Picture this. You retire abroad in a beautiful new country, collect your CPP and OAS, and pay zero tax on it. Sounds perfect. But the CRA doesn’t just let you walk away.
I looked at 7 countries where your pension won’t be taxed locally. Some are incredible deals. One used to be and isn’t anymore. But every single one comes with a withholding tax trap. On the average CPP of about $925 a month plus full OAS of about $743 a month, the CRA can take $417 before the money hits your account. There’s one filing election that changes the math. Let’s get into it.
Country 1: The One Nobody’s Talking About
Thirty years ago, Cambodia was a country most travellers avoided entirely. Today it’s quietly become one of the cheapest, easiest places on earth for a foreign retiree to land.
$800 to $1,200 a month for comfortable living. Retirement visa is reportedly one of the easiest in the world… 55 and older, minimal documentation, about $300 a year. No formal tax on foreign pension income.
No treaty with Canada, so you’re looking at that flat 25% withholding.
Technically, if you spend more than 182 days in Cambodia you’re a tax resident, and the law says residents owe tax on worldwide income at rates up to 20%. But Cambodia’s tax system was built around employment income. There’s no filing system for individual pension income, and in practice, foreign retirees aren’t taxed on what they bring in. That’s not a legal exemption — it’s an enforcement gap. And enforcement gaps can close, sometimes with little warning.
Incredible value if you can handle the uncertainty. Healthcare is basic, and serious issues mean a flight to Bangkok.
Country 2: The Country You Can’t Find on a Map
Most Canadians couldn’t point to Georgia on a map. Which is wild, because this is a country that’s been making wine for 8,000 years and somehow nobody’s talking about it as a retirement destination.
Territorial tax system. Zero percent on foreign-source income. No tax treaty with Canada, so same 25% CRA withholding.
Here’s what makes Georgia unique. Canadians can stay visa-free for one full year. No application, no visa fees, just show up. You could literally fly to Tbilisi tomorrow, spend a year there, and decide if it’s for you. Try doing that with any other country on this list.
Cost of living is very low. Tbilisi is modern and increasingly international. Incredible food culture. Healthcare is improving. Private clinics in Tbilisi are decent, rural areas limited. Language is Georgian. English is growing among the younger population but limited overall.
The Catch on Section 217
Quick pause. I mentioned Section 217 earlier as the workaround that can drop your 25% withholding to near zero. Here’s the part most videos skip.
Section 217 only helps if your total Canadian income is low. The moment you’ve got big RRSP withdrawals, a rental property back home, or other Canadian income stacking on top, filing as a resident can actually cost you more than the flat 25%. So it’s not a magic button. For retirees living primarily off CPP and OAS, it’s the single best tool they’ve never heard of. For others, eating the 25% is just the cost of leaving.
Talk to a cross-border tax professional (Like us here at Blueprint!) before you commit. Now back to the list.
Country 3: The Only English-Speaking Option in Central America
Belize is basically the Caribbean’s quieter, cheaper cousin who nobody invites to the party but who’s actually having a better time than everyone else.
If language is a dealbreaker, this solves that problem. Belize is the only English-speaking country in Central America. The QRP program gets you in at 40 or older with about $2,800 CAD a month in foreign income. No tax on foreign income. No treaty with Canada, so 25% withholding.
Mainland living in San Ignacio or Corozal runs $1,700 to $2,500 CAD a month. Island living on Ambergris Caye is pricier, more like $2,800 to $4,200 CAD. Caribbean-adjacent lifestyle without Caribbean prices.
Healthcare is basic. Best care is in Belize City. Serious cases mean medical evacuation to Mexico, Guatemala, or the US.
Country 4: The One Everyone Thinks They Know
Costa Rica has more biodiversity per square kilometre than almost anywhere on the planet. It also has more retirement misinformation per YouTube video than almost anywhere on the internet.
Here’s the biggest one. A lot of videos out there imply or outright state that Costa Rica has a tax treaty with Canada. It doesn’t. What Canada and Costa Rica have is a Tax Information Exchange Agreement. That’s about sharing data, not reducing tax rates. So the withholding rate is the full 25%. If you’ve watched another video that told you 15%, that video was wrong. I checked Canada.ca’s official treaty list. Costa Rica isn’t on it.
Thepensionado visa requires about $1,400 CAD a month in pension income. Your combined CPP plus OAS clears that easily. Healthcare through CAJA is available to residents, and you’re required to join it. Contributions run 7 to 11% of declared income, so flag that as a real cost. Private options are also strong.
Cost of living is moderate. Popular expat areas run $2,800 to $4,200 CAD a month for a couple. Language is Spanish, but English is widely spoken in expat communities.
Still a great option for lifestyle and healthcare. Just don’t go in thinking you’re getting a treaty discount.
Country 5: The English-Speaking Asian Wildcard
The Philippines has over 7,000 islands, and on a surprising number of them, the person serving you coffee will switch seamlessly between Tagalog and English mid-sentence. English is an official language here. Massive advantage for Canadian retirees.
