It seems that lately, more Canadians are dreaming about leaving the country than ever. Maybe you are too, since you clicked on this post.
But when people start seriously considering it, they hit the same question: “What happens to my income and money?” After helping many Canadians make this move at Blueprint, that’s the number one concern I hear.
So In this blog post, I’m breaking down three types of Canadians I see making this move while keeping their income, sometimes even more of it than before (but sometimes less), starting with…
The Mobile Professional
You’re a consultant, a developer, a designer. Maybe you’re running a small agency. Your work lives on a laptop, your clients are on Zoom, and nobody’s checking whether you’re dialling in from Toronto or Lisbon.
You’ve got the most options of anyone, and in a lot of cases, the most upside.
How It Works
The simplest version: you stay a Canadian tax resident and just… live somewhere else. No departure tax, no severing ties. You’re still paying full Canadian rates, but if you want to test out a lifestyle change without the complexity, this works. The risk? The other country might also claim you as a resident. So it’s best short-term.
The main move: you leave Canada, establish tax residency somewhere new, keep your clients, and pay tax where you’re living instead. If that country has a lower rate than Canada, you keep more of what you earn. That’s it. No special structure needed. You’re just changing which government gets the cheque.
The corporate route: this is where it gets interesting. You set up a corporation in a jurisdiction like Singapore, without having to live there. Headline rate is 17%, but startups get a 75% exemption on the first S$100K and 50% on the next S$100K for three years. Run the math on that and your effective rate can drop below 10%. You need real operations there, not just a mailbox. But you’re no longer pushing income through Canadian personal tax rates.
Preferential tax regimes are another plus. Spain has the Beckham Law, which lets new residents pay a flat 24% on Spanish income instead of progressive rates that go up to 47%. It was originally designed to attract football players. Now it attracts consultants and tech founders.
Where Mobile Professionals Can Lose Money
Your clients won’t work with you. Compliance teams can’t pay invoices to a foreign entity. Professional designations might not transfer. Talk to your top clients and your professional body before you go.
You lose your CCPC status. Once you become a non-resident, your company can lose its Canadian-Controlled Private Corporation status. That means losing valuable small business tax benefits you were counting on.
You create a management mess. If you’re running a Canadian company from another country, that country may claim taxing rights over the business too. Now you’ve got two governments involved, more filings, and potentially higher taxes than if you’d restructured before the move.
Programs disappear. Portugal’s NHR was the gold standard for years. New applications closed in January 2024 and it’s been replaced with a more restrictive successor that’s limited to specific professions. People who built financial plans around it have had to adapt. Don’t build your financial life around someone else’s tax incentive.
Look, the tax treaties, the residency rules, the timing… one wrong step can cost you tens of thousands. That’s exactly what we help people avoid at Blueprint Financial. If you’re serious about making a move, book a free discovery call. Link’s in the description.
The Retiree
You’ve spent 30 years building this. You’ve got your RRSP and TFSA, maybe a pension, maybe some rental income. And now you’re watching groceries, property taxes, and heating bills chip away at it a little more every year.
Here’s what most retirees don’t realize: your income doesn’t disappear when you leave. In some cases, you can keep significantly more of it.
How It Works
When you draw RRSP or RRIF income as a non-resident, Canada withholds tax. Default rate is 25%, but many tax treaties knock that down to 15% on periodic payments. If you’re pulling $80,000 a year from your RRIF in Ontario, your combined marginal rate is somewhere around 30 percent. As a non-resident under a treaty? Fifteen in a lot of countries. That gap compounds every single year.
Then you layer on cost of living. Thailand, for example, runs 40 to 60% cheaper than Canada. Potentially lower taxes and everything costs less.
Now, I chose Thailand here for a reason. Not because it’s a slam dunk, but because it shows how tricky these rules can get. Under Article 18 of the Canada-Thailand tax treaty, Canadian pensions are taxable only in Canada. So you’d pay 25% to Canada and potentially zero to Thailand on the pension income.
But. Thailand changed its foreign income tax rules starting January 1st, 2024. If you’re a Thai tax resident, meaning 180 days or more, any foreign income you remit is now subject to Thai personal income tax.
