Newcomers to Canada: Money Guide for Your First Year

Arriving in Canada means setting up a financial life from scratch: a Social Insurance Number, a bank account, provincial health coverage, a Canadian credit file and a first tax return, usually within a few months. Start with the SIN: you need it to work and to file a return, and almost everything else asks for it. The CRA lets new residents apply for benefit and credit payments before their first return, and TFSA room counts from the day you become a resident. The steps are in order below, followed by sections for new permanent residents, citizenship, newcomers from China, India and the Philippines, and work permit holders.

Your first-year money steps

1. Get a Social Insurance Number. You need a SIN to work and to file a return. At a Service Canada office you get the number during your visit if your documents are in order; online and mail times, and the documents for each status, are in how long it takes to get a SIN.
2. Open a bank account. Most large banks run newcomer packages; compare them in bank accounts for newcomers, and see what you need to open a bank account.
3. Apply for your provincial health card. Some provinces make new residents wait before coverage starts, so check the provincial health coverage rules and waiting periods and plan for private coverage during any gap.
4. Start a Canadian credit file. A credit history from another country usually doesn’t carry over; choosing a first credit card as a newcomer covers secured cards, newcomer card programs and how a file builds.
5. Apply for benefits, then file your first return. The CRA lets new residents apply for benefit and credit payments before their first return: Form RC151 for the Canada Groceries and Essentials Benefit, or Form RC66 for families who apply for the Canada Child Benefit. Your first return is due the year after you become a resident and reports income from the day you arrived (a newcomer’s first tax return).

The full list in priority order, including updating a temporary SIN, CRA registration and opening an RESP, is in the checklist for new permanent residents below.

Guides by immigration status

Guides by home country

• Moving from the US to Canada: what happens to US retirement accounts, health coverage and currency, and how Americans set up in Canada.
• Newcomers from India: NRE and NRO accounts, the India-Canada tax treaty, and Indian savings schemes after you move.
• Newcomers from China: moving money out under China’s foreign-exchange limits, banking in Mandarin or Cantonese, and Chinese investments after arrival.
• Moving from the Philippines to Canada: sending money home and which Philippine benefits to keep or close.

Setting up your finances

Moving money and proof of funds

Several immigration programs ask you to show settlement funds before you arrive; the amounts and exemptions are on the proof of funds page. At the border, the CBSA requires you to declare currency and monetary instruments (cash, bank drafts, cheques and similar) worth CAN$10,000 or more in total.

To bring savings across, the usual routes are a bank wire, a money transfer service and a bank draft. Costs differ mostly in the exchange-rate margin rather than the visible fee, so the amount that arrives is the clearest comparison; the options are compared in how to transfer money to Canada. For regular payments the other way, see the money transfer apps for sending money abroad.

Banking and credit

The large banks and many credit unions run newcomer programs, which typically waive account fees for a period and offer a credit card without a Canadian credit history. Terms change often, so they are compared in the newcomer bank account guide. Students have their own packages (international student banking).

A credit file starts with your first Canadian credit product, and on-time payments are what build it. The card options, from secured cards to newcomer programs, are in the first credit card guide for newcomers; rent reporting services can add rent payments to a thin file.

Insurance

• Health. Provincial coverage costs nothing once it starts, but the start date depends on the province: in British Columbia, for example, new and returning residents complete a wait period before MSP coverage begins. Provincial health coverage and waiting periods covers each province and private interim plans.
• Tenant insurance. Many leases require it; see the tenant insurance comparison.
• Car insurance. Required to drive a car you own; rates and rules are in the car insurance section.
• Life insurance. Usually considered once someone depends on your income; see the life insurance section.

Buying a home and investing

Lenders treat newcomers differently on credit history and down payment, which mortgages for newcomers explains. A first-time buyer can save for a home in an FHSA for new Canadians.

For saving and investing, the two accounts that start right away are the TFSA, whose room counts from the day you become a resident (TFSA room for new residents), and, for a first home, the FHSA. RRSP room appears once you have Canadian earned income on a return. The order to open them in is part of the PR checklist below.

