Taxes for expats in Canada

Cheryl Moderator

Member since 15 October 2018

CherylModerator21 May 2025 05:32:50

14940

Hello everyone,

When settling in and living in Canada, you will also need to navigate the local tax system. In order to help newcomers and expats ease their tax-related experience, we would like to invite you to share your experience.

What are the taxes applicable to expats in Canada?

Have there been any recent changes in tax regulations that expats should know about?

Are there any local tax incentives or agreements with your home country?

Have you come across any unexpected or unusual local tax?

What do you wish you had known earlier about taxes in Canada?

Share your insights and experience.

Thank you for your contribution.

Cheryl
Expat.com Team

msebarrett New member

Member since 14 November 2025

msebarrettNew member14 November 2025 03:21:00

I am wondering about being a dual citizen (Canada - US). I have only lived in the US, except visits to family in summers as a kid. I have never had any financial ties to Canada - real estate, investments, bank accounts, pensions, or employment. I actually only learned I qualify to be Canadian citizen this past summer - my mother is Canadian. I obtained my passport (perhaps proudest day of my entire life). .

My question is a tax question. As a new dual citizen, am I supposed to be filing income taxes in Canada to CRV - or only if I relocate to Canada from US?

Very Curious!!!

armin31 Contributor

Member since 19 September 2022

armin31Contributor23 November 2025 19:48:09

120

@msebarrett

Hello,

Please NOTE: I am not consulting you on taxes, I just share what I know or rather knew (as I have left Canada).

You seem to understand the things that are relevant for determining the answer to your question.

What kind of financial, social, family emotional ties do you have to Canada?

You do not seem to have any of these (execept family?). But in any case family ties are most likely the weakest indication of residency because they are not chosen.

More dangerous may be social ties (such as club memberships) because you maintain them by choice. Bank accounts could be viewed in a similar way. But nothing is really definite.

The Minister of Revenue (represented by the CRA – Canada Revenue Agency) can deem you to be a resident and then you pay taxes on your world income. This deemed residency is something that is very hard to forecast and just as hard to deal with.

So long as you have virtually no stakes in Canada, you should be ok. (Again I am not giving tax advise, you could consult a CPA CA if you are worried enough to put some money into the answer.)

The question that would worry me most (from what I read in your post) would be why you applied for Canadian citizenship. Could it be construed that your are looking to moving there, to make it your center of life? But then normally you would be only taxable in Canada from the date you moved there or started other significant activity there. But nevertheless I would stay away from nbank accounts until shortly before I move there and all other ties (such as club memberships) until I have moved.

TO ALL: If there are any practicing CPA CAs here perhaps you may want to help with this question.

All the best!

Armin