Declaring non-residency in Canada: A practical CRA guide

Understanding how to declare non-residency in Canada matters because tax residency is separate from your citizenship, permanent residence, or immigration status.

Key takeaways

• Moving abroad does not automatically make you a non-resident. The CRA looks at the residential ties you keep or establish, not simply the date you leave Canada.
• You usually do not need to file Form NR73. Its purpose is to ask the CRA for an opinion on your residency status rather than to formally “declare” yourself a non-resident.
• Your departure date matters. It is generally based on when you leave Canada, when your spouse or common-law partner and dependants leave, and when you establish residence in another country.
• Departure tax may apply to certain assets. Canada can treat some property as if you sold it at fair market value when you emigrate, so check the rules and whether Forms T1243 or T1161 apply.
• Leaving Canada does not necessarily end your Canadian tax obligations. Canadian-source income such as rent, pensions, dividends, or proceeds from certain property sales may still be subject to Canadian tax or reporting requirements.

Disclaimer: This guide is for general information only and was reviewed against CRA guidance last checked in August 2026. Outcomes depend on your ties, dates, and sometimes tax treaties, so use the checklist below to review residency, forms, assets, and what to handle after departure.

Check whether you can stop being a Canadian tax resident

The first thing you need to consider is whether your circumstances support non-resident status under CRA rules.

If you still keep strong residential ties, the CRA may treat you as a factual resident even after a move. In some cross-border cases, however, a tax treaty can result in you being treated as a deemed non-resident.

• You are usually an emigrant for tax purposes if you leave Canada to live in another country and sever your significant residential ties with Canada.
• You may stay a factual resident if significant ties – such as your home, spouse or common-law partner, or dependants – remain in Canada.
• You may become a deemed non-resident of Canada if you would otherwise be a Canadian resident but an applicable tax treaty treats you as resident in the other country.
• How long you spend abroad can matter, but time outside Canada does not by itself override significant residential ties.
• This is about tax residency only, and Canada’s tax system treats that separately from citizenship or immigration status.

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The residential ties that matter most

The CRA generally considers three ties particularly significant:

✅ a home in Canada

✅ a spouse or common-law partner in Canada

✅ dependants in Canada.

Secondary ties can also matter, particularly when several remain in place after you leave.

• Primary ties: home, spouse or common-law partner, dependants.
• Secondary ties: provincial or territorial health coverage, a Canadian driver’s licence, bank or credit card relationships, personal property, and social memberships.

When treaty tie-breaker rules matter

A common question is whether ties to two countries automatically make you taxable as a resident of both.

Not necessarily: if both countries treat you as resident, the applicable tax treaty may contain tie-breaker rules – such as permanent home and centre of vital interests – that determine where you are a resident for treaty purposes.

You may need to check the applicable treaty if you keep homes in both countries, your spouse or children remain in Canada, or you regularly divide your time and work between Canada and another country.

Decide whether to use CRA Form NR73

You can use CRA Form NR73, Determination of Residency Status (leaving Canada) to ask the CRA for an opinion on your residency status. It can be useful when your position is unclear, but filing it is not what makes you a non-resident, and the CRA’s opinion is based on the facts you provide.

The practical question is whether you need the form at all. For many straightforward departures, you may be able to determine your status from the CRA’s residency rules and report your departure correctly on your Canadian tax return if you need to file one.

An NR73 opinion is not binding on the CRA and can be reviewed later if further information comes to light.

• Consider NR73 if your residential ties are mixed, your status is genuinely uncertain, or the interaction with a tax treaty is unclear.
• Consider professional tax advice if you keep significant ties such as a home, spouse or common-law partner, or dependants in Canada, or have complex Canadian income or assets.
• If you do not file NR73, keep clear records supporting your position, such as evidence of your move, your new home and residential ties abroad, and when your significant Canadian residential ties ended.

File your departure-date return correctly

For the year you leave, you may need to file a Canadian T1 return that shows your departure date and reports the income that applies before and after you became a non-resident. If you were a Quebec resident before leaving, you may also need to deal with Revenu Québec.

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The CRA usually considers your departure date as the latest of these three dates:

• when you leave Canada
• when your spouse or common-law partner and dependants leave
• the date when you become resident in the country you settle in.

There are exceptions, but getting this date right matters because it affects your income reporting and any departure tax calculations.

• Enter your departure date in the residence information area of the return.
• Report worldwide income for the part of the year you were resident in Canada.
• Check whether you need to file Form T1161 if the total fair market value of property you owned when you left exceeded CAD 25,000, taking the CRA’s specified exclusions into account.
• Check Form T1243 if the deemed disposition rules apply to your property, and Form T1244 if you want to elect to defer payment of departure tax.

