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what happens if one is to leave Canada

M

mrsTF

Full Member
Apr 7, 2021
34
5
Hi,
I would like to ask for your advice.
I have lived in Canada for 18 years, but at this moment I would like to go back to my home country, in Europe. I have dual citizenship, Canadian and EU country.

I have the following assets and I don't know exactly how will they be taxed if i decide to cease to be a factual resident of Canada:

- TFSA and RRSP in TD - these I know they won't be affected, I will not be able to contribute anymore, but they won't be taxed.

- RRSP with the company i work for

- savings accounts in EQ and Simplii banks (which I can/will take out or transfer), if not, not sure what would be the tax.

- DRIPs with Computershare- I don't know how these will be taxed (I get a T5 slip and pay taxes every year on these), and what happens with them when i leave.

- investment cash accounts (CAD and USD) on TD - these will be taxed, but not sure how (i think i have read that there will be a virtual sell then an acquision back and i will be taxed on capital gain), here I have T5s and T3s yearly as well.

What do I do with the TFSA after I leave? Also, when pension time comes, what will happen?

Thanks very much!
 
Last edited:
C

canuck78

VIP Member
Jun 18, 2017
52,969
12,771
mrsTF said:
Hi,
I would like to ask for your advice.
I have lived in Canada for 18 years, but at this moment I would like to go back to my home country, in Europe. I have dual citizenship, Canadian and EU country.

I have the following assets and I don't know exactly how will they be taxed if i decide to cease to be a factual resident of Canada:

- TFSA and RRSP in TD - these I know they won't be affected, I will not be able to contribute anymore, but they won't be taxed.

- RRSP with the company i work for

- savings accounts in EQ and Simplii banks (which I can/will take out or transfer), if not, not sure what would be the tax.

- DRIPs with Computershare- I don't know how these will be taxed (I get a T5 slip and pay taxes every year on these), and what happens with them when i leave.

- investment cash accounts (CAD and USD) on TD - these will be taxed, but not sure how (i think i have read that there will be a virtual sell then an acquision back and i will be taxed on capital gain), here I have T5s and T3s yearly as well.

What do I do with the TFSA after I leave? Also, when pension time comes, what will happen?

Thanks very much!
Click to expand...
Even if you leave Canada you could still be a tax resident so you’ll need to contact CRA so they can assess whether you have enough ties to make you a tax resident or not.
 
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M

mrsTF

Full Member
Apr 7, 2021
34
5
jclarke99 said:
Canuck78 is correct. According to the link below...
An individual's residency status is determined on a case by case basis and the individual's whole situation and all the relevant facts must be considered.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
Click to expand...
Yes, i plan to cut primary ties, i rent an apartment, so i won't be renting anymore, I will be selling my car, the furniture in my apartment, I would like to keep the debit bank accounts, then i have to keep the investment accounts (RRSP and TFSA) and an address in Canada. So it would be that i have secondary ties.
Not sure where is that putting me. I will have to probably get a consultant/specialist on cross border taxation, because i would rather not contact CRA, which will put me on the spot..
Thanks, folks!
 
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