🦊 Expat Tax Tip #18 – Departure Tax & Capital Gains When Leaving a Country

 

Leaving your home country doesn’t mean leaving tax behind! Many tax offices apply “departure tax” or capital gains rules when you give up residency. These rules often treat you as though you sold certain assets the day before you leave.

• Australia (ATO): If you stop being a tax resident, you may trigger capital gains on assets (other than taxable Australian property). You can choose to pay CGT immediately or defer until you actually sell. ATO – Capital Gains Tax & Residency
• Canada (CRA): When you emigrate, you may be deemed to have disposed of most property at fair market value (the so-called “departure tax”). Certain assets are excluded (like Canadian real estate). CRA – Leaving Canada (Emigrants & Departure Tax)
• U.S. (IRS): Certain U.S. citizens and long-term residents who expatriate may face an “exit tax” on worldwide assets if net worth or tax liability thresholds are met. IRS – Expatriation Tax (Exit Tax)

📘 Want help navigating residency exits and cross-border planning? Check out my Australia Expat Tax Guide and Canada Expat Tax Guide.

👉 Tip: Keep records of asset values on the day you change residency. This documentation can save you headaches (and penalties) later.

🔗 Please refer to this page to see all my other expat tax tips.

Tags: Expat Taxes, Departure Tax, Capital Gains Tax, Exit Tax, Tax Residency, ATO, CRA, IRS, Emigration, Cross-Border Taxes