Your Canadian Bank Account When You Move Abroad (2026)
Key takeaways
- Non-residents may keep Canadian bank accounts. There is no legal requirement to close them when you move abroad.
- You must notify your bank and any Canadian payers once you become a non-resident of Canada, per the Canada Revenue Agency (CRA).
- The default non-resident (Part XIII) withholding tax rate is 25%, but interest paid to a non-resident dealing at arm’s length with the payer is generally exempt.
- Residency for tax is decided by your residential ties, not your citizenship. Keeping a bank account is only a minor (“secondary”) tie.
- Registered accounts behave differently: a TFSA loses its advantages once you are non-resident, and RRSP/RRIF withdrawals are taxed under Part XIII.
- Tell the bank before you go, keep your address and contact details current, and set up secure online banking so you can operate the account from abroad.
Can you keep a Canadian bank account as a non-resident?
Yes. Nothing in Canadian law forces you to close a personal bank account when you emigrate, and most banks will let you keep a chequing or savings account open after you leave. Many people do exactly that, because a Canadian account is useful for receiving a final pay cheque, a tax refund, a pension, or rental income, and for paying off any lingering Canadian bills. The CRA’s own guidance for emigrants assumes you may “still have bank accounts in Canada” after departure and simply tells you what to do about them (see the notification rule below). For an overview of your rights when dealing with a bank, see the Financial Consumer Agency of Canada.
Practical point: some banks restrict certain products for customers with a foreign address (for example, opening a new account or a new investment account from overseas), and a few may ask you to move to a non-resident account type. Policies vary between institutions, so confirm directly with your bank before you go.
Residency, residential ties and why the bank account matters
Whether you owe Canadian tax after you leave depends on your residency status for tax purposes, which the CRA decides by looking at your residential ties to Canada, not your passport. The most significant ties are a home in Canada, a spouse or common-law partner, and dependants who remain here. A Canadian bank account is only a “secondary” residential tie, so on its own it will not keep you a Canadian tax resident. See CRA T4058 — Non-Residents and Income Tax.
You generally become a non-resident (an “emigrant”) on the latest of the date you leave Canada, the date your spouse and dependants leave, and the date you become resident in your new country. From that point you pay Canadian income tax only on your Canadian-source income. Read the CRA’s guidance for people leaving Canada (emigrants).
You must tell your bank you are a non-resident
This is the step people most often miss. The CRA is explicit: “If you still have bank accounts in Canada or amounts being paid to you from Canada, you are required to notify any Canadian payers and your financial institutions that you are no longer a resident of Canada.” See the CRA emigrants page.
Telling the bank does two things. It lets the bank apply the correct withholding and reporting rules to any income it pays you, and it keeps you compliant. Give the bank your new foreign address and, where required, complete any non-resident declaration it asks for. You should also update your address with the CRA and with any Canadian pension or benefit payer.
Withholding tax on interest: the 25% rule and the arm’s-length exemption
Certain Canadian-source income paid to a non-resident is subject to Part XIII withholding tax at a flat 25%, which the payer deducts and sends to the CRA. See the CRA’s rates for Part XIII tax. A tax treaty between Canada and your new country can reduce this rate.
Ordinary bank interest is the important exception. As the CRA states, “the interest that you receive or is credited to you is exempt from Canadian withholding tax if the payer is dealing at arm’s length with you” (T4058). A retail bank and an ordinary customer deal at arm’s length, so interest on a normal chequing or savings account is generally not subject to the 25% tax. In practice this means a simple savings account rarely creates a Canadian tax bill for a non-resident.
Where amounts are paid or credited to a non-resident and tax is withheld (or the annual total is $50 or more), the payer reports it on an NR4 slip. See CRA NR4 — Non-Resident Tax Withholding, Remitting, and Reporting. Dividends and most pension payments, by contrast, do attract the 25% (or treaty-reduced) rate.
Registered accounts: TFSA, RRSP, RRIF and brokerage
Registered and investment accounts are the part that genuinely needs planning before you leave:
- TFSA: You can keep an existing TFSA, but you build no new contribution room for any year you are a non-resident, and contributions made while non-resident are hit with a 1% monthly tax until withdrawn. See CRA — TFSA and non-residents. Many countries also tax TFSA income, since they do not recognise its tax-free status.
- RRSP/RRIF: You do not have to collapse an RRSP when you leave. Withdrawals paid to a non-resident are subject to Part XIII withholding (25%, or a treaty rate, often 15% on periodic RRIF payments). See Part XIII rates.
- Non-registered brokerage: Some brokerages will not maintain an investment account for a client resident in certain foreign countries. Confirm with your provider well before departure, and note that leaving Canada triggers a “deemed disposition” of many types of property.
Moving money and closing accounts
If you do transfer larger sums abroad, compare your bank’s foreign-exchange rate with specialist money-transfer services, as the spread can be significant. Keep at least one Canadian account open for a while after you leave: a tax refund, a final CRA balance, or a pension top-up can still arrive months later. If you decide to close an account, clear any pre-authorised payments first and download or export your statement history, because regaining access from overseas can be awkward. For consumer protections around closing accounts and complaints, see the Financial Consumer Agency of Canada.
How Flyto can help
Flyto moves households from Canada to Europe and worldwide, door-to-door; get a quote. Sorting out your banking, tax residency and health cover is part of a smooth departure, and getting the logistics right removes one of the biggest sources of stress in an international move.
Frequently asked questions
Do I have to close my Canadian bank account when I move abroad?
No. There is no legal requirement to close it, and non-residents commonly keep Canadian accounts. You are, however, required to tell the bank you have become a non-resident. See Source.
Will my bank interest be taxed at 25% once I am a non-resident?
Generally no. Interest paid by a bank to an arm’s-length non-resident is exempt from Part XIII withholding tax, so an ordinary savings or chequing account usually creates no Canadian withholding. See Source.
What is the non-resident withholding tax rate on other income?
The default Part XIII rate is 25%, applied to income such as dividends and most pension and RRSP/RRIF payments, unless a tax treaty reduces it. See Source.
Does keeping a bank account make me a Canadian tax resident?
No. A bank account is only a secondary residential tie. Residency is determined mainly by significant ties such as a home, spouse and dependants in Canada. See Source.
Can I keep my TFSA after I emigrate?
You can keep it, but you accrue no new contribution room while non-resident, and contributions made during non-residency face a 1% monthly tax. Your new country may also tax the account. See Source.
Do I still have to file a Canadian tax return?
Often not for bank interest alone, since exempt interest is not reportable. You do need to file if you have taxable Canadian property, elect under section 217, or have other income requiring a return. See Source.
Sources
- Canada Revenue Agency — Leaving Canada (emigrants)
- Canada Revenue Agency — T4058 Non-Residents and Income Tax
- Canada Revenue Agency — Rates for Part XIII tax
- Canada Revenue Agency — NR4 Non-Resident Tax Withholding, Remitting and Reporting
- Canada Revenue Agency — TFSA and non-residents of Canada
- Canada Revenue Agency — NR4 and Part XIII tax overview
- Financial Consumer Agency of Canada — Banking rights and complaints
- Canada Revenue Agency — Individuals leaving or entering Canada and non-residents