Leaving Canada Permanently is becoming an increasingly common choice for many. In 2024 alone, over 81,000 individuals made the decision to leave Canada permanently, a significant figure that highlights a growing trend of Canadian emigration. The motivations behind this shift vary, but the most common reasons include economic challenges like the cost of living crisis, better career opportunities abroad, and, perhaps most notably, tax considerations.
The rapidly increasing trend of moving from Canada includes not only Canadian citizens but also recent immigrants looking for more favorable conditions abroad. Becoming a non-resident of Canada comes with legal, tax, and logistical implications that require careful consideration and advice from experts.
As global mobility becomes a key issue for many, Harvey Law Group (HLG) offers great experience in international relocation, immigration law, and cross-border planning. Our team of experienced immigration lawyers and global mobility experts helps clients navigate the often complex process of obtaining residence or citizenship in popular destinations such as Portugal, the Caribbean, and Asia.
The Canadian Exodus: Why People Are Leaving Canada
Canada has traditionally been viewed as a country that offers both Canadian nationals and immigrants great opportunities, stability, and a high quality of life. However, in recent years, that perception has changed for many. In 2024, people made the decision to leave Canada permanently, in what has become known as the Canadian exodus.
The most common reasons stated for leaving Canada were; unaffordable housing in major cities such as Vancouver or Toronto and wage stagnation that failed to keep pace with inflation. Canada is also experiencing increased taxation alongside a decrease in the quality and availability of public services.
At Harvey Law Group (HLG), we specialize in helping individuals and families understand their options and make informed decisions about leaving Canada permanently. Our experienced team of immigration lawyers and global mobility experts can provide wide ranging support for those considering emigration from Canada.
What Becoming a Non-Resident Really Means
A non-resident is an individual who has left Canada to live elsewhere and no longer has significant residential ties to Canada. Once the individual is mainly living outside Canada, Canadian authorities may officially classify them as a non-resident for tax and legal purposes.
Canadian non-residency is based on several factors, including the length of time spent outside Canada, the location of the individual’s primary residence, and the potential removal of any residential ties such as a home, a spouse or dependents remaining in Canada, and personal property.
It is important to remember that each situation is unique and is considered on a case-by-case basis. Our at HLG team includes Canadian lawyers who are now non-residents themselves, bringing firsthand experience and knowledge about the process to help provide accurate and up to date advice.
Please note, non-residency status is determined by residency factors, not by citizenship.
For example, a Canadian who moves abroad for work or retirement and establishes a home in another country may be considered a non-resident for tax purposes. If this is the case, they would generally only be taxed in Canada on income from Canadian sources and would no longer file a regular Canadian tax return, but instead a non-resident return (if required).
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A Canadian non-resident is usually required to report and possibly pay tax on income earned from Canadian sources, such as rental properties or investments. However, someone who only spends part of the year abroad, such as spending a couple of months during the winter in Florida to avoid the cold, may still be considered a resident if they retain strong ties to Canada. However, those who fully relocate and no longer have any residential connections are more likely to be classified as non-residents.
Advantages of Establishing Non-Residency When Leaving Canada Permanently
A Canadian resident who relocates from Canada and establishes non-residency can take advantage of several important financial and legal benefits. By officially obtaining non-resident status, individuals can simplify their tax obligations and avoid being taxed on their worldwide income by Canada. Instead, non-residents will usually only be subject to Canadian taxes on income earned from Canadian sources, such as rental properties, pensions, or investments.
Non-residency may also help remove the requirement of filing annual Canadian tax returns and remove double taxation issues, especially if a tax treaty exists between Canada and the new country of residence.
As well as simplifying Canadian obligations, establishing non-residency allows individuals to take advantage of the benefits available in their new country of residence. For instance, securing a Golden Visa in certain EU countries may grant residency rights, access to public services, and free movement across the Schengen Area. Some countries also offer favorable tax regimes for new residents and access to high-quality healthcare and education systems.
Common Misconceptions and Concerns About Becoming a Non-Resident
Many Canadians who are considering a move abroad often hesitate due to common misconceptions and fears surrounding the non-residency process. One of the major concerns is the belief that they will lose their Canadian citizenship, which is not the case. Citizenship and residency are entirely separate.
Another frequent misunderstanding is that becoming a non-resident is a very complex or irreversible process. However, with proper planning, residency status can be re-established in the future if the individual returns to live in Canada.
The Canada departure tax
Another misconception is that becoming a non-resident means being subject to penalties for leaving, i.e. the departure tax. It is important to note that the departure tax only applies to specific assets and can often be deferred or reduced with professional advice.
Understanding the CRA’s Confusing or Misleading Guidelines on Non-Residency
One of the biggest challenges Canadians face when considering non-residency is understanding the Canada Revenue Agency’s (CRA) guidelines on the process. These guidelines are considered by many to be overly complex and unclear.
While the CRA provides general criteria, such as the definitions and requirements for residential ties and time spent in Canada, many of the rules are open to interpretation, leading to confusion about whether an individual will actually qualify as a non-resident. Terms like “significant residential ties” can be vague, and the lack of clearly defined thresholds can cause confusion for those interested in obtaining non-residency.
Another issue is that the CRA’s language may lead individuals to believe that maintaining any connection to Canada, such as owning property or visiting family, automatically disqualifies them from non-residency status. However, in reality many non-residents who have already emigrated from Canada still have small ties with Canada and don’t face any issues, as long as their primary residence, daily life, and financial interests are located abroad.
