Can I collect CPP and OAS while living outside Canada?

Yes, CPP can be paid anywhere in the world. OAS can be paid abroad if you lived in Canada for at least 20 years after age 18. Otherwise OAS stops after 6 months outside Canada.

Do Canadian retirees pay tax if they live abroad?

It depends on residency status. Non-residents pay 25% withholding on Canadian pensions (may be reduced by tax treaty). Factual residents may still be taxed on worldwide income by Canada.

Can I keep my provincial health insurance if I retire abroad?

Generally no. Provincial health coverage requires physical presence in the province (typically 6 months/year minimum). Extended absences cause loss of coverage. Private insurance needed abroad.

Canadian Retirees Living Abroad 2026 | Tax and Benefits Guide

Canadian Retirees Abroad: Overview

Key Considerations

Factor	Impact
Tax residency	Where you pay tax
Pensions	CPP, OAS, employer
Health care	Provincial coverage rules
Banking	Account access
Benefits	Various Canadian benefits

Tax Residency Status

Determining Residency

Status	Tax Situation
Resident	Tax on worldwide income
Non-resident	Tax only on Canadian source
Factual resident	Still may be Canadian resident

Ties That Keep You Resident

Strong Ties	Impact
Dwelling in Canada	Home, rental property
Spouse/dependents in Canada	Strong tie
Personal property	Cars, furniture

Secondary Ties	Consider
Canadian driver’s license	Secondary
Bank accounts	Secondary
Provincial health card	Secondary
Club memberships	Secondary

Becoming Non-Resident

To Break Residency	Actions
Sell/rent home	Remove dwelling
Move family	Everyone leaves
Close accounts	Or minimize
Establish elsewhere	New residence
File departure	Inform CRA

Departure Tax

When Leaving	May Trigger
Deemed disposition	On certain property
Capital gains	On investments
Tax on departure	Plan carefully
Exemptions	Principal residence

Canadian Pensions Abroad

CPP (Canada Pension Plan)

Rule	Details
Paid anywhere	In the world
Taxation	Non-resident withholding
Tax treaty	May reduce rate
Direct deposit	Many countries
Currency	CAD or local

OAS (Old Age Security)

Requirement	Details
20+ years in Canada	After age 18
Paid abroad	If 20+ years
Under 20 years	Stops after 6 months abroad
GIS	Not paid outside Canada

OAS Abroad Rules

Years in Canada	OAS Abroad
20+ years	Continues indefinitely
10-20 years	May stop after 6 months
Under 10 years	Stops after 6 months

Employer Pensions

Type	Treatment Abroad
Defined benefit	Usually paid anywhere
RRIF/RRSP	Withdrawals worldwide
Provincial (HOOPP, etc.)	Usually paid anywhere

Tax on Pensions

Non-Resident Withholding

Pension Type	Default Rate
CPP	25%
OAS	25%
RRSP/RRIF	25%
Employer pension	25%

Tax Treaty Reductions

Country	Typical Rate
USA	15% periodic pension
UK	15% or less
France	Various
Australia	15%

Check specific treaty provisions.

Form NR5

Purpose	Details
Reduce withholding	At source
Apply to CRA	Before payments
Treaty benefit	If applicable

Health Care

Provincial Coverage Rules

Province	Presence Required
Ontario	153 days/year minimum
BC	6 months/year
Alberta	183 days/year
Most others	~6 months

Losing Coverage

If Abroad	Result
>6 months	Lose provincial health
Re-establish	When return
May have waiting	To restore

Insurance Options

Need	Option
While abroad	International health insurance
Emergency only	Travel medical
Comprehensive	Expat coverage
In destination	Local insurance

Popular Destinations Insurance

Country	Healthcare Options
USA	Very expensive, must insure
Mexico	Affordable private care
Costa Rica	CAJA (public) possible
Portugal	SNS if resident
Spain	Public if resident

Banking and Finance

Canadian Accounts

As Non-Resident	Options
Can keep accounts	Most banks allow
Some limitations	May apply
Non-resident designation	Required
Interest withholding	25% (or treaty rate)

TFSA

Non-Resident	Result
Cannot contribute	After departure
Can keep	Existing balance
Growth	No new contribution room
Withdrawals	Can still make

RRSP/RRIF

Non-Resident	Result
Keep RRSP	Yes
Contribute	No (usually no room)
RRIF withdrawals	25% withholding
Collapse?	Consider timing

Popular Destinations

Tax Treaties Matter

Country	Treaty Status
USA	Comprehensive
UK	Comprehensive
Mexico	Yes
Portugal	Yes
Costa Rica	No comprehensive treaty
Panama	Recent treaty

Cost of Living

Destination	Relative Cost
USA (varies)	Similar to higher
Mexico	Lower
Portugal	Lower to similar
Costa Rica	Lower
Southeast Asia	Much lower

Maintaining Some Presence

Snowbird Strategy

Approach	Details
Spend winters abroad	4-5 months
Return to Canada	Rest of year
Maintain residency	All benefits
US 182-day rule	If in US

US Snowbirds Specifically

Rule	Requirement
B-2 visa	6 months max
182-day rule	For US tax purposes
Substantial presence	Calculate carefully
Form 8840	Closer connection

What Stops

Benefit	Abroad Status
GIS	Stops outside Canada
Provincial benefits	Stop
Some credits	Stop

What Continues

Benefit	If Eligible
CPP	Yes
OAS	With 20+ years
QPP	Yes (Quebec pension)

Estate Planning

Considerations

Factor	Planning
Dual country assets	Coordinate
Will validity	In each country
Probate	May be in both
Tax on death	Where resident

Canadian vs. Foreign Will

Recommendation	Details
Separate wills	For each country
Coordinate	Don’t conflict
Professional help	Essential

Coming Back to Canada

Re-Establishing Residency

Step	Action
Return to live	In Canada
Re-establish ties	Home, etc.
Health coverage	Apply/waiting period
Update CRA	Become resident

TFSA Upon Return

Rule	Details
Room resumes	Going forward
Past years overseas	No room accumulated
Contribute	New room + any prior

Checklist Before Leaving

Financial Planning

Task	Done
Determine residency status	☐
Calculate departure tax	☐
Understand pension taxation	☐
Review tax treaty	☐
Plan RRSP/RRIF	☐
Arrange banking	☐

Benefits and Healthcare

Task	Done
Confirm OAS eligibility abroad	☐
Arrange health insurance	☐
Notify provincial health	☐
Set up pension payments	☐

Estate and Legal

Task	Done
Update will	☐
Consider foreign will	☐
Power of attorney	☐
Inform financial institutions	☐