Say goodbye to Canadian taxes forever? The secret is to leave Canada.
- Toronto CPA Service
- 6 days ago
- 3 min read
Did you know that you can legally stop paying a single penny of taxes to Canada without having to hide money, dig your own backyard, or worry about the CRA raiding your home?
Sounds like a scam? No, this is a privilege granted to you by Canadian tax law —as long as you sever your residency ties and become a non-tax resident, you won't be taxed on any money you earn worldwide in Canada.

⚠️ But don't get too excited, it isn't as easy as you think to leave Canada.
The CRA might act like a jealous ex :
Watch your entry and exit records
Check your bank account
Let's see if you're still "clinging to the past".
You must follow the procedures cleanly and efficiently.
Here are a few steps to legally sever your Canadian tax status!
✅Sever main residential connections
CRA, please refer to these two points first:
❌ Do you own or rent a house in Canada?
❌ Your spouse or minor children are still in Canada
👉 Must: Sell the house/rent it out long-term + move with family
It is difficult to break tax status as long as there are still family members in Canada.
✅Cut or reduce secondary contacts
These will also be used as evidence that "you still live in Canada":
Canadian Health Card (MSP / OHIP, etc.)
Driver's license or provincial ID
Local bank accounts, credit cards
Club and association members
Not all need to be cancelled, but the fewer the better.
✅Establish “real residency” in the new country
Simply leaving Canada isn't enough; you must "actually live in another country."
Buying a house or renting long-term
Obtain a residence visa or permanent residency permit
Register local water and electricity, tax system
Staying for more than 183 days a year
Especially important: If the country you are going to does not have a tax treaty with Canada (such as the UAE and most Caribbean island nations), this step is even more crucial evidence.
✅ Submit the "Departure Tax Form" - Learn about "Departure Tax"
In the year you leave Canada, you must file a final tax return (Departure Return):
Please specify the departure date.
Only declare global income up to the day of departure.
I am formally informing the CRA that I am now a non-tax resident.
After that, in Canada, only locally sourced income will be taxed (such as rent, RRSP withdrawals), which is usually withheld directly by banks or institutions.
Canada has a practice that many people are unaware of: when you leave, it's considered that you've sold most of your assets at market price (Deemed Disposition).
👉 Which assets are considered "deemed sold" and may trigger capital gains tax?
Stocks, cryptocurrencies, and collectibles in unregistered accounts
Private company shares
Overseas investment properties
Items that will not be considered as sold:
Canadian real estate
RRSP / RRIF / TFSA (these are taxed when you withdraw money later)
✅Final work
Notify banks, securities firms, and investment platforms: You are now a non-tax resident.
Change all postal addresses to the new country
Cancel or switch provincial insurance
Note: Form NR73 is a request for the CRA to determine your tax status. It is not mandatory to file unless your situation is very unclear or you anticipate a challenge from the CRA.




Comments