Credentials and your first-year budget

If you work in a regulated profession, getting your credentials recognized can take months and cost money in exams, courses and lost income; check the regulator for your profession for its timelines and costs, and plan for lost income while you wait.

The first year often brings uneven income and one-off settlement costs (deposits, documents, furniture, transit passes). A budget that separates housing, food and transport, settlement costs and an emergency reserve makes the gaps visible early; the cost of living in Canada section compares what those categories cost by city.

New permanent residents

Becoming a permanent resident opens the full set of Canadian accounts and benefits, and the order you set them up in matters: a SIN comes first because almost everything else asks for it, benefit applications can go in before your first return, and TFSA room starts on the day you become a resident.

New PR financial checklist in priority order

Your SIN as a new permanent resident

A permanent resident’s SIN doesn’t expire. To apply, Service Canada accepts your PR card, or your Confirmation of Permanent Residence (COPR) within one year of becoming a permanent resident, as the primary document, plus a secondary identity document such as your passport. Processing times by method are in how long it takes to get a SIN.

If you held a temporary SIN starting with 9 on a work or study permit, a change in status is one of the times Service Canada asks you to update your SIN record, and its update page says: “Your SIN stays the same unless your status changes.” Once the record is updated, give the current number to everyone who reports income or benefits under it:

Benefits you can apply for

The CRA lets new residents apply for benefit and credit payments before filing a first return. Form RC151 applies for the Canada Groceries and Essentials Benefit (the former GST/HST credit); families eligible for the Canada Child Benefit use Form RC66 instead (how to apply for the CCB), and the CRA uses it for the CGEB and related provincial payments too. The CRA asks for your date of entry, immigration status and your family’s income for up to two years before you arrived.

Later benefits build from your time here. The Canada Workers Benefit is claimed on your return if you have low working income. For Old Age Security: 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. Social security agreements with other countries can help some newcomers qualify; see OAS and GIS for newcomers. CPP builds from your contributions while you work here (the Canada Pension Plan).

Accounts to open

A chequing account comes first: you need one for direct deposit of pay and benefits. After that:

• TFSA. Room starts on the day you become a resident if you are 18 or older, and the year you land brings the full $7,000 limit for 2026 (TFSA room for new residents).
• RRSP. Room is 18% of the previous year’s earned income, up to the annual dollar limit, so it first appears on the Notice of Assessment for your first return.
• FHSA. $8,000 a year up to $40,000 in total, for residents who are first-time buyers; see the FHSA for new Canadians.
• RESP. See the section below.

RESP grants for your children

The Canada Education Savings Grant adds 20% on the first $2,500 contributed each year, a grant of $500, up to $7,200 per child. The child needs a SIN and must live in Canada. Unused grant room carries forward, but the basic grant is capped at $1,000 in any one year, so starting early matters more than catching up later. Lower-income families can also get the additional CESG and the Canada Learning Bond; see how the CESG works.

Your first tax return as a PR

Your first return is due by April 30 of the year after you become a resident. It reports your income from all countries from the day you became a resident. A newcomer’s first tax return walks through the part-year rules, and tax on worldwide income covers how income from abroad is reported after you become a resident.

If you keep investments outside Canada, Form T1135 applies once the total cost of your specified foreign property is more than $100,000 at any time in the year; Form T1135 explains what counts.

Citizenship or staying a permanent resident

For money, Canadian citizenship changes less than many people expect. Benefits, registered accounts and taxes depend on where you live and what you contribute, not on your passport, so a permanent resident and a citizen living in Canada are treated almost the same. The differences are in your rights (voting, some jobs), in how long you can live abroad without risking your status, and in the cost and time of applying.

What stays the same

These programs treat a permanent resident and a citizen who live in Canada the same way:

What only citizens can do

IRCC lists two things a permanent resident can’t do: vote or run for political office, and hold some jobs that need a high-level security clearance. Citizens can also hold a Canadian passport, which matters for anyone who travels or works abroad often.

