citizen ship before selling , during selling, or after selling, how long will it take to convert, what are all pay backs ext…..

[@RealEstateTaxTips]

At the beginning of this video, I already explained the difference between Canadian citizenship vs Canadian tax residency - two different things.

[@jk-zm2fs]

Great video with lots of valuable information. Could you expand on a Canadian becoming a non-resident tax payer continuing to own public company shares in a Canadian cash trading account? Is the dividend tax credit for Canadian companies only for resident tax payers? Can a non-resident continue to contribute to a TFSA, earning income and capital gains in the TFSA, and then some years later, withdraw everything without paying Canadian taxes?

[@Tugela60]

Where you live is not important, what counts is where you have tax residency. Obviously if you have tax residency somewhere else you can't claim any benefits or programs that you might have access to as a Canadian taxpayer.

[@Whatisthisstupidfinghandle]

27:55 the other thing you lose is really bad. You lose the Qualified Small Business Share deduction for selling a business if you are a non resident. Best to sell the business while you are a resident. Also if there are earn out payments you need to be a resident to claim them as capital gains instead of ordinary income. Many sales have multi year earnout structures so you need to plan years in advance

[@somneonfs]

I think you can contribute to your rrsp (given you have room) after departure as long as the source of income is Canadian. Can you confirm this?

[@Chap17]

No investment in TFSA or RRSP when u leave canada🎉

[@freeandhappy]

please answer this if you can. We left canada 3 years ago. sold our house and business. we have money invested in canada and a canadian bank account. we also have a daughter and ties and we file annual income tax . Do we have to pay departure tax?

[@mitshyetienne9255]

Since when have we had an exit tax in Canada? Is this since the pandemic, when people started leaving in droves? We all need to write tour mp's to get this tax removed. It doesn't make sense.

[@ib9511]

Since 2015

[@mitshyetienne9255]

@@ib9511 Thanks! I wonder if other countries have this tax.

[@joejoe485]

Great video

[@RealEstateTaxTips]

Thanks!

[@morvk2008]

What happens to the unused RRSP contribution room when you leave? Let's say you didn't have enough money to contribute to max out RRSP by the year you leave. Also: thanks so very much for this video!!!!

[@RealEstateTaxTips]

You can continue to contribute until the RRSP contribution room is depleted.

[@snowwalker9999]

@@RealEstateTaxTipsCan you still contribute if you are no longer a resident of Canada but you are a Canadian citizen?

[@AsiaPacificTV]

any downsides for electing to remit 25% of net rental income rather than gross?

[@RealEstateTaxTips]

Downside is that you do have compliance work to do

[@user-rc1nv1je2y]

Can you use LCGE to offset the deemed disposition gain on private shares (assuming you’re otherwise eligible for LCGE)?

[@RealEstateTaxTips]

Ask my single mom with 4 children tenant if I'm providing housing. Ask my veteran family of three (mom has MS and dad has disability) tenant if I'm providing housing.

[@user-rc1nv1je2y]

@@RealEstateTaxTipsnot sure what you mean.

[@soucaco]

What about the opposite scenario? I have a fully remote job in Canada, and wanted to go back to Brazil for an extended period of time. Can I live outside of Canada for years and keep my job while paying Canadian income tax, contributing to my rrsp/tfsa, etc, as if I never left?

[@RealEstateTaxTips]

Your scenario requires a bit more information and you would really need to have a Residency Determination completed to determine if your are a Non-Resident or a Deemed Resident, as both have totally different reporting obligations. In order to better explain this to you I would advise you to schedule a meeting with my team.

[@zackeryzackery9381]

Do I need to pay departure tax if I am going to live in Japan for two to three years, then return to Canada?

[@cvxcfv]

No

[@davidbruner3779]

Hi. Is "residence " defined in the Income tax Act?

[@skyscan5225]

How do they track your movements in and out of Canada? Most countries check and stamp your passport upon exit. Canada does not. They only check when you enter.

[@pabawathieperera9118]

When I become a non tax resident , do I have to pay back the tax refund I ve got sometime ago ? ( I own a 3 unit rental property that I live there and got a refund due to high Reno payments)

[@The_real_Toddington]

What if you have 3 etf index funds? You don't own the assets.. do you still have to sell?

[@robertk5441]

3 etf index funds, that's an asset. You trade etf funds like stocks. For income tax purposes, it doesn't matter if you incurred capital gains from selling stocks or etfs.

