Leaving Canada: The Step-by-Step Process Explained
Most people who are thinking about leaving Canada feel stuck at the starting line. Not because they lack motivation - but because the process looks impossibly complex from the outside.
It isn't. It's just big.
Break it into five stages and it becomes a checklist. A long one, sure, but a checklist you can actually work through.
Here is the full process, stage by stage.
Stage 1: The Decision (12+ Months Out)
This is the most underrated stage. Most people treat "the decision" as a single moment. It isn't. It's a research period - and what you learn here determines everything that happens in the stages that follow.
Choose two or three destination countries. Don't try to evaluate 15. Pick two or three that match your lifestyle, income, and residency timeline needs. Portugal, Mexico, Panama, Costa Rica, and the UAE are among the most common Canadian destinations right now. Each has different visa timelines, tax treaties, and cost-of-living profiles.
Understand the departure tax concept. When you leave Canada, the CRA deems you to have sold all your capital property on the day of departure. That means unrealized gains in your non-registered investment accounts and real estate (other than your principal residence) become taxable. The more you understand this now, the more planning runway you have. See our full departure tax guide for the details.
Map your RRSP drawdown scenarios. Your RRSP or RRIF isn't subject to departure tax directly, but once you become a non-resident, withdrawals are subject to withholding tax under Canada's tax treaty with your destination country - not your Canadian marginal rate. The rate varies by destination. Understanding the difference between drawing down your RRSP as a resident versus a non-resident is one of the most significant financial planning decisions in this process.
Talk to a cross-border tax advisor. This is not optional. Canadian tax law, departure returns, and the interaction between Canadian tax treaties and your destination country's rules are specialized enough that generalist accountants regularly miss things. Find someone who does this specifically. The cost of an early consultation is a fraction of a planning mistake.
Stage 2: Preparation (6 to 12 Months Out)
You've done the research. You have a destination or two in mind. Now you start building the infrastructure you'll need to actually move.
Get your police clearance certificate. Many visa and residency programs require a Canadian police clearance. The RCMP process takes weeks. Start early. Some countries also want an apostille, which adds another step.
Get medical certificates if required. Some residency programs - Portugal's D7, Panama's Pensionado, and others - require a clean medical record or physical exam. Check your destination's specific requirements.
Open banking in your destination country. See the Canadian banking as a non-resident guide. Some banks will open accounts for non-residents. Others require proof of local address. Research this early because banking timelines vary widely by country. Having local banking established before you arrive removes a significant amount of stress on arrival day.
Make your property decision. Are you selling, renting, or holding your Canadian real estate? This is not a decision to make in month one of your move. It has tax implications, principal residence exemption implications, and cash-flow implications. Selling before departure is often cleaner from a tax perspective. Renting after departure makes you a non-resident landlord with NR6 withholding obligations. There is no universally right answer - but there is a right answer for your specific situation.
Notify your provincial health insurer. Most provinces require a waiting period after return before coverage is reinstated. Before you leave, you need to know exactly when your provincial coverage ends so you can arrange bridging coverage. Do not assume you are covered until the day you board the plane.
Stage 3: Paperwork (3 to 6 Months Out)
This is the highest-volume paperwork stage. Plan for it to take longer than you expect.
File Form NR73 (Determination of Residency Status). This form lets CRA officially determine your residency status after departure. It is not mandatory, but having a formal non-residency ruling gives you certainty. The complete Canadian departure checklist covers all 12 categories in the full sequence. Without it, your residency status can be challenged later, particularly if you still have residential ties in Canada.
File Form T1161 (List of Properties by Emigrant of Canada). If you own property with a fair market value exceeding $25,000 CAD at departure, you are required to file this form with your departure return. This includes non-registered investments, real estate other than your principal residence, and business interests. Failing to file when required carries penalties.
Submit your visa or residency applications. Most programs have multi-month processing timelines. Portugal's D7 visa, for example, requires appointment booking at a consulate plus document preparation time. Panama's Friendly Nations visa has its own document list. Apply well before your intended departure date.
Notify CRA of your intended departure date. Your departure return covers January 1 through your departure date. CRA needs to know when that is.
Arrange international health insurance. You will have a coverage gap between provincial insurance ending and local coverage (if any) beginning. International health insurance fills that gap. Plans vary widely by premium, coverage territory, and pre-existing condition handling. Compare carefully.
Stage 4: Transition (0 to 90 Days)
The move itself. The logistics are significant but they are finite.
File your departure return (T1). This covers your income from January 1 to your departure date. It is due by April 30 of the following year, but you cannot file it until after you have actually left. Your accountant will need your departure date and fair market values of deemed-disposed property as of that date.
Deregister from provincial health. Some provinces do this automatically when you notify them. Others require a form. Confirm the process for your province.
Close unnecessary Canadian accounts. Keep the accounts you need (a Canadian bank account for receiving CPP or OAS later, for example), but consolidate and close what you don't need.
Establish banking in your destination. If you have not already done this remotely, this is now your first priority on arrival.
Sell, store, or ship your belongings. The cost and logistics of international shipping are frequently underestimated. For most people, selling most of their furniture and shipping only personal items and high-value goods is the most practical approach. Get multiple quotes. Customs rules vary by destination.
Stage 5: Non-Resident Year One
You are out. The administrative tail is not over, but you are in the last stretch.
NR4 reconciliation. If you received Canadian income as a non-resident (rental income, investment income, RRSP withdrawals), you will receive NR4 slips showing income paid and withholding tax deducted. These feed into your destination country's tax filing.
RRSP drawdown rate decision. Now that you are a non-resident, you can begin drawing down your RRSP at the treaty withholding rate rather than your Canadian marginal rate. Whether to accelerate drawdowns or take a slow withdrawal strategy depends on your destination country's tax treatment, your other income sources, and currency considerations.
CPP and OAS applications. You can receive CPP and OAS as a non-resident. Applications for OAS should go in around age 64. CPP can be started as early as 60 (at a reduced rate) or deferred to 70 (at an enhanced rate). The optimal strategy depends on your health, your other income, and your destination country's tax treaty with Canada.
Build your local life. Get your local driver's licence. Join something. Find the expat community in your city. The administrative work wraps up. Life continues.
This Is More Manageable Than It Looks
Every step above is knowable. None of them require guesswork once you know your province, your asset picture, your timeline, and your destination. The reason people feel overwhelmed is that they are trying to hold the entire map in their head at once.
The quiz below takes three minutes. It maps your situation to a personalized departure plan - the stages that apply to you, in the order you need to work through them, with the variables that matter for your province and destination.