And there’s a treaty with Canada. But it’s an unusual one.
The Canada-Philippines treaty has a unique pension formula. The first $5,000 CAD per year in periodic pension payments is effectively exempt. Above that, withholding caps at 30%. On about $18,500 a year in CPP and OAS, the first five thousand is exempt. On the remaining $13,500, Canada can withhold up to 30%. That works out to roughly $4,050 a year, or about a 22% effective rate.
And here’s the irony. That’s actually higher than what you’d pay filing a Section 217 return from a non-treaty country. The treaty rate is worse than the non-treaty workaround. Section 217 still brings it down though, because the treaty sets the maximum, not the minimum.
Foreign pension income is generally not taxed locally. The SRRV retirement visa was overhauled in September 2025. Minimum age is now 40, with deposits from $21,000 CAD for older pensioners up to around $70,000 for younger applicants without a pension. The program’s had a rocky history, so verify current rules before committing.
Cost of living is extremely low. One of the cheapest countries in Asia. Large Canadian and North American expat community. Good private hospitals in Manila, Cebu, Davao. Limited in rural areas.
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If you’re planning to leave Canada without understanding how withholding actually works, you could be handing the CRA thousands you don’t owe. That’s what we help people avoid at Blueprint Financial. Book a call, link below. And download our free guide, 7 Biggest CRA Tax Traps When Leaving Canada, at blueprintfinancial.ca/exit-canada-tax-guide-download.
Country 6: The Fine Print Matters
Thailand is the country that ruins you for eating anywhere else. Once you’ve had street pad thai at 2 AM in Chiang Mai for two dollars, restaurant Thai food back home never quite hits the same.
Incredible cost of living. World-class healthcare. Massive expat community. Retirement visa at 50-plus.
And Canada has a tax treaty with Thailand. Article 18 says Canadian pensions for past employment are taxable only in Canada. That clearly covers CPP. OAS is a bit more nuanced because it’s residency-based rather than employment-based, but between the treaty and Thailand’s remittance-based system, retirees living on CPP and OAS generally aren’t taxed locally on those payments.
One thing to know. Thailand changed its rules on foreign income in 2024. If you’ve got RRSP withdrawals, investment gains, or rental income flowing in, the math gets messy. But if your only income is CPP and OAS, you’re in solid shape and Thailand is a strong option.
The retirement visa requires you to be 50-plus with an 800,000 THB deposit, roughly $31,500 CAD, or monthly income of about $2,550 CAD.
Here’s how everything stacks up so far. But we’ve got one more country to go, and it’s going to change how you think about this entire list.
Country 7: The European Surprise
Greece invented democracy, philosophy, and the concept of retirement. Okay, I made that last one up. But they might as well have, because the deal they’re offering foreign retirees right now is unique on this list.
Small asterisk. Greece actually does tax your pension. But the rate is so low, and the treaty math works so cleanly, that your total tax bill across both countries can end up lower than what you’d pay in most “zero tax” countries if you can’t use Section 217.
Here’s how. Greece offers a special tax regime for foreign retirees: 7% flat tax on all foreign-source income for up to 15 years.
The treaty makes it better. The Canada-Greece convention exempts the first $15,000 CAD per year in pension payments from Canadian withholding. Above that, the rate caps at 15%, and Canada can’t charge more than what you’d pay as a Canadian resident.
On about $18,500 in average CPP plus full OAS, your effective Canadian withholding works out to roughly 3%. Greece charges 7% flat. The CRA withholding is creditable against your Greek tax. So your total tax bill, both countries combined, is approximately 7%.
Think about what that means. If RRSP withdrawals or rental income kick you out of Section 217 territory, most countries on this list leave you eating a 25% Canadian withholding. Greece caps your total exposure at 7%. It’s not zero. It’s just lower than almost every alternative.
To qualify, you must not have been a Greek tax resident for at least 5 of the prior 6 years, you need proof of foreign pension income, and you need to spend 183-plus days per year in Greece.
EU access. Schengen travel. Affordable by European standards, especially on the mainland and less-touristed islands. Healthcare through the public system is accessible to residents. Private insurance recommended. Language is Greek, but English is widely spoken in tourist areas.
Now, if you’re thinking “what about Portugal?”… you’re not alone. Portugal’s Non-Habitual Resident program used to offer 10% flat on foreign pensions. Used to. The NHR closed to new applicants in January 2024, and the replacement explicitly excludes retirees. Move to Portugal today and you’re looking at standard rates up to 48%, plus a solidarity surcharge. Greece is the European play now. Portugal isn’t.
Conclusion
A country that doesn’t tax your pension is only half the equation. What Canada withholds, whether a Section 217 election applies, and how tax treaties affect your situation — that’s where the real financial impact shows up.
If you want help understanding how these rules apply to your specific situation, explore our financial planning services.
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When it comes to international retirement, the details are where the real opportunities — and risks — lie.
