Retiring outside Canada raises three questions at once: whether you are still a Canadian resident for tax, which Canadian benefits keep paying, and how you’ll cover health care once provincial coverage ends. This guide works through each, along with banking, registered accounts, estate planning and coming back. It is one of the guides for specific groups in life stages and life events. If you plan to spend only the winter away, the Canadian snowbird guide is the better fit.
Tax residency
Whether Canada still taxes your worldwide income depends on the residential ties you keep: a home, a spouse or dependants in Canada and personal property are significant ties; a driver’s licence, bank accounts and a provincial health card are secondary ones. Someone who keeps strong ties can remain a factual resident even while living abroad. How the CRA weighs ties is explained in am I a Canadian tax resident.
Becoming a non-resident has its own tax consequences. You are generally treated as having sold most of your property at fair market value on the day you leave (departure tax), with exceptions such as Canadian real estate and registered plans; the filing steps and forms are in the leaving Canada tax checklist. After you leave, Canada withholds non-resident tax on pension, RRIF and other Canadian-source payments, often at a lower rate under a tax treaty; the rates and the forms to reduce withholding are in the non-resident tax guide.
Which benefits follow you
| Benefit | Outside Canada |
|---|---|
| CPP and QPP | Paid anywhere in the world, subject to non-resident withholding |
| OAS | Keeps paying if you lived in Canada at least 20 years after age 18; with fewer years, it stops after you have been away more than 6 months |
| GIS | Stops once you have been outside Canada for 6 months in a row |
| Workplace pensions | Usually paid abroad, including public-sector plans |
| Provincial benefits and most credits | Generally end when you are no longer a resident |
You can get the OAS pension from age 65 if you have lived in Canada for at least 10 years since age 18 and are a Canadian citizen or legal resident when it is approved (living abroad, you need 20 years and must have been a citizen or legal resident the day before you left); 40 years after age 18 gives the full pension, fewer years a partial one. Working doesn't affect eligibility, but high income is taxed back. The full rules, including how years in a country with a social security agreement can count, are in am I eligible for OAS, and the CPP side in the CPP guide.
Health care
Each province requires you to be physically present for part of the year to keep your health coverage, and the limits differ; once you move away permanently, coverage ends after the province’s allowed absence. International health insurance, expat plans or the destination country’s public system (where residents can join) replace it. Travel medical insurance covers emergencies on trips but not living abroad; when it’s worth buying is covered in is travel insurance worth it. Public healthcare workers with a provincial pension, such as HOOPP members, can usually have the pension paid abroad; see finances for healthcare workers.
Banking and registered accounts
| Account | As a non-resident |
|---|---|
| Bank accounts | Most banks let you keep them, with a non-resident designation; some products may not be available |
| TFSA | A non-resident can keep a TFSA and withdraw from it without Canadian tax, but gets no new room for a full year of non-residency, and a contribution made while a non-resident is taxed at 1% a month until it is withdrawn in full or residency resumes. |
| RRSP and RRIF | You can keep them; withdrawals are subject to non-resident withholding |
Some retirees time large RRSP or RRIF withdrawals around the move, since the tax on them changes once they are non-resident; RRIF minimum withdrawals still apply each year.
Estate planning
Assets in two countries can mean a will in each (written so they don’t revoke each other), probate in both, and tax on death wherever you are resident. Powers of attorney may need to be recognized in the new country. The documents are covered in how to make a will in Canada and the power of attorney guide.
Coming back to Canada
Returning means re-establishing ties, applying for provincial health coverage (some provinces have a waiting period) and telling the CRA you are resident again. TFSA room accumulates again from the year you become resident, but not for the years you were away.
Checklist before leaving
| Area | Task |
|---|---|
| Tax | Decide whether you’ll stay resident; estimate departure tax; review the tax treaty with your destination |
| Pensions | Confirm OAS will continue abroad; arrange direct deposit for CPP, OAS and any workplace pension; file the form to reduce withholding if a treaty applies |
| Health | Arrange health insurance before provincial coverage ends; tell your provincial health plan |
| Accounts | Tell your banks and investment firms; plan RRSP and RRIF withdrawals |
| Estate | Update your will and powers of attorney; consider a will in the new country |
Related resources
Sources
The figures and rules on this page come from these sources, last checked against them between September 29, 2026 and September 30, 2026. How we check facts.
- Canada Revenue Agency: How non-residency affects your TFSA
- Canada Revenue Agency: If you owe tax on non-resident TFSA contributions
- Government of Canada: Old Age Security - Do you qualify
- Government of Canada: Old Age Security - While receiving OAS
- Government of Canada: Old Age Security - How much you could receive