Retiring Outside Canada? Will You Lose Your CPP, OAS & GIS?

Imagine this: You’ve finally retired. You book a one-way ticket to Mexico, ready for a life of sunshine and beach walks — funded by your CPP, OAS, and GIS.

But just six months in? Two of those benefits vanish completely.

The other? Hit with a surprise tax.

Most Canadians don’t realize exactly what happens to their government income when they move abroad. In this blog post, I’ll explain what still pays out, what gets taxed, and what stops completely.

And to make it easy, I’ll give you a one-screen cheat sheet at the end of this article — showing exactly how CPP, OAS, and GIS behave when you leave Canada.

Stick around, screenshot it, and stay in control of your retirement plan.

The Hard Truth: What You Lose First (GIS)

What happens to the Guaranteed Income Supplement (GIS) if you move abroad?

Well I got some bad news, the GIS is not portable. It’s a monthly benefit meant to support low-income seniors who live in Canada — and the government is very clear about this: if you leave Canada for more than six consecutive months, your GIS stops.

This rule applies even if your income stays low and you continue filing Canadian taxes.

Example:
Jean, a 71-year-old retiree in Vancouver, was receiving both CPP and GIS. After deciding to retire in Mexico to stretch her pension further, she was surprised to find that while her GIS was terminated a few months into her move. Why? Because she was outside Canada for more than six months — and that automatically disqualifies her.

According to the Government of Canada:

“Your Guaranteed Income Supplement payment can stop if you leave Canada for more than 6 consecutive months.”

Here’s the key: no social security agreement will protect your GIS. GIS is strictly tied to your physical presence in Canada.

💡 GIS Reality Check:
“Even if your income threshold is low enough and qualifies for the payments, GIS won’t follow you abroad.

If GIS is a critical part of your retirement income, make sure you consider this before relocating. You might need to delay your move, adjust your budget, or explore other income options to replace the loss.

Pro Tip: Residency Trick: Some retirees maintain part-year residency in Canada to keep their healthcare and tax status — it’s the classic snowbird move. They spend winters somewhere warm like Florida but make sure not to stay outside Canada for more than 183 days in a calendar year. 

What You Get to Keep: CPP

What happens to your Canada Pension Plan (CPP) benefits when you become a non-resident?

First off, it’s important to know that CPP is based on your contributions during your working life in Canada — not on your residency. That’s great news if you’re thinking of retiring abroad.

The good news? CPP benefits travel with you. The amount you receive is the same whether you’re living in Canada or somewhere sunny like Portugal, Thailand, or Costa Rica.

Take Linda, for example. She worked in Toronto for 35 years, paid into CPP the entire time, and now she’s planning to retire in Spain. Even though she’s leaving Canada, her CPP payments won’t change — because they’re based on her contributions, not where she lives. 

Your CPP is like the faithful golden retriever of retirement benefits — loyal, and goes everywhere with you.”

That said, there are a few key tax considerations once you’re outside Canada:

• Your CPP payments may be subject to withholding tax if you’re considered a non-resident.
  
• If Canada has a tax treaty with the country you’re moving to, that tax could be reduced or even eliminated.
  
• Without a tax treaty? You could face a 25% withholding tax on your CPP payments.
  

For example: If you’re moving to the U.S., there’s a tax treaty in place — and you may avoid withholding tax entirely.

The key here is to review your destination’s tax treaty with Canada carefully. These agreements vary widely and can make a significant difference in how much of your CPP you actually keep.

Canada also has social security agreements with over 50 countries, which help:

• Avoid double contributions
  
• Ensure your CPP coverage continues uninterrupted
  
• Coordinate benefits if you’ve worked both in Canada and abroad
  

And there’s more good news:
If you’re receiving CPP survivor benefits or child benefits, those also continue while living outside Canada.

As for actually receiving your CPP payments:

• You can have them direct deposited into a Canadian bank account, or
  
• In many countries, you can receive them in local currency through a local bank,
  
• Or they can be mailed as a cheque in Canadian dollars if needed.
  

Lastly, while your CPP amount doesn’t change, your new country might tax those payments differently. It’s smart to check local tax laws so you’re not caught off guard.

🌍 Thinking about moving abroad? Your net worth plays a huge role in your financial freedom and lifestyle choices overseas. Start tracking it with my Net Worth Tracker to stay organized and reach your financial goals—whether in Canada or overseas.

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The Maybe: OAS

What happens to your Old Age Security (OAS) benefits when you retire abroad?

First off, it’s important to understand that OAS is based on residency, not on your work history or contributions like CPP. To qualify for OAS while living outside of Canada, you must meet specific residency rules.

The key rule is this: you can receive OAS abroad if you’ve lived in Canada for at least 20 years after turning 18. If you meet that threshold, your monthly OAS payments will continue — even if you’re living permanently overseas.