The residency obligation

The largest financial difference is what happens if you spend years outside Canada. To keep PR status you must have been in Canada for at least 730 days during the last five years (the days don’t need to be continuous, and some time abroad can count). PR status isn’t lost automatically: it ends only after an official decision, if you renounce it, or if a removal order takes effect. Citizens have no residency obligation, so a long posting abroad, caring for family in another country or retiring overseas doesn’t put their right to return at risk.

That matters for long-range plans. OAS, for example, counts years of residence, and the rules for receiving it while living outside Canada are in the Old Age Security section. If you leave and later come back, returning to Canada covers residency, health coverage and accounts on your return.

Taxes don’t change with citizenship

Canada taxes you on your residence, not your citizenship: a resident pays Canadian tax on worldwide income whether they are a citizen or a permanent resident, and a citizen who moves abroad and cuts their residential ties generally becomes a non-resident. The tests are in am I a Canadian tax resident?, and what a resident reports is in tax on worldwide income. The United States is the main exception the other way, since it taxes its citizens wherever they live; see dual citizenship and taxes.

Who can apply

IRCC’s main requirements for an adult:

• Physical presence. At least 1,095 days (3 years) in Canada during the 5 years before you sign the application. IRCC encourages applying with more than 1,095 days in case of a calculation problem.
• Taxes. Filed in Canada, if you had to, for at least 3 years during the same 5 years.
• Language. If you are 18 to 54 on the day you sign, proof of adequate English or French.
• Citizenship test. Also for adults aged 18 to 54.

What it costs

Fees are from IRCC’s fee list and can change. Processing times also change; IRCC publishes the current estimate on its processing-times page.

After you become a citizen

• Apply for a passport if you plan to travel.
• Keep your citizenship certificate or proof of citizenship with your other records.
• Review your will and beneficiary designations if your family’s plans have changed.
• If you plan to sponsor family, the fees, income rules and undertaking for sponsoring a spouse or partner are covered separately.

From China

Moving from China to Canada means running money across two systems that work very differently. In China, daily life runs on WeChat Pay and Alipay, foreign currency is rationed by the State Administration of Foreign Exchange (SAFE), and social insurance is tied to where you are registered. In Canada, payments run on debit cards, credit cards and Interac e-Transfer, and once you become a resident the CRA taxes your income from every country.

Your first months: what differs for Chinese newcomers

Arriving from China, the basic setup runs in the same sequence as for any newcomer, and the PR checklist above lists it in priority order. The Social Insurance Number comes first; wait times and the documents for each immigration status are on the SIN application page. People arriving on a temporary permit have a few extra rules, set out in money on a work permit.

Three tasks are specific to coming from China:

• Plan transfers out of China before you need the money. The SAFE quota (below) applies per person per year, so a large amount can take more than one year, or more than one family member’s quota.
• Update your Chinese banks and brokers. Give them your new address and residency so statements, tax forms and account restrictions stay current.
• Keep records of where your savings came from. Canadian banks can ask about the source of a large deposit, and Chinese banks ask for documents before they convert yuan.

Banking in Mandarin or Cantonese

The large Canadian banks have branches with Mandarin- and Cantonese-speaking staff in cities with large Chinese communities, such as Greater Vancouver and Greater Toronto, and most run newcomer packages that waive fees for a period and offer a credit card without a Canadian credit history. The packages change often, so they are compared in bank accounts for newcomers.

Bank of China (Canada) and ICBC Canada are the Canadian subsidiaries of two Chinese state banks. They know the paperwork for transfers from China, but they have far fewer branches and ATMs than the large Canadian banks, so many newcomers use one of them for transfers and a large Canadian bank for everyday banking.

Paying for things without WeChat Pay or Alipay

WeChat Pay and Alipay are accepted at only a few stores in Canada, mostly Chinese-owned businesses, and they can’t pay rent, utilities or most bills. Everyday payments run on:

• Debit cards (Interac) for in-store purchases from a chequing account;
• Interac e-Transfer for sending money to another person’s email address or phone number;
• Visa and Mastercard credit cards, which also start your Canadian credit file (UnionPay cards work at far fewer merchants in Canada than in China);
• Apple Pay and Google Pay, which run on a Canadian debit or credit card.