Key Steps to Becoming a Non-Resident
Becoming a non-resident of Canada involves more than simply leaving Canada and moving abroad, it requires the individual to follow a set process. This process is to ensure that the Canada Revenue Agency recognizes the change in tax status and avoid issues such as double taxation etc.
The first step is to become a non-resident of Canada, the individual has to physically leave Canada and establish residency in another country and obtain legal residency status (such as having a visa or residency permit).
The next step is to sever your primary residential ties. This includes selling or renting out your Canadian home, relocating your spouse and dependents (if applicable and truly necessary), and moving some of your personal possessions out of Canada.
Secondary ties such as Canadian bank accounts, driver’s licenses, health cards, and professional memberships should either be closed, transferred, or updated to reflect your new country of residence.
Before leaving Canada, individuals must inform the CRA of their plans to emigrate by filing the appropriate forms, such as the NR73 or by indicating the departure date on the individual’s final tax return.
Those who plan to move from Canada should note that they may be subject to departure tax on certain assets. However, the full liability or amount of departure tax owed will vary depending on the individual’s financial situation.
Where Canadians Are Relocating: Top Destinations
For Canadians who are considering emigration, their top choices are those that offer economic advantages, career opportunities, and favorable tax environments. The following are the current top choices, favored by those who are considering moving from Canada:
The United States
The US currently remains the top choice, attracting around 38% of Canadian emigrants. Its geographic proximity to Canada allows for easy travel back home when needed, the US also has a stronger job market and many US based jobs offer higher wages than the equivalent in Canada. There is also a generally lower tax burden in many U.S. states as well.
Immigration options like the EB-1, EB-2, and National Interest Waiver (NIW) visas make it possible for skilled professionals and entrepreneurs to establish themselves south of the border with relative ease.
New Zealand
New Zealand is also becoming a promising destination for high-net-worth individuals.
In 2024, New Zealand introduced the Active Investor Plus Visa, aimed at attracting international investors seeking permanent residency. Within the first two weeks of its launch, the program received 44 applications, which resulted in NZD 77 million in committed capital for New Zealand.
Recent updates, effective from April 2025 introduced the following options for applicants:
- Growth Category: A NZD 5 million investment over 3 years into NZTE-approved direct investments or managed funds.
- Balanced Category: A NZD 10 million investment over 5 years into a diversified portfolio, including bonds, listed equities, and qualifying property development
Read Also: Moving to New Zealand with Your Family: 2025 Complete Guide
Hong Kong
Hong Kong attracts approximately 11% of Canadian emigrants. Its position as a global financial hub offers many career opportunities, and a lower tax environment, making it attractive for finance and business professionals.
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Portugal
Portugal is quickly becoming a popular choice for Canadians, largely due to its highly attractive Golden Visa program. The Golden Visa offers EU residency and free movement within the Schengen Area.
Portugal also offers relatively affordable real estate, excellent healthcare, and tax incentives through the Non-Habitual Resident (NHR) program.
Your might interested in: Portugal Golden Visa: A Strategic Investment in 2025
The United Arab Emirates (UAE)
The UAE is another top destination for residents of Canada. This popularity is due to the zero personal income tax rate, a growing professional job market, and streamlined residency program available through the UAE Golden Visa.
The UAE also has one of the worlds most modern and high tech infrastructures and a high standard of living.
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How Harvey Law Group Can Help
At Harvey Law Group (HLG), our Canadian immigration lawyers and global mobility experts understand that emigrating from Canada is a major life decision and involves careful legal, financial, and logistical planning.
Whether you’re leaving Canada for better career prospects, lifestyle improvements, or tax reasons, our team of immigration lawyers and global mobility experts are available to provide you assistance and guidance to make sure you make the best decision for your needs and requirements. Notably, some of our Canadian lawyers are now non-residents themselves, bringing firsthand experience with the process and an understanding of the practical and legal considerations involved.
Our process will begin by assessing your individual situation and needs to determine the best options for establishing non-residency in Canada. This includes advising on how to properly sever both primary and secondary residential ties, and ensuring that you satisfy all of Canada’s Revenue Agency (CRA) requirements.
HLG also offers a wide range of experience and knowledge relating to the immigration programs of top destination countries, including the United States, Portugal, the UAE, and others. From visa options to permanent residency or citizenship opportunities, such as the Golden Visa or Residency by Investment programs, HLG can help you secure a new residency abroad.
With offices in 15 countries, our global presence allows us to provide continuous support even after you’ve relocated. If you’re part of the growing number of people leaving Canada and considering your options as a non-resident of Canada, Harvey Law Group can provide you with the information you need to make an informed decision.
Conclusion
For many Canadians, leaving Canada permanently is a carefully thought out plan made in response to economic reasons, professional goals, and personal needs.
Whether the rising cost of living is becoming a problem, looking for new career opportunities or the need for a different lifestyle, the decision to emigrate is becoming an increasingly common choice for people around the world.
However, making the move requires careful planning and expert guidance to make sure the emigration process is completed in full compliance with Canadian and international requirements. From understanding what non-resident status is and requires, to choosing the right country and immigration option, the process can be complex. At Harvey Law Group, we’re here to help. Our team of immigration lawyers and global mobility experts is ready to provide a personalized assessment of your situation and offer you assistance to help find the best option for you.
If you’re considering emigration from Canada, contact us today to learn more about your options.