What to report before and after your departure date

Your Canadian tax treatment changes when you become a non-resident. Before your departure date, you generally report worldwide income; after it, Canadian non-resident tax rules apply to your Canadian-source income.

• Before departure: report employment, investment, and other worldwide income up to the departure date.
• After departure: determine which Canadian-source income you must report in Canada and what taxes apply.
• Do not assume all Canadian income received after you leave goes on your T1 return. Some income may instead be subject to non-resident withholding, while elections or separate filing requirements can apply in certain cases.
• Check the specific rules for Canadian rental income, pensions, investments, and property sales rather than treating them all the same way.

Check whether departure tax applies to your assets

Departure tax is the informal name commonly used for Canada’s deemed disposition rules when you emigrate. When you cease Canadian residency, the CRA may treat you as if you disposed of certain property at fair market value immediately before you left, even though you did not actually sell it.

This deemed disposition can crystallize accrued gains or losses for Canadian tax purposes. Form T1243 is used to report property and calculate gains arising from the deemed disposition, while Form T1244 can be used to elect to defer payment of the resulting tax. Depending on the amount involved, you may need to provide security.

If the total fair market value of relevant property you owned at departure exceeded CAD 25,000, check whether Form T1161 is required, taking the CRA’s specified exclusions into account.

Which assets are usually excluded or still taxable later

Excluded from departure tax does not mean exempt from Canadian tax forever. Canadian real estate is generally excluded from the deemed disposition on emigration, but rental income or a later sale can still trigger Canadian withholding, filing requirements, or procedures for non-residents disposing of taxable Canadian property.

Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) are excluded from the departure-tax deemed disposition, but withdrawals after you leave can be subject to Canadian non-resident withholding.

A Tax-free Savings Account (TFSA) can generally remain open, but contributions made while you are a non-resident can trigger a 1% monthly tax, and you generally do not accumulate new contribution room for a year during which you are non-resident. Your new country may also tax TFSA income or gains even though Canada does not.

Plan for TFSAs, RRSPs, real estate, and Canadian-source income after leaving

After the move, it is easy to assume the Canadian tax paperwork is over. In reality, many non-residents still need to deal with TFSA contribution rules, RRSP or RRIF withdrawals, rental withholding, property-sale requirements, or Canadian tax on pensions, dividends, and other Canadian-source income.

• Avoid making new TFSA contributions while you are a non-resident unless you have confirmed how the contribution rules apply to you.
• Expect RRSP or RRIF withdrawals to be subject to Canadian non-resident withholding, although an applicable tax treaty may reduce the rate.
• Tell Canadian payers that you are a non-resident and provide the information they need to apply the correct withholding treatment.
• If you keep Canadian rental property, check the usual 25% withholding on gross rent, the Section 216 election, and whether Form NR6 could allow withholding based on net rental income.
• Keep records of your residency status, applicable treaty position, Canadian-source income, and Canadian tax withheld while you are living abroad.

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How to move money abroad after you leave Canada

Leaving Canada does not always mean moving every dollar out at once. You may still need CAD for Canadian tax payments, property costs, subscriptions, or other bills, while also needing local currency for everyday spending in your new country.

A multi-currency account can make this easier by letting you keep some money in CAD and convert funds when you actually need another currency. With Wise, for example, you can hold CAD alongside 40+ other currencies and convert between them using the mid-market exchange rate, with the applicable conversion fee shown upfront.

Keeping some funds in CAD can also help you avoid converting money back and forth unnecessarily when Canadian expenses arise. Depending on the features available to your account, you may also be able to receive CAD and use Canadian account details for eligible payments.

• Keep enough CAD available for any remaining Canadian bills, tax payments, or property costs rather than converting everything immediately.
• Compare the total cost of an international transfer, including both the transfer fee and any exchange-rate markup.
• Plan ahead if money is needed for rent, a property purchase, tax deadlines, or other time-sensitive payments.
• Consider whether holding multiple currencies would help if you regularly receive money in Canada but spend it in another country.
• Keep statements and transfer records, especially for large transfers where a bank or other financial institution may ask about the source of the funds.

Sources

(accessed 29th August 2026)

• CRA: Leaving Canada (emigrants), for departure date and filing.
• CRA: Determining your residency status, for ties and status tests.
• CRA: Form NR73, Determination of Residency Status (leaving Canada), for what NR73 does.
• CRA: Dispositions of property for emigrants of Canada, for deemed disposition and forms.
• CRA: Non-residents of Canada, for post-departure income and withholding.
• Income Tax Folio S5-F1-C1, Determining an Individual’s Residence Status, for treaty and tie rules.
• CRA: Tax treaties, for dual-residence cases.
• Crowe Soberman: Departure Tax in Canada, for plain-language context.