Canada
Canada taxes residents on worldwide income. Severing Canadian tax residency requires cutting 'residential ties' — but there's a departure tax on unrealised gains.
Tax situation for Canadians
- - Worldwide taxation for residents; departure tax (deemed disposition) on emigration
- - Residential ties test: home, spouse, dependents, bank accounts, driver's licence all count
- - Tax treaties with 90+ countries provide relief from double taxation
- - OAS/CPP pension payable worldwide with a 25% non-resident withholding tax (reducible by treaty)
- - No FATCA equivalent, but CRA has information-sharing agreements
Exit tax & departure rules
Canada imposes a departure tax — deemed disposition of all assets at fair market value on the date you become non-resident. Capital gains tax applies on the deemed gain. RRSPs can be retained but subject to withholding on withdrawal. Principal residence exemption still applies.
Free citizenship by ancestry
Canadians may qualify for citizenship in these countries through ancestry — often free or near-free:
Top destinations for Canadians
Portugal
D7 visa, NHR 2.0, large Canadian expat community, affordable
Panama
Friendly Nations Visa (Canada qualifies), territorial tax, warm
United Arab Emirates
0% income tax, growing Canadian community
Mexico
Proximity, NAFTA familiarity, low cost of living, temp resident visa
Costa Rica
Pensionado/Rentista, close to North America, affordable healthcare
Malta
English-speaking EU, Global Residence Programme
Tax situation for Canadians
Canada's departure tax makes leaving expensive if you have significant unrealised capital gains. Planning the timing of departure around asset sales is critical. The good news: once non-resident, Canada only taxes Canadian-source income.
Best countries to move to from Canada
Canadians moving abroad are typically driven by climate (escaping winters), cost of living, or proximity to family while reducing tax burden. Mexico and Costa Rica are the proximity picks; Portugal and Spain for Europe.
Second passport options for Canadians
Canadian passport is strong (#7 globally). Second passport seekers typically want EU access or a zero-tax jurisdiction. Caribbean CBI and EU ancestry routes are most popular.
Remote work & digital nomad visas for Canadians
Canadian non-residents can work remotely tax-free from many countries using digital nomad visas. Portugal D8, Spain, and Costa Rica are popular. Key risk: maintaining too many ties to Canada and failing to sever residency.
Retiring abroad from Canada
OAS and CPP are payable worldwide but subject to 25% withholding (reduced by treaty). Popular retirement destinations: Mexico, Costa Rica, Portugal, Panama — all with low cost of living and retirement-specific visas.
Renouncing Canadian citizenship
Rarely done since ceasing tax residency is sufficient to stop Canadian worldwide taxation. Mainly relevant for dual citizens or those seeking citizenship in countries prohibiting dual nationality.
Renunciation note: Renunciation of Canadian citizenship requires being a citizen of another country. No exit tax beyond the departure tax already triggered on ceasing residency.