The short answer: Do not close registered plans simply because you are leaving. First ask each institution whether it can serve residents of the destination, stop TFSA contributions once non-residence begins, and model Canadian withholding alongside destination tax before withdrawing. Keep an account-by-account record of cost, tax status, beneficiaries and access.
Ask the provider what will still work from your destination
Canadian tax law may allow an account to continue while a bank, broker or fund restricts trading, new purchases, advice or certain products for a resident of another country. Policies vary by institution and destination. Ask in writing what happens to existing holdings, cash, scheduled contributions, withdrawals, statements and identity checks.
Update residence and tax information honestly. Financial institutions have tax-reporting duties and may request foreign tax identification numbers or self-certification. Keep two reliable authentication routes and download statements before cancelling a Canadian phone plan.
- List the owner, account type, provider, balance, investments and adjusted cost base where relevant.
- Ask whether trading, transfers, withdrawals and beneficiary changes remain available from the destination.
- Record fees, currency-conversion costs, withholding and the destination's tax treatment.
- Check successor-holder, beneficiary and estate documents after the move changes family residence.
Keep the RRSP or RRIF decision separate from the withdrawal decision
An RRSP or RRIF is excluded from the T1161 property list and is not normally subject to departure tax merely because the holder leaves. Payments to a non-resident are reported on an NR4 and usually face Part XIII withholding. The standard rate is commonly 25%, although a treaty may reduce the rate for an eligible payment.
A destination can tax the withdrawal even when Canada withholds at source. Large lump sums and periodic pension-style payments may receive different treaty treatment. Compare leaving funds invested, converting an RRSP to a RRIF at the required time and taking staged withdrawals only after both countries' rules are understood.
Worth knowing: Non-residents cannot use RRSP funds through the Home Buyers' Plan or Lifelong Learning Plan. A normal taxable withdrawal is different from those resident-only programmes.
Stop TFSA contributions when non-residence begins
A non-resident may keep an existing TFSA, and Canada does not tax its investment income or withdrawals. However, the new country may treat the account as an ordinary taxable investment account. Keep records of market value, transactions and income so destination reporting can be completed even when no Canadian slip is produced.
A non-resident contribution is generally taxed at 1% for each month it remains in the account. A person does not gain new annual TFSA room for a full calendar year of non-residence, although a part-year resident receives that year's limit. A withdrawal can be made, but the amount cannot be recontributed tax-free until the holder is resident again and has room.
Review education and first-home accounts before children move
An RESP subscriber does not have to be resident, but a plan generally cannot accept a contribution for a beneficiary who is non-resident. Eligibility for education assistance payments, grants and the treatment of a school abroad require provider confirmation. Ask for the plan's rules before assuming the account must close or can keep receiving grants.
For an FHSA, a qualifying tax-free withdrawal requires the individual to be resident in Canada throughout the period beginning with the withdrawal and ending when the qualifying home is acquired or built. A non-resident can make a taxable withdrawal, and a direct transfer to an RRSP or RRIF may be possible under the plan rules. Get advice before moving or withdrawing.
Protect the cost basis of non-registered investments
Non-registered shares, funds, business interests and other investments can fall within the deemed-disposition rules when residence ends. Save acquisition records, adjustments, distributions, currency conversions and a fair-market-value statement for the departure date. The destination may start with a different basis, so the same later sale can produce a different gain in each country.
After departure, Canadian dividends generally face non-resident withholding, while arm's-length interest is often exempt from Canadian withholding. The destination may tax both. Check whether the broker can retain the assets, which markets remain available and how foreign tax credits will be documented.
A practical account review before leaving Canada
The account can be legal to keep but impractical or inefficient from a particular destination. Confirm both tax and provider rules.
| Account | Canadian starting point | What to confirm before moving |
|---|---|---|
| RRSP / RRIF | Usually can remain; payments face non-resident rules | Provider access, treaty rate, withdrawal form and destination tax |
| TFSA | Can remain; non-resident contributions can attract 1% monthly tax | Stop contributions, preserve records and check destination tax |
| RESP | Subscriber may be abroad; beneficiary residence matters | Contributions, grants, eligible school and payment treatment |
| FHSA | Non-resident withdrawal is not a qualifying withdrawal | Transfer, taxable withdrawal, closure timing and destination tax |
| Non-registered portfolio | May be included in departure-tax calculations | Fair value, adjusted cost base, provider access and withholding |
| Employer shares or options | Plan and departure rules can be specialised | Vesting, exercise, sourcing, withholding and destination treatment |
Put the work in a sensible order
Six to twelve months before
Inventory all plans, owners, beneficiaries, cost records and provider restrictions.
Before non-residence begins
Model departure tax and planned withdrawals, then stop automatic contributions that will no longer qualify.
When the address changes
Give providers genuine residence and tax details and test overseas authentication.
Each year abroad
Reconcile NR4 slips, destination reporting, contribution room and estate nominations.