If you’re a Canadian living abroad (or planning to), figuring out your residency status with the CRA is essential. It determines what income you must report, and whether you’re taxed on global earnings or just Canadian-source.
What Is Tax Residency in Canada?
CRA looks at residency status using several categories: factual resident, deemed resident, non-resident, etc.
Important factors:
Residential ties — home, family, spouses, dependents, bank accounts, insurance.
Physical presence — the 183-day rule is often used.
Intentions — do you intend to return, maintain or sever ties?
Even if you’re outside Canada most of the year, you may still be a resident if your ties are strong.
Why It Matters for Canadians Abroad
Canadians who are residents for tax purposes must declare worldwide income to the CRA.
Non-residents often only report Canadian-source income.
Getting the classification wrong can lead to paying more tax, missed credits or treaty relief, or unexpected penalty exposure.
Common Mistakes Canadians Make
Assuming leaving the country equals giving up residency.
Closing bank accounts and thinking that severs ties (but it may not).
Ignoring treaties that affect residency.
Not keeping records (bank, property, travel) that support your residency status.
Quick Canadian Tips
Document your residential ties clearly.
Keep track of how many days spent in Canada vs abroad.
If needed, apply for CRA’s opinion (Form NR73) to clarify your status.
Watch the video version of this tip: https://youtu.be/SyjpJQxPH8w
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