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Personal income tax on TFSA gains/income payable if non-resident?

mountains

Newbie
Sep 18, 2022
1
0
Hi. I am considering changing tax residency from Canada (current) to a European jurisdiction that has low personal income tax and a double tax treaty with Canada. Credibly aware of related CRA forms.
Re TFSA - I have an existing TFSA and, per CRA rules, will not contribute incremental funds during any period of non-residency. Assume no withdrawals. Hopefully, capital gains and dividend income will accrue in TFSA during period of non-residency. I'm not sure if Canadian tax-wrapper on TFSA impacts overseas tax residents.
Q - Are any annual capital gains and/or dividend income in TFSA likely to be taxable in the European jurisdiction in which I would be tax resident? (I presume not in Canada)
 

canuck78

VIP Member
Jun 18, 2017
52,973
12,774
Hi. I am considering changing tax residency from Canada (current) to a European jurisdiction that has low personal income tax and a double tax treaty with Canada. Credibly aware of related CRA forms.
Re TFSA - I have an existing TFSA and, per CRA rules, will not contribute incremental funds during any period of non-residency. Assume no withdrawals. Hopefully, capital gains and dividend income will accrue in TFSA during period of non-residency. I'm not sure if Canadian tax-wrapper on TFSA impacts overseas tax residents.
Q - Are any annual capital gains and/or dividend income in TFSA likely to be taxable in the European jurisdiction in which I would be tax resident? (I presume not in Canada)
Are you sure you can contribute to a TFSA during a period of not being a tax resident? You will need to contact CRA but many can still be tax residents without being residents of Canada.