Confused about filing taxes while living outside Canada? This guide is for you. It covers everything from tax residency and departure tax to Canadian income sources and exemptions. Whether you’re renting property in Canada or receiving pensions, it clarifies when filing is required. Rely on Expatriate & Non-Resident Tax Services in Canada to help you file correctly, claim eligible credits, and stay tax-compliant as a non-resident Canadian.
About taxexpatriate
At Expatriate Tax Professionals, we are a team of seasoned accounting experts with over 20 years of experience in providing specialized tax advice to expatriates, non-residents, and businesses. Our mission is to guide individuals and companies through the complexities of the Canadian tax system, ensuring optimal tax strategies that minimize liabilities and maximize returns. Whether you're navigating the unique tax challenges of living abroad or managing cross-border business operations, we develop tailored solutions to help you achieve your financial goals. Let us handle the complexities of your taxes so you can focus on what matters most—your business and personal success.
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https://expatriatetax.ca/expatriate-tax-services/
Non-Resident Tax Filing: A Simple Guide
for Canadians Living Outside Canada
Are you a Canadian living outside Canada and wondering if you still need to file taxes in
Canada? Understanding Canadian tax rules while living abroad can be confusing. The main
thing to know is that being a Canadian citizen does not always mean you must file a tax
return in Canada. Your tax responsibilities depend on whether you have strong ties to
Canada or earn money from Canadian sources.
This guide will explain when you need to file, what income counts, and how to find out your
tax residency status. If you’re not sure about your situation, using professional expatriate &
non-resident tax services in Canada can help you get the right advice.
What Is Tax Residency and Why Does It Matter?
Tax residency is different from citizenship. It decides if you need to report all your income to
the Canada Revenue Agency (CRA) and file a Canadian tax return.
Just because you are a Canadian citizen doesn’t mean you owe taxes or have to file a
return. But if you are a non-resident and earn income from Canada, you may need to file.
Types of Residency Status for Tax Purposes
The CRA divides people into four groups:
● Resident: You have strong ties to Canada, like a home, spouse, or children, and
must pay tax on all your income worldwide.
● Deemed Resident: You don’t have strong ties but live in Canada for 183 days or
more in a year.
● Non-Resident: You live outside Canada most of the year and have no strong ties.
You pay tax only on income from Canada.
● Deemed Non-Resident: You are usually a resident but are considered a non-
resident because of a tax agreement with another country.
What Are Significant Residential Ties?
Here are some examples of strong ties to Canada:
● A home in Canada
● Your spouse or common-law partner lives in Canada
● Your dependents (children) live in Canada
Other smaller ties include:
● Personal property in Canada
● Canadian bank accounts
● A driver’s license from a Canadian province
● Provincial health insurance
Canadians Living Abroad with No Ties to Canada
If you:
● Sold your Canadian home and don’t own property here
● Your family lives outside Canada
● You don’t have a Canadian bank account, driver’s license, or health coverage
● You spend very little or no time in Canada
You are probably a non-resident for tax purposes and usually don’t need to file a Canadian
tax return — unless you have income from Canada.
When Must Non-Residents File a Canadian Tax Return?
You must file if you earn income from Canada, such as:
● Employment income in Canada: If you worked in Canada at all during the year
● Business income: If you run a business or partnership in Canada
●
Income from Canadian real estate: Rental income, or if you sold Canadian property
● Capital gains: Profit from selling Canadian property or other taxable assets
● Canadian pensions or investments: You might need to file to claim refunds or
credits
When Do You Not Need to File?
If you live outside Canada, have no Canadian income, or strong ties, you usually don’t need
to file a Canadian tax return. Your income earned in other countries is not taxed in Canada.
How to Confirm Your Residency Status
You can use the CRA’s forms NR74 or NR73 to ask for an official residency decision. It’s
also a good idea to talk to a Canadian tax expert for advice about your situation.
What Is Departure Tax?
When you leave Canada and become a non-resident, you may owe a “departure tax.” This
means the CRA treats some of your assets as if you sold them at their market value before
you left, which could mean paying tax on the increase in value.
Other Important Things to Know
● Provincial Health Care: You may lose your health coverage when you leave
Canada.
● Claiming Refunds or Benefits: Sometimes, filing a return helps you get GST/HST
credits or tax refunds.
● Reporting Foreign Income: If you’re a resident, you report all income worldwide.
Non-residents only report Canadian income.
Summary: When Do Canadians Living Abroad Need to
File Canadian Taxes?
Situation
Must File Canadian Return?
A Canadian citizen with no ties or Canadian income
No
Canadian citizen with Canadian employment income
Yes
Canadian citizen with Canadian rental or business
income
Yes
A Canadian citizen who sold Canadian property
Yes
A Canadian citizen receiving a Canadian pension or
annuities
Usually yes
A Canadian citizen with strong ties to Canada
Yes (report worldwide income)
http://www.expatriatetax.ca/
mailto:eaton@expatriatetax.ca
Final Thoughts
If you’re a Canadian living abroad with no strong ties and no Canadian income, you usually
do not need to file a Canadian tax return. But tax rules can be complicated, and every
person’s situation is different.
To avoid mistakes, use the CRA’s residency forms or speak with professionals who
specialize in expatriate & non-resident tax services in Canada. Getting the right advice will
help you stay on the right side of the law and avoid paying more tax than you need to.
Staying informed and planning will give you peace of mind while living outside Canada.
Contact Information
Website
Phone
Location
www.expatriatetax.ca
(403) 383-2286
eaton@expatriatetax.ca Suite 2000, 125 9 Avenue
SE, Calgary, AB T2G 0P6