Moving money from China to Canada

China limits how much foreign currency each person can buy: an annual quota of US$50,000 equivalent per person. Above the quota, banks ask for more documents and approval under SAFE rules, along with proof of where the money came from. Families often spread a move over more than one year, or use each adult’s own quota for their own savings.

Most transfers from China go by bank wire through SWIFT, the international network every large Canadian bank receives on. China also runs CIPS, the Cross-border Interbank Payment System, which settles payments mainly in yuan; in Canada it is used mostly by Chinese banks such as ICBC Canada and Bank of China (Canada). Fewer online transfer services send from yuan accounts than from other currencies. Services, costs and what to compare are in how to transfer money to Canada.

Proceeds from selling property in China

Selling a home or apartment in China to fund your move usually takes several steps: paying the Chinese tax on the sale, getting the documents that show it was paid, applying to convert amounts above your quota, and wiring the money, often in several tranches. Keep the sale contract, tax receipts and bank records together, since your Canadian bank can ask for them when the money arrives. If you sell after you become a Canadian resident, the gain goes on your Canadian return too, with credit for the Chinese tax paid. For most property you own when you arrive, the CRA treats you as having sold it and bought it back at its fair market value on the day you became a resident, so Canada taxes only the gain after that date; a record of each asset’s value on that day (a valuation or a statement) sets your Canadian cost.

Canadian tax on your Chinese income and assets

Once you are a Canadian resident, Canada taxes your income from China as well as from Canada: interest on Chinese bank deposits, dividends, rent from a property in China and gains on assets you sell. What counts and how to report it is in tax on worldwide income. Where China has also taxed the same income, the foreign tax credit reduces your Canadian tax so the income isn’t fully taxed twice.

The Canada-China tax treaty sets which country can tax each kind of income and caps the tax China withholds on dividends and interest paid to a Canadian resident; tax withheld in China is what the foreign tax credit then offsets.

If the total cost of your foreign investments (Chinese bank deposits, shares, funds, a rental property) is more than $100,000 at any time in the year, you also file Form T1135 with your return. The threshold is the total across all accounts, not per account, and property for your personal use, such as a home you live in, doesn’t count toward it.

Chinese investments after you arrive

Chinese social insurance stays under Chinese rules. Canada and China do have a social security agreement, but it is a limited one: it lets an employee sent to work temporarily in the other country keep contributing only to their home country’s plan, rather than combining periods in both countries to qualify for a pension. How the broader agreements work for pensions is in OAS and GIS for newcomers.

You may read that Chinese funds are “PFICs”. The passive foreign investment company rules are a US tax rule for US citizens and green-card holders, not a Canadian one; they matter only if you are also a US person, and tax for US citizens in Canada explains them.

Building Canadian credit

Canadian lenders can’t see your credit record with the People’s Bank of China credit reference centre (人行征信), so your Canadian file starts empty and builds from your first card or loan. Secured cards and the banks’ newcomer card programs are compared in choosing a first credit card as a newcomer.

Buying a home

The federal ban on non-Canadians buying residential property doesn’t apply to permanent residents or citizens, and some temporary residents qualify for an exemption; under the law as of November 7, 2026 it ends on January 1, 2027, and Budget 2026 proposes extending it for existing homes to January 1, 2029. Who is covered is in the foreign buyer ban. Ontario and British Columbia also charge foreign buyers an extra transfer tax. Lenders treat newcomers differently on credit history and income, which mortgages for newcomers explains, and money from China used for a down payment needs the same source-of-funds records as any large transfer.

Pitfalls specific to moving from China

• Relying on WeChat Pay or Alipay for rent, bills and everyday purchases in Canada.
• Moving money without SAFE paperwork, which can stall a transfer at the Chinese bank.
• Losing track of Chinese assets for T1135: deposits, funds and property in China add up quickly against the threshold.
• Not recording what your Chinese assets were worth on arrival, which sets your Canadian cost, or the sale and tax records that answer source-of-funds questions.

