FAQ - Canada - 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.