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FAQ - Canada - Leaving Canada

Published on October 14, 2014

Leaving Canada


1 – I am leaving Canada, will I be subject to an expatriation tax ?

The expatriation tax is applied to individuals who decide to leave Canada to settle in another country and who sever their residential ties with Canada.

When a person leaves Canada, they should attach form T1161 to their tax return if they ceased to be a resident of Canada in the year and the fair market value of all the properties they owned when they left Canada was more than $25,000, not including the following properties:

  • cash (including bank deposits);
  • pension plans, annuities, registered retirement savings plans, pooled registered pension plans, registered retirement income funds, registered education savings plans, registered disability savings plans, tax-free savings accounts, retirement compensation arrangements, employee benefit plans, employee life and health trusts, and certain other deferred benefit plans;
  • property you owned when you last became a resident of Canada, or property you inherited after you last became a resident of Canada, if you were a resident of Canada for 60 months or less during the 10-year period before you emigrated and the property is not taxable Canadian property; and
  • any item of personal-use property (such as your household effects, clothing, cars, collectibles) that has a fair market value of less than $10,000.

    For more information, please visit the Canadian tax administration website here.


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