From India

Moving from India to Canada changes your status in both countries at once. Under India’s foreign-exchange law (FEMA) you become a non-resident Indian, which changes the bank accounts and savings schemes you can hold; in Canada you become a tax resident, and the CRA taxes your income from India as well as from Canada.

Before you leave India

• Tell your Indian banks you are moving abroad. Once you become a non-resident, resident savings accounts are redesignated as NRO accounts, and an NRE account can be opened for money you earn abroad.
• Gather records of your savings and assets: bank statements, mutual fund statements and property papers, including what each was worth when you left. Canadian banks can ask where a large deposit came from, and the values on arrival set your Canadian cost (see below).

Your first months in Canada

Like an Aadhaar number, the Social Insurance Number is shared only when required; getting a SIN lists the documents. The rest of the order is on the PR checklist, and temporary residents should see finances on a work permit.

Several big banks let Indian newcomers open an account before landing; offers are compared in newcomer bank accounts.

Your Indian bank accounts: NRE and NRO

Interest that India doesn’t tax, such as NRE interest, is still taxable in Canada once you are a resident. Money in an NRE account can be moved out freely. From an NRO account, the Reserve Bank of India lets a non-resident remit up to US$1 million in a financial year, from the account balance or from the sale of assets, with the bank asking for a declaration and Indian tax forms.

Moving money from India to Canada

While you are still resident in India, the Liberalised Remittance Scheme (LRS) lets an individual send up to US$250,000 a year abroad, and remittances above a yearly threshold can have Tax Collected at Source (TCS), which is credited against your Indian tax. After you become a non-resident, transfers come from your NRE and NRO accounts under the rules above.

Wise, Remitly and Western Union all cover rupees to Canadian dollars, and banks send wires; costs differ mostly in the exchange-rate margin, which how to transfer money to Canada explains. For regular payments the other way, to family in India, see the apps for sending money abroad. Keep the paperwork for large transfers (a property sale, a gift from family), since your Canadian bank or the CRA can ask where the money came from.

Canadian tax on your Indian income

From the day you become a Canadian resident, NRO and NRE interest, Indian dividends, rent from a flat in India and gains on Indian assets all go on your Canadian return; how Canada taxes foreign income explains the reporting. Tax already deducted in India, such as TDS on NRO interest, comes off your Canadian tax through the foreign tax credit.

The Canada-India tax treaty decides which country can tax each kind of income and limits Indian tax on some income paid to Canadian residents. Income you earned in India before you became a Canadian resident isn’t taxed in Canada.

Assets you bring with you get a fresh Canadian cost: for most property owned on arrival (shares, mutual funds, property in India), the CRA treats you as having sold and reacquired it at fair market value on your residency date, so only growth after that date is taxed in Canada. Statements or valuations from that date are what prove the figure.

Indian holdings also count toward Form T1135, the CRA’s foreign property return, once their combined cost passes $100,000 at any point in the year. FDs, demat shares, mutual funds and a rented-out flat all count; a home your family lives in is personal-use property and doesn’t.

Canada’s departure tax applies when you leave Canada, not when you arrive, so it isn’t part of your first years here; the rules for a later move are in the tax checklist for leaving Canada. Indian tax on your assets when you leave India is a question for an Indian chartered accountant.

PPF, EPF, NPS and other Indian savings

How Canada taxes payments from Indian pension schemes and provident funds is in foreign pension income. Canada and India also have a social security agreement, in force since August 1, 2015, that can combine periods under India’s Employees’ Pension Scheme with periods in Canada to help you qualify for a pension in either country; OAS and GIS for newcomers explains how these agreements work.

Indian mutual funds are taxed in Canada like other foreign investments: distributions each year, gains when you sell. You may read that they are “PFICs”: the passive foreign investment company rules are a US tax rule for US citizens and green-card holders, not a Canadian one, and they matter only if you are also a US person (tax for US citizens in Canada).

Building Canadian credit

A CIBIL score doesn’t follow you to Canada, where lenders read Equifax and TransUnion files that start empty. Some card issuers will consider an Indian credit report translated through a service that reads it; that route and the usual starter cards are covered in first credit card options for newcomers.

