Investing

Non-tax resident status: bank, RRSP and TFSA?

  • Last Updated:
  • Mar 4th, 2018 10:25 pm
[OP]
Sr. Member
Jun 5, 2015
969 posts
19 upvotes
Toronto, ON

Non-tax resident status: bank, RRSP and TFSA?

A coworker of mine got a job in one of those offshore locations and is moving soon - he said he’s going to let an agency rent out his condo and claim non-tax status , that will be a lot of money saved .... but he said he’s going to keep his bank account to collect rent of his condo - I thought to claim non- tax status one can’t have any property or ties in Canada, is it true you can still have a bank account ? How about RRSP and TFSA? Do you have to empty your RRSP and TFSA? And stock brokerage account?
2 replies
Deal Addict
User avatar
Dec 8, 2010
2561 posts
990 upvotes
There are a number of things in determining tax residency.

Primary residence is the first. If you don't have a place to live in Canada (having a rental is not a place you can stay), that's a big 'tie' you don't have. Owning rental property is fine.

Having a Canadian bank account is fine. "Getting rent" is a perfectly valid reason to still keep it. They should lose their provincial health care, though. Switch driving license, too.

Having a TFSA is fine, but may be taxed in the overseas location. Can't contribute to it, though. RRSP the same; can't put money in, but less likely for it to be taxed overseas as most places accept retirement accounts.

Brokerage no, but obviously they would have to update everything.The CRA will require tax to be withheld on any dividends on Canadian stocks. It'd be better to be with a brokerage in the country they are going to.
[OP]
Sr. Member
Jun 5, 2015
969 posts
19 upvotes
Toronto, ON
Thanks, that’s very informative-but as to brockages : what about RRSP / TFSA account with questrade or TD? Same as regular RRSP and TFSA, just not contributing would be ok, right ?

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