How to Give Up Canadian Residency

Giving up Canadian residency means that you sever all ties with Canada and begin to live in another country. Residency in Canada is closely tied with tax obligations. Therefore, severing these tax obligations is an essential step in giving up residency. If you have properties and income in Canada, the process of giving up residency can be a complicated one. It is important to consult with a lawyer to help you understand the process and to avoid paying taxes once you are no longer a resident.

Instructions

    • 1

      Obtain form NR73 Determination of Residency Status (Leaving Canada) from the Canada Revenue Agency (CRA) website. Fill in the form to provide the CRA with information about your residency status for tax purposes. Submit the form to the CRA to obtain an official determination of your residency and tax status (see "References").

    • 2

      File the Canadian departure tax return with the CRA. Obtain tax return forms from the CRA and complete them. Download the form T1161 -- List of Properties by an Emigrant of Canada from the CRA website and list all your taxable properties within Canada. Submit the tax return forms and the T1161 form to the CRA (see "References").

    • 3

      Begin severing all personal and social ties in Canada to stop being a factual resident of Canada and subject to Canadian taxes. Close all Canadian bank accounts and inform the bank that you are changing residence. Inform all income remitters such as securities brokers about the change in residence so that tax on these incomes may be withheld (see "References").

    • 4

      Dispose all your property as a means of severing residential ties with Canada. Sever residential ties by selling your home or leasing it to someone inside the country. Note that the income you receive from disposing off your property will be subject to Canadian taxation (see "References").

    • 5

      Notify the CRA with the date that you are leaving the country. Inform them about the date of leaving especially if you are making payments to offset taxes such as the goods and services tax/harmonized sales tax credit, Canada Child Tax Benefit and Universal Child Care Benefit payments (see "References").

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