Taxes Associated with Moving out of Canada
Moving out of Canada comes with some significant tax implications for many individuals. When a Canadian ceases to be a resident, there is generally a Any deemed gains must be reported on the person’s final tax return as a resident of Canada. of assets owned by that person at their fair market value (this is known as “departure tax”).
Certain types of property are not subject to the departure tax rules, including:
· Interests in Canadian real estate
· RRSPs, RRIFs and TFSAs
· Entitlements under pension and stock option plans
· Beneficial interests in most personal trusts resident in Canada
It is also possible to elect to defer the payment of tax resulting from the departure tax until the property is actually disposed of. It is therefore very important to obtain proper tax advice when considering becoming a non-resident of Canada.