Take Pedro, for example. 

He moved to Canada at age 25 and lived there for 30 years before retiring to Spain. Because he met the 20-year residency requirement, he continues to receive his full OAS payments while living abroad.

Think of OAS like a a loyalty card, it only works after 20+ visits (years).

But what if you don’t meet the 20-year rule? Your OAS could stop if you leave Canada for more than six consecutive months after the month of departure. That means:

• If you’ve lived in Canada less than 20 years and leave the country for more than 6 months, your OAS will be suspended
  
• You’ll have to return to Canada and re-establish residency before you can start receiving it again
  

There are exceptions though. You might still qualify for OAS abroad if:

• You lived or worked in a country that has a social security agreement with Canada
  
• The combined time you lived in both countries is at least 20 years
  

Important: Years lived in another country do not increase your OAS amount — they only help determine if you qualify to keep receiving it.

Now let’s talk about taxes.

Your OAS payments are considered taxable income — even when you live abroad.
However, federal tax isn’t automatically withheld each month. You can request voluntary tax deductions by logging into your My Service Canada Account or filling out form ISP-3520OAS.

If you live outside Canada, your OAS may also be subject to non-resident withholding tax:

• The default rate is 25%
  
• But if you live in a country with a tax treaty with Canada, that rate may be reduced — or eliminated entirely
  

For example: If you move to the United States, Canada’s tax treaty means your OAS is not subject to withholding tax. 

But if you move to Germany, Canada does have a tax treaty in place — but it does not eliminate withholding tax on your OAS. Instead, under Article 18(2) of the Canada–Germany Tax Treaty, Canada may tax public pensions like OAS at a rate not exceeding 15%. So, you’ll typically pay 15% withholding tax on your OAS payments while living there.

You’ll receive an NR4 tax slip each year (instead of a T4 if you lived in Canada), and you’ll need to include it when you file your annual tax return.

And remember: you must continue filing a Canadian tax return every year to keep receiving your OAS while abroad.

💡 OAS Pro Tip:
If you’re concerned about hitting the income threshold for the OAS recovery tax (clawback) — which begins at $93,454 in 2025 — consider managing your taxable income through RRSP withdrawals or deferring OAS to age 70 for a higher benefit. I’ll go over that in more details now.

Planning Strategies to Maximize Benefits

👤 Example: Meet Anita, 67, Retiring to Portugal

Anita is 67 and has just retired after spending 22 years living and working in Canada. She qualifies for full CPP and just became eligible for OAS because she crossed the 20-year residency threshold. She’s also been receiving GIS due to her modest income.

She plans to move to Portugal, which has a social security and tax treaty with Canada.

Here’s what happens when she moves:

✅ CPP continues without interruption.
Thanks to the tax treaty, she pays a reduced 15% withholding tax on her CPP.

✅ OAS also continues, since she met the 20-year requirement.
Had she moved a year earlier, she’d have received nothing until returning to Canada or qualifying through the treaty.

❌ GIS stops after 6 months.
No matter her income, GIS requires ongoing Canadian residency, and there’s no workaround.

💡 What Anita did right:

• Delayed her move until she hit 20 years of residency
  
• Chose a treaty country (Portugal) to reduce tax
  
• Started planning early so she could manage her budget without GIS
  

Tying it All Together – Your Travel Companions 

Let’s tie it all together with a simple way to remember how these benefits behave when you retire abroad.

🧭 Think of CPP, OAS, and GIS like your travel companions:

• CPP is your ride-or-die friend. You’ve worked together for years — and now that you’re retiring, they’ll stick with you wherever you go. Portugal, Thailand, Mexico? CPP’s already packed and waiting at the gate. Just watch out for tax at your destination — they may charge a fee to let your friend in.
  
• OAS is more selective. They’ll only come if you’ve built a strong enough relationship — meaning 20+ years of living in Canada after age 18. If not, they might stay home unless you’ve got mutual friends in countries with a social security agreement.
  
• GIS? That friend loves home. Generous while you’re here, but once you leave Canada for more than 6 months… they ghost you. No treaty, no workaround, no goodbye.

📸 Cheat Sheet for CPP, OAS, GIS: What Happens When You Leave Canada?

(Screenshot this so you don’t forget!)

🧠 Pro Tips (Below the Table):

•  Move after qualifying for full OAS (20 years rule)
  
• Understand your destination countries tax treaties and social security agreementswith Canada
  
• Consider draw down RRSPs before becoming a non-resident
   
• Plan for private healthcare — provincial coverage ends after 6–7 months
  

There’s a lot more to retiring abroad than sunshine and lower rent. The financial landscape can shift quickly — and the consequences of a misstep can be costly. At Blueprint Financial, we specialize in helping Canadians make informed, tax-smart decisions when planning a move overseas.

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