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. This page compares the two; the first steps after landing are in money in Canada for newcomers.
What stays the same
These programs treat a permanent resident and a citizen who live in Canada the same way:
| Program | What it depends on |
|---|---|
| Canada Pension Plan | Your contributions from work in Canada |
| Old Age Security and the Guaranteed Income Supplement | Years of residence in Canada after age 18 (and, for the GIS, income) |
| TFSA, RRSP and FHSA | Tax residency, age and earned income (TFSA room) |
| RESP grants (CESG) | The child’s residence and SIN |
| Canada Child Benefit | Residence and status; permanent residents and citizens both qualify |
| Canada Groceries and Essentials Benefit and the Canada Workers Benefit | Residence and income |
| Provincial health coverage | Residence in the province |
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
| Cost | Amount |
|---|---|
| Citizenship application, adult (18 and over) | $653 (includes the processing fee and the right of citizenship fee) |
| Citizenship application, minor (under 18) | $100 |
| Language test, if you don’t already have accepted proof | Set by the test provider |
| Canadian passport after the ceremony | See what a Canadian passport 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.
If you are earlier in the process, the new permanent resident financial checklist covers the setup that comes before citizenship.