If you’re a Canadian expat, your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) stay in Canada — but how they’re taxed depends on your residency status and where you move.
👉 Official CRA info on RRSPs and TFSAs abroad:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans.html
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html
💡 Key Points for Expats
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Keep your RRSP active: You can keep and even contribute if you still have Canadian earned income and contribution room.
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TFSA limitations: Once you become a non-resident, you can’t accumulate new TFSA room — and contributions made while abroad may face a 1% monthly penalty.
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Withholding on withdrawals: RRSP or RRIF withdrawals by non-residents are usually subject to a 25% withholding tax (often reduced under a tax treaty).
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CPP & OAS: You may still receive Canada Pension Plan (CPP) or Old Age Security (OAS) abroad, but tax treaties determine if they’re taxed in your new country.
⚖️ Residency & Tax Treatment
- Canadian tax resident:
You continue to report worldwide income, including investment gains inside your RRSP or TFSA. - Non-resident:
CRA withholds tax on certain withdrawals and stops TFSA contribution room accumulation. - Treaty impact:
Tax treaties with countries like Australia, UK, and the U.S. may reduce the withholding rate on RRSP withdrawals.
🔗 Learn more:
https://xpatwealth.com/expat-tax-residency-canada/
https://xpatwealth.com/canada-expat-tax-guide/
🚫 Common Mistakes to Avoid
- Contributing to a TFSA while living overseas.
- Failing to file NR73 (Determination of Residency Status) when leaving Canada.
- Forgetting to claim treaty relief to lower withholding tax.
- Overlooking that RRSP withdrawals abroad may also be taxable in your new country.
🦊 Felix’s Quick Tips
🦊 Keep a Canadian mailing address on file with your bank and CRA for smoother correspondence.
🦊 Check if your new country taxes RRSP withdrawals — coordinate timing to avoid double taxation.
🦊 Don’t collapse your RRSP immediately after leaving — tax deferral may be more valuable.
🦊 File your departure return properly to reset residency and avoid penalties.
🧭 See Also
Expat Tax Residency Explained → https://xpatwealth.com/expat-tax-residency-canada/
Departure Tax Rules → https://xpatwealth.com/expat-departure-tax/
CGT on Property Abroad → https://xpatwealth.com/canada-expat-cgt-property-sale/
Free Expat Tax Resources → https://xpatwealth.com/free-resources/
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