And even here there’s nuance. Enforcement is still evolving. Many people choose not to report or pay Thai tax on remitted income at all, but that comes with risk and uncertainty, especially if rules tighten or enforcement increases in the future.
Thailand can still work. But the treaty between Canada and your destination is what determines how much you keep and you must be aware of all your risks. Some treaties are mediocre. Some countries don’t have one at all.
Pro tip: Non-residents are exempt from the OAS recovery tax. If your income exceeds roughly $93,000, you’d start losing OAS in Canada. As a non-resident in a treaty country, you keep it. For high-income retirees, leaving Canada can actually restore OAS income.
Where Retirees Can Lose Money
Lump-sum withdrawals. The 15% treaty rate often only applies to periodic payments. Take a big lump sum from your RRIF and you’re stuck at 25%.
OAS rules. To receive OAS outside Canada, you need 20 or more years of Canadian residency after age 18. Not 10. Twenty. Fall short and leave, that cheque stops after six months. And GIS is not payable to non-residents at all.
Healthcare costs. If you’re 55 and healthy, private coverage can be cheap. If you’re 68 with pre-existing conditions, this is a serious planning conversation. Comprehensive coverage for a couple in their 60s runs roughly US$12,000 to $20,000 a year, which can be a dealbreaker.
The Relocator
You got the offer. Maybe it’s a tech company in San Francisco, a finance role in New York, a healthcare position in the UK. The salary’s higher, the employer handles your taxes and payroll, and everything feels like it’s taken care of.
That’s the trap.
Because the paycheck moves seamlessly. And that makes people assume everything else does too.
How It Works
Your new employer usually pays you locally and handles your tax filings in that country. Some companies offer tax equalization, which basically means they top you up or adjust your pay so that your take-home isn’t worse than it would’ve been in Canada. It’s a real perk and most people don’t even know to ask for it.
But none of that covers what happens on the Canadian side. That’s on you. And the stuff nobody tells you about until it’s too late is what costs the most.
Where Relocators Can Lose Money
You don’t sever residency properly. You keep a property. Your spouse stays behind. You keep your health card “just in case.” The CRA looks at the full picture and decides you’re still resident. Now you’re paying in two countries.
Registered accounts get mishandled. Your TFSA stops accumulating room. Some brokerages restrict your accounts entirely. Investments can also become inefficient if they’re still structured for Canadian residency. Consolidate and review everything before you leave.
You don’t negotiate. This is the big one. The time to negotiate relocation support and tax equalization is before you sign. After you sign, you have zero leverage. And the difference between a well-negotiated move and a DIY one can easily run $20,000 to $50,000.
I put together a free guide covering the seven biggest CRA tax traps Canadians hit when they leave. It walks through exactly what to watch for. Grab it at blueprintfinancial.ca, link’s here:
👉https://blueprintfinancial.ca/exit-canada-tax-guide-download
The One Thing That Ties It All Together
Every scenario I just walked through hinges on one thing: properly handling your Canadian tax residency.
Because at the end of the day, that’s what determines whether Canada can tax your worldwide income or not.
The CRA uses a “totality of circumstances” test. Primary ties: home available in Canada, spouse or dependants still here. Secondary ties: driver’s licence, health card, bank accounts. No single factor decides it. The CRA weighs all of them together.
There’s also a departure tax which can shock a lot of people when planning an exit. I’ve done a whole blog on that so check that out.
Conclusion
The big takeaway is this: yes, you can leave Canada without losing your income. In many cases, you can actually come out ahead.
But it only works if the move is planned properly.
Your tax residency, your accounts, your corporate structure, and where your income is sourced all matter. Get those pieces right, and you may be able to keep your income while potentially lowering your taxes and cost of living at the same time.
Get them wrong, and the CRA may still treat you as if you never left.
If you’re thinking about living or working abroad and want to make sure these details are handled properly, learn more about our financial planning services.
And for more insights on taxes, cross-border planning, and smarter financial decisions, join our free financial newsletter.
The right plan before you move can make all the difference.
