Canada Pension Plan (CPP) and OAS When You Live Abroad (2026)
Key takeaways
- CPP is contribution-based and follows you worldwide — you do not need to live in Canada to keep receiving it.
- OAS continues abroad only if you have at least 20 years of Canadian residence after age 18; with fewer than 20 years it generally stops after you have been outside Canada for more than 6 months.
- As a non-resident, CPP and OAS are normally taxed at a flat 25% under Part XIII of the Income Tax Act, unless a tax treaty lowers the rate.
- You can have both benefits sent by direct deposit to a bank account in many foreign countries.
- OAS recovery tax (“clawback”) still applies to high earners abroad: the minimum threshold for the July 2026–June 2027 period is CAD 93,454 of net world income.
- Social security agreements between Canada and dozens of countries can help you qualify for, and continue to receive, OAS.
CPP is payable anywhere in the world
CPP is an earnings-related, contributory pension. Because you funded it through payroll contributions during your working years, entitlement is not tied to where you live in retirement. Service Canada confirms that CPP benefits can be received while living outside Canada, alongside OAS, on its international benefits pages. Whether you retire in Portugal, Thailand or the United Kingdom, your CPP retirement pension continues to be paid for life. The same principle applies to CPP disability, survivor and children’s benefits, subject to their own eligibility rules.
OAS abroad: the 20-year residence rule
OAS is a residence-based pension funded from general tax revenue, so the rules for receiving it abroad are stricter. According to Service Canada’s guidance on receiving OAS while outside Canada, your OAS pension can continue indefinitely abroad only if either of the following is true: you lived in Canada for at least 20 years after turning 18; or you lived and worked in a country that has a social security agreement with Canada, and your combined time in both countries totals at least 20 years.
If you have between 10 and 20 years of Canadian residence, you can still start OAS, but if you leave Canada your payments generally stop at the end of the sixth month after the month you departed. They resume if you return to live in Canada. This is why the timing of your emigration and your total years of residence matter so much for OAS planning.
How non-resident tax applies to CPP and OAS
Once you become a non-resident of Canada for tax purposes, your Canadian-source pension income falls under Part XIII of the Income Tax Act. The Canada Revenue Agency (CRA) states that the usual Part XIII rate is 25%, and that OAS, CPP and Quebec Pension Plan benefits, along with other pension payments, are among the income types it applies to. The payer — in this case the Government of Canada — deducts the tax at source before you are paid.
Many of Canada’s tax treaties reduce this rate for periodic pension payments; some also give the country where you live the primary right to tax government pensions. To claim a reduced rate you should tell Service Canada your country of residence, and you may be able to file Form NR5 so that less tax is withheld during the year where a treaty and your income level allow it.
The section 217 election and the OAS Return of Income
Because 25% of your gross pension may be more than you would pay as a resident, the CRA allows a section 217 election. This lets you report eligible Canadian pension income — including OAS and CPP — on a Canadian return and pay tax at the graduated resident rates, which can produce a refund of some of the Part XIII tax withheld. Guide T4145 sets out how the election works.
Separately, OAS recipients living abroad must usually file an Old Age Security Return of Income (OASRI) each year. This return is how the CRA assesses the OAS recovery tax.
OAS recovery tax still applies to high earners
Living abroad does not exempt you from the OAS recovery tax, often called the clawback. It is charged at 15% on net world income above an annual threshold. For the recovery period running from July 2026 to June 2027 the minimum income recovery threshold is CAD 93,454, and OAS is fully clawed back once income reaches roughly CAD 152,062 for those aged 65 to 74. Non-residents report worldwide income on the OASRI, and the recovery tax can be deducted from monthly OAS payments.
The Guaranteed Income Supplement does not travel
One benefit that does not follow you abroad is the Guaranteed Income Supplement (GIS), the income-tested top-up paid to low-income OAS pensioners. GIS is only payable to people living in Canada, and Service Canada’s rules for OAS while outside Canada mean the supplement stops after you have been away for more than 6 months, regardless of how many years you lived in Canada. If GIS forms part of your income, factor its loss into your retirement budget before you emigrate, because it will not resume until you return to live in Canada.
Applying and what to do before you leave
You can apply for CPP and OAS from abroad, and if you have lived or worked in a country with a social security agreement you may apply through that agreement. The most important practical step is to tell Service Canada your new country of residence and your departure plans. Doing so lets them set direct deposit correctly, apply the right treaty withholding rate, and — as the department expressly warns — helps prevent overpayments that you may later have to repay. Keep your address and banking details current through My Service Canada Account, and remember that provincial health coverage generally ends when you cease to be a resident, so arrange private or destination-country cover separately.
Getting paid abroad: direct deposit and social security agreements
Service Canada strongly encourages direct deposit and can pay CPP and OAS into a bank account in many foreign countries, in the local currency, avoiding cheque delays. Where direct deposit to your country is not available, payment may be made another way. Canada’s network of social security agreements can also help you meet the residence requirements for OAS by counting periods lived or contributions made in the other country. Always tell Service Canada before you leave Canada for an extended period, so payments are set up correctly and overpayments are avoided.
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Frequently asked questions
Can I keep receiving CPP if I move abroad permanently?
Yes. CPP is based on your contributions and is payable worldwide for life, whether or not you live in Canada, per Source.
Will my OAS stop if I move overseas?
Only if you have fewer than 20 years of Canadian residence after age 18 — in that case OAS generally stops after 6 months abroad. With 20+ years it continues indefinitely, per Source.
How much tax is withheld on my Canadian pensions when I live abroad?
The default is 25% under Part XIII, though tax treaties often reduce it, per Source.
Can I reduce the 25% withholding?
Yes — by telling Service Canada your country of residence to apply a treaty rate, filing Form NR5, or making a section 217 election to be taxed at graduated rates, per Source.
Do I still face the OAS clawback abroad?
Yes. The 15% recovery tax applies to net world income above CAD 93,454 for the July 2026–June 2027 period, reported on the OASRI, per Source.
Can my pensions be deposited into a foreign bank account?
Yes, direct deposit to a bank account is available in many countries; sign up through Service Canada, per Source.
Sources
- Service Canada — Benefits for people who have lived or worked outside Canada
- Service Canada — Old Age Security: While receiving OAS
- Service Canada — Canada Pension Plan retirement pension
- CRA — Non-residents of Canada (Part XIII tax)
- CRA — Electing under section 217 of the Income Tax Act
- CRA — Old Age Security Return of Income (OASRI)
- CRA — Form NR5, Application by a non-resident for reduced withholding
- CRA — Guide T4145, Electing under Section 217
- Service Canada — OAS payment amounts and recovery tax thresholds