[@johnrolavs6794]

I have a couple of questions if you would be kind enough to answer. Are physical gold and silver bullion holdings included in this tax, or are they only covered by capital gains tax? They are not specifically mentioned. Also, I have sent money to my fiancé in the Philippines to purchase property. As a foreigner I'm not allowed to own property. Can this money be taxed? Can they tax cash gifts sent to my fiancé prior to me leaving? I have no problem with this, she is solid. Thank you so much for the information.

[@RealEstateTaxTips]

Gifts aren't taxable. The money you sent over - technically was already taxed once. Gold and silver are generally long-term capital assets - so if you have a gain, you need to pay capital gain tax upon departure.

[@davidbruner3779]

I did not see residence in the definition section of the Act

[@twrobel]

If the second country starts recognizing you as a tax resident, are you automatically loosing tax resident status in Canada?

[@RealEstateTaxTips]

No unfortunately.

[@akashaofthenile6077]

So if you sold your home,,, gave back your license,,sell your car,,,is there a fee to transfer all your money to another country and would there be any fees/tax to pay prior to leaving

[@RealEstateTaxTips]

If you sell and report the sale on your tax returns, pay your Canadian taxes, then there's no "fees" other than maybe some bank fees to transfer your cash somewhere else.

[@sirwolly]

What if I stay a resident of Canada but live in a foreign county. Do I only pay federal tax then? Do I still get the TFSA yearly contribution room? Can I still claim the credit for eligibale dividends in my income tax? Thank you

[@RealEstateTaxTips]

You can keep your tax residency - it is an option. You can continue to file your tax returns

[@sirwolly]

@@RealEstateTaxTips Thank you for responing. Much appreciated. I wish it would have been more detailed and answering my questions.

[@RealEstateTaxTips]

Feel free to contact your accountant or our office if you currently don’t work with one.

[@redletters4026]

Hi cherry, Can you please help me of my situation. I bought a townhouse in 2010 live in it for ten years then bought and moved to a detached in 2020. The townhouse currently rental.if i sell the detached and go back to townhouse am i subject to capital gains. Or should i sell the townhome? Pls. Teach me the most strategic way. Thank u in advance. God bless.

[@belle8i]

You pay capital gains on your rental if you sell it. You don't pay capital gains on your primary residence. So sell your primary residence and move back to the townhouse.

[@RealEstateTaxTips]

There're many factors involved - just because you move into the rental doesn't mean you don't have to pay tax. It goes back to your particular situation. And what you want to achieve. Best to consult with an accountant to help you with the tax decision.

[@redletters4026]

@@belle8i thank u

[@redletters4026]

@@RealEstateTaxTips im just trying to avoid much of the capital gains.pls teach me the most strategic way. Thanks.

[@moneekdilawari4508]

I don’t think brokerages in Canada even allow you to hold TFSA outside of Canada

[@RealEstateTaxTips]

I've come across so many cases that the staff at financial institutions encourage individuals to open TFSA without considering if they are Canadian tax residents or not

[@moneekdilawari4508]

@@RealEstateTaxTips Wow that’s surprising. That wasn’t the case with IBKR though. They told me I can’t hold TFSA and RRSP if I plan to be a non-resident. Although I do think the gov’t allows one to hold RRSP, if I’m not wrong, just additional contributions aren’t allowed.

[@TakashiNippon]

The big banks will allow u to hold brokerage account. And as a non resident ur allowed to hold RRSP and TFSA In not in the incentive for the Canadian government to force u remove all ur money outside of Canada. They have a high incentive to keep most of ur assets in Canada.

[@moneekdilawari4508]

@@TakashiNippon Nope, I've confirmed with two of the big banks and they told me I can't hold RRSP and TFSA as a non resident.

[@F76291]

If I withdraw 43000 from my rrsp and close account while living in Canada how much will be tax .. also with new capital gains tax does that apply to rrsp withdrawals

[@mayiermaimaiti2015]

Yes you’d pay rrsp withholding amounts

[@LifeouttheDirt]

@RealEstateTaxTips what if i move to Central America and don't have any income, property or vehicles in Canada but i want to keep my drivers license, bank account and cards?

[@RealEstateTaxTips]

Depending on your other ties, driver license bank cards are secondary ties, not as significant as the primary ties such as dependents, home available for you to come back, etc.

[@LifeouttheDirt]

@@RealEstateTaxTips thanks for the reply, however you didn't answer my question.

[@JignaTrivedi-ml2ym]

Ok my question is , as being citizen if i own nothing, nothing in my bank account, all i have is canadian passport and a drivers licence , will i still have to pay tax if i leave canada permanently?