TFSA, RRSP and FHSA

When each account opens to a new resident is on the PR checklist; buying a home is covered on mortgages for newcomers.

Pitfalls specific to moving from India

• Not telling your Indian bank about your move, so a resident account isn’t redesignated as NRO as FEMA requires.
• Assuming NRE interest is tax-free everywhere: it is exempt in India but taxable in Canada.
• Forgetting that Indian FDs and mutual funds count toward T1135, a threshold that a few accounts can cross together.
• No record of asset values on the day you became resident, which leaves you without a Canadian cost base when you sell.

From the Philippines

For many Filipino newcomers, money in Canada has two jobs from the start: setting up a new life here and supporting family in the Philippines. That makes two things matter more than for most newcomers: what it costs to send money home, and what to do with Philippine benefits such as SSS, PhilHealth and Pag-IBIG.

Before you leave the Philippines

• Settlement funds. Several immigration programs ask you to show a minimum amount of money, which IRCC sets by family size; the current amounts, who is exempt and what counts as proof are on the proof of funds page. Beyond that minimum, the first months bring a rental deposit, winter clothing and other set-up costs before the first paycheque.
• Cash at the border. The Philippines limits how much Philippine currency you can take out without authorization from the Bangko Sentral ng Pilipinas and asks travellers to declare large amounts of foreign currency.
• Records. Bank statements, employment and tax records, and papers for any property you keep in the Philippines. Canadian banks can ask where a large deposit came from.
• Your Philippine bank account. Keeping one account open makes it easier to receive rent, pay family expenses or hold money you send home.

Your first months in Canada

Caregivers and temporary foreign workers start with money on a work permit; permanent residents follow the PR checklist, beginning with a SIN.

Your Philippine credit record doesn’t transfer, so your Canadian file starts with a first card: see newcomer credit cards and newcomer bank accounts.

Sending money home

Remittances to the Philippines can go bank to bank, to a GCash or other e-wallet, or as cash pickup for family without a bank account. On a regular transfer, the cost that adds up is mostly the exchange-rate margin rather than the visible fee: a bank wire usually converts at a wider margin than a transfer service, so comparing the amount in pesos that arrives is the clearest test. The services are compared in the best money transfer apps for sending money abroad.

Money you send to family isn’t a deduction on your Canadian return. Large transfers into Canada (savings, a property sale) are a different job, covered in how to transfer money to Canada.

Remittances compete with building an emergency reserve in Canada: with a few months of expenses in savings, a job gap or a large bill doesn’t interrupt the money sent home.

Philippine benefits: keep or close

Canada and the Philippines have a social security agreement, in force since March 1, 1997. If you haven’t contributed to SSS or GSIS for the minimum period, the Philippines can count your Canada Pension Plan contributions and your years living in Canada after age 18 toward that minimum, and the agreement works the other way for Canadian benefits. How these agreements help with Old Age Security is in OAS and GIS for newcomers.

Canadian tax on Philippine income

Settling in Canada makes you a Canadian tax resident, and rent from a house in the Philippines, interest on peso deposits, dividends and gains all go on your Canadian return from then on (foreign income on a Canadian return). Philippine tax on the same income is offset through the foreign tax credit. An SSS or GSIS pension paid to you here is reported as foreign pension income, which the foreign pension guide covers.

Peso deposits, Philippine stocks, UITFs and a rented-out property also count toward Form T1135, filed in any year their combined cost goes above $100,000. A family home you use yourself is left out.

Canadian benefits

Filing a return every year is what keeps benefit payments coming, even with little income. New residents can apply before their first return, as set out in the first-year steps above.

Where Filipino newcomers settle

Toronto, Winnipeg, Vancouver, Calgary and Edmonton all have established Filipino communities, whose community groups and churches often help newcomers find housing and work. Rent and living costs differ widely between those cities; the cost of living in Canada section compares them.

Saving and investing once you’re settled

Pag-IBIG savings have no direct Canadian equivalent; once remittances are covered, the PR checklist shows when the TFSA, RRSP and FHSA open.

