Leaving Canada – A Smart Financial Planning Guide for Canadians Moving Abroad

Introduction

Leaving Canada with Clarity
Whether you’re moving abroad for work, family, or lifestyle, becoming an expat changes the way your finances need to work. From taxes and investments to insurance and cash flow, this guide ensures your exit is structured, compliant, and strategically sound.

Establishing Non-Residency: Step One

Declare Non-Residency Correctly
Establishing non-residency for tax purposes involves more than just leaving. You must sever key ties and may need to complete the NR73 form. Getting professional advice is critical to avoid CRA scrutiny.

Plan for Departure Tax
If you’re leaving with appreciated assets, you may owe departure tax on unrealized gains. A financial planner can help you manage, defer, or restructure your holdings before triggering this.

Restructuring Your Investments

Interest Income

Review Canadian Accounts

TFSAs and RESPs become tax-inefficient for non-residents. RRSPs can still grow tax-deferred. Offshore or internationally compliant investment platforms may offer better long-term options.

Avoid Double Taxation

Understand the tax treaty (if any) between Canada and your new country. Without proper structuring, you could face tax exposure on the same income in two jurisdictions.

Banking, Insurance & Protection Abroad

Maintain Essential Canadian Accounts
Retain at least one Canadian account for transactions, but consider international banking solutions for better access and currency management.

Check Your Insurance Portability
Not all Canadian insurance policies remain valid once you reside abroad. Evaluate your coverage and consider transitioning to global insurance.

Supporting Family or Maintaining Canadian Ties

Education Savings or Gifting

If supporting children or family in Canada, structure transfers and education funding tax-efficiently to avoid unintentional tax liabilities.

Work with a Cross-Border Planner Before You Leave

Leaving Canada is a turning point. A cross-border financial planner helps ensure your finances are structured to grow and protect your wealth while staying compliant internationally.

Consider Income Splitting

If applicable, consider income splitting strategies with a lower-income spouse or family member to reduce the overall family tax burden.

CONCLUSION

Expatriation doesn’t mean breaking ties with Canada—it means transforming how your financial life is managed. With expert planning, you can live globally and thrive financially.

Remember, it’s always advisable to consult with a financial advisor or tax professional when dealing with complex matters like investment income tax planning.

🌍 Planning Your Exit from Canada?
Let Bassem Fawzy, an accredited Canadian Financial Planner and cross-border wealth expert, help you structure your move with clarity and confidence. Book your free consultation here.