Accounting & tax services

Immigration & Emigration Tax

Tax filings and advisory for newcomers to Canada and Canadians departing — done right the first time, in your language.

Short answer

Canadian tax follows residency, not citizenship or immigration status. Becoming a resident starts worldwide taxation and resets the cost base of most property; ceasing residency triggers a deemed disposition of most property at fair market value on the departure date.

Last reviewed: August 24, 2026

Key facts

Immigration & Emigration Tax
Test	Residential ties — home, spouse and dependants, plus secondary ties
On arrival	Most property is deemed acquired at fair market value on the date residency begins
On departure	Deemed disposition of most property; reported on Form T1243
Excluded from departure tax	Canadian real property, registered plans, certain pension rights
Foreign property reporting	T1135 required above CAD 100,000 of cost

Moving to or from Canada creates tax obligations that are easy to get wrong. A&S Financials helps newcomers understand their first Canadian return and their residency status, and helps departing residents with departure tax, foreign-income reporting and treaty considerations. Our multilingual team explains everything in English, French, Arabic or Hindi so you know exactly what to file and when.

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What we offer

First Canadian tax return for newcomers
Residency determination and planning
Departure (emigration) tax calculations
Foreign income and asset reporting
Tax-treaty and cross-border considerations
Multilingual guidance (EN / FR / AR / HI)

Residency is a facts test, not a date on a document

The CRA looks at residential ties: where your home is, where your spouse and dependants live, and secondary ties such as bank accounts, memberships, a driver's licence and provincial health coverage. Immigration status and citizenship are not determinative. That matters because the date residency starts or ends drives the whole calculation. Someone who leaves Canada but keeps a home available, a spouse resident here and a full set of local ties may not have ceased residency at all — and will be assessed on worldwide income for a period they assumed was untaxed. A tax treaty can override the domestic result where two countries both claim you as resident, applying tie-breaker rules in a set order.

Departure tax is charged on gains you have not realised

Ceasing residency triggers a deemed disposition of most property at fair market value on the departure date — tax on accrued gains as if you had sold everything, with no cash received. For a shareholder of a private company or a holder of a long-held portfolio this can be very large in a year with no proceeds. Security can be posted with the CRA to defer payment until the property is actually sold, with no interest on the deferred amount. This is the mechanism most departing shareholders rely on, and it has to be arranged rather than assumed. Canadian real property and registered plans are excluded, so an RRSP can be kept after emigration — though withdrawals by a non-resident attract Canadian withholding tax at a rate that depends on the treaty with your new country.

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Corporate Tax Accounting Small Business Accounting Personal Tax Services Bookkeeping & Payroll GST, QST & HST Filing Tax Planning Financial Advisory & Planning CRA & Revenu Québec Support

Terms explained

Frequently asked questions

I just moved to Canada. What is my cost base?

Most property is deemed to have been acquired at its fair market value on the date you became a resident, so gains accrued before arrival are generally outside the Canadian net. Documenting those values at the time is far easier than reconstructing them years later on a sale.

Do I have to report assets I left behind?

If the total cost of specified foreign property exceeds CAD 100,000 at any point in the year, a T1135 is required. It is an information return rather than an extra tax, but the penalties for missing it are among the harshest in the system and the reassessment period is extended.

Can I defer departure tax?

Yes, by posting acceptable security with the CRA. Payment is deferred until the property is actually disposed of, and no interest accrues on the deferred amount. It has to be arranged as part of the departure filing rather than requested afterwards.

What if I move back to Canada later?

Re-establishing residency starts a new cost base at the value on the date of return for most property. Where departure tax was deferred and the property was never sold, an election may unwind the deemed disposition — worth reviewing before you re-enter, not after.

Do I still file a Québec return after I leave?

It depends on where you were resident on December 31 of the departure year and whether you retain Québec-source income. The federal and Québec residency determinations follow similar principles but are made separately, and they do not always land in the same place.

Sources

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