Work permit holders

On a work permit you pay into the same payroll programs as any Canadian employee, and most registered accounts are open to you if you are a Canadian resident for tax purposes. What differs is the end date: the choices that make sense for someone staying for good (an RRSP, a long-term TFSA plan) can work against a temporary foreign worker who leaves in a few years.

Your SIN and your tax residency

Your SIN starts with 9 and expires on the same date as your permit, so each new permit means updating your SIN record; the steps are in getting a SIN. You can start working as soon as you apply for it.

Most accounts below depend on being a Canadian resident for tax purposes, a separate test from your immigration status that turns on your residential ties here: a home, a spouse or common-law partner, or dependants in Canada, plus secondary ties such as Canadian bank accounts and credit cards. The tests are in am I a Canadian tax resident?.

Financial accounts available to work permit holders

CPP and EI on a work permit

Your employer deducts Canada Pension Plan contributions and Employment Insurance premiums from your pay on the same terms as any employee.

• CPP. For 2026, employees contribute 5.95% of earnings between $3,500 and $74,600, and the employer matches it. A CPP retirement pension needs at least one valid contribution, so even a few years of work here earn a small pension you can claim from abroad; see the Canada Pension Plan section.
• EI. Employees pay 1.63% of insurable earnings up to $68,900 in 2026. If you lose your job through no fault of your own and have enough insurable hours, you can claim Employment Insurance like any other worker, as long as you are still authorized to work in Canada.

TFSA rules for temporary residents

Your TFSA room starts on the day you become a resident, and the year you arrive brings the full annual limit; TFSA room for new residents shows how it adds up. A SIN starting with 9 works for opening the account.

The account matters most when you leave. 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. A TFSA is also not part of the deemed sale of your property when you emigrate, so its growth stays sheltered from Canadian tax.

RRSP: when it helps and when it doesn’t

An RRSP contribution saves tax at today’s rate and is taxed when you withdraw it. If you stay and become a permanent resident, that works as it does for anyone. If you leave, withdrawals made after you become a non-resident have 25% withheld (lower under some tax treaties), and the other country may tax them too. Someone expecting to leave within a few years often compares that against a TFSA or an FHSA; the withdrawal rules are in RRSP withdrawals, and a spousal RRSP can help if your spouse will stay in Canada.

Filing taxes on a work permit

As a resident you file a T1 return each year and report your income from all countries from the day you became a resident; tax on worldwide income explains what that covers and how tax paid abroad is credited. If you hold foreign investments with a total cost of more than $100,000 at any time in the year, you also file Form T1135. Your first return follows the newcomer rules in a newcomer’s first tax return.

Benefits on a work permit

Residents can apply for the Canada Groceries and Essentials Benefit as soon as they arrive. The Canada Child Benefit has an extra condition for temporary residents: the CRA says a temporary resident can start receiving it in the 19th month they have lived in Canada, with a valid permit and the other conditions met. The application steps are in how to apply for the CCB.

What changes when your permit ends

If you leave Canada and become a non-resident, your departure-year return covers the part of the year you were resident, and most property you hold is treated as sold at its fair market value on the day you leave (registered plans such as RRSPs and TFSAs are among the exceptions). The full list of what to file is in the tax checklist for leaving Canada.

Social security agreements and CPP

Canada has social security agreements with a number of countries that coordinate pension programs for people who have lived or worked in both, so years in one country can help you qualify for a pension in the other. The agreements differ from country to country; OAS and GIS for newcomers explains how they apply to Old Age Security, and Service Canada’s international benefits page lists the countries.

If you become a permanent resident

Your SIN record changes with your status, and the rest of your setup carries over. The PR checklist above covers what to update, and the citizenship section covers the step after that. If you are in a regulated profession, credential recognition costs and timelines are worth checking with your profession’s regulator before your status changes.

Related pages

• Canada Child Benefit (CCB)
• Mobile Banking Apps in Canada
• How to Get a Passport in Canada
• Cost of Living in Canada
• Guaranteed Income Supplement (GIS)
• RESP Guides for Canadian Families
• Canadian Retirees Living Abroad
• Moving to Another Province in Canada
• Tenant Insurance in Canada
• Laid Off or Fired in Canada