[@acaprobni834]

@RealEstateTaxTips What about money in my bank checking account? Would that be taxable?

[@RealEstateTaxTips]

Already taxed so no more tax implication.

[@el_killorcure]

​​​@@RealEstateTaxTipsbut would it make you a tax resident? You mentioned it as secondary tie alongside non-registered accounts but didn't see you go into further detail on the video. I am leaving and would only keep cheching account, credit card, non-registered account and an RRSP. I expect to file the usual taxes on those but as a non resident. 29:32

[@tchiasson10]

If I only own a rental cottage, would this be considered as a primary residence and would I be considered a tax-resident?

[@marionovoa3846]

If you own a mattress you will be considered a tax resident lol

[@RealEstateTaxTips]

It depends... if it is rented, then not as much.

[@jamesbond-fu1qb]

What about Canadian pension withholding tax?

[@RealEstateTaxTips]

Generally speaking, if you become non-resident 25% withholding but you might be able to pay less if you file for a Canadian non-resident return

[@raymondlowon7799]

​@@RealEstateTaxTipslove your video , were retiring overseas next year. With all the withholding tax for pensions and RRSP withdrawal. When you file a non resident income tax return if your income is low, you should get most of your withholding tax back

[@aloquicious]

I'm retired and living in Thailand now for over a year. I have no ties at all in Canada. No wife, car nor property. My only bank account in Canada is the one where my pension is deposited. Am I obligated to report any money made in Thailand?

[@BrothaJeff]

🤫

[@RealEstateTaxTips]

technically yes if you haven't officially left Canada as a tax resident yet.

[@mishasusoeff4070]

I hate this version of Canada… never in my life did I dream it could be so corrupt. I dream of leaving everyday. Frankly, in the past I didn’t mind paying taxes, and as a high net worth entrepreneur the amounts are significant. Recently every dollar I send these people makes me complicit in their corruption. It makes me sick to my stomach to participate. I can’t believe what my beloved country has become.

[@RealEstateTaxTips]

It is sad - ArriveCan is one good example in front of us. What's going to happen to the entire scandal? Probably nothing at the end.

[@maryma5044]

sherry, what happens if the net rent income is negative? do you get money back from CRA?

[@RealEstateTaxTips]

Losses are gone unfortunately. You've not paid taxes that particular year and therefore no tax refund.

[@loktom4068]

Don't even think about it. If you have 3-4 years of loss in a row, you'll get knocked, knock on your door 🚪.

[@leemehlhorn]

Actually, you missed one important point about determining residency status. Canada has tax treaties with other countries eg: Denmark. If you are deemed a citizen of that country then you are deemed a non-resident of Canada. Quote form CRA "You become a deemed non-resident of Canada when your ties with the other country become such that, under the tax treaty with which Canada has with the other country, you would be considered a resident of that other country and not Canada."

[@thangtran3112]

Being in a tax-treaty country does not affect your 'deemed resident status" or not. It will only give you the tax credits, if you are deemed resident with regards to your significant ties and secondary ties

[@leemehlhorn]

@@thangtran3112 I beg to defer based on what I was told by the CRA. If you are considered a resident of that country you are deemed a NON-Resident for tax purposes. Being a classed a resident in Denmark I'm a non-resident of Canada in CRAs eyes. Thus any income earned while in Denmark is not subject to taxation in Canada ( avoiding double taxation). I'm not sure what you mean by tax credits..

[@thangtran3112]

@@leemehlhorn if you are deemed NOT-resident and living in Denmark, you are not supposed to pay Canadian tax. But if you are Canada deemed-resident, living in Denmark, due to your significant ties, you will need to report worldwide income to Canada, and use your Denmark tax as credits

[@RealEstateTaxTips]

Agree - but when you are deemed non resident of Canada, you are still non-resident that are subject to the departure tax. You don't have to pay Canadian tax on your Denmark income, but you still need to continue to file taxes on your Canadian income. And if I am not mistaken, Denmark taxes you on worldwide income as well - so you would then be required to report your Canadian source income on your Denmark return.

[@geoffreyreeks2422]

The Canadian Bureaucracy (i.e. government) seems to be even more hungry to take the wealth that you create (i.e. tax you) than is the Australian Bureaucracy (i.e. government). The Australian Bureacracy taxes small businesses so much that they fail. Where can someone live and pay only a fair tax rate? Certainly, that is not Australia or Canada.