Non-Resident Return to Canada: Canadian Repatriation

What you need to do when moving back home

The Expatriate Group strongly recommends that appropriate tax advice be sought prior to returning to Canada. As a Canadian citizen returning from abroad there is a lot to consider before you re-enter please consult a cross-border tax specialist. We can advise.

Step One: Determine Your Residency Date

Residency is based on establishing ties. You will still be a non-resident visitor for 1-2 months if until ties are established. In the year that you establish Canadian tax residency, you will be treated as a part-year tax resident. For the period of time you are a tax resident of Canada, you are subject to Canadian tax on your worldwide income. As a non-resident of Canada, you are only subject to Canadian tax on Canadian source income. Make sure that you receive foreign payments (bonus, severance package, final pay check, international savings transfer) prior to becoming a tax resident of Canada. If money is received after residency this will be included as taxable income.

You will file a tax return on April 30th deadline of the year that you arrive back in Canada (most likely a partial year return). On this return your re-entry date will reflect the day that you became a tax resident of Canada. Caution: Please ensure that all your financial affairs are in order prior to establishing any major ties back in Canada. It is important to keep a clear picture of you as a non-resident. Remember that your cash should arrive before you to avoid CRA viewing this money as taxable income. It is essential that you carefully plan the date when your Canadian residency starts. Seek professional advice on ties to Canada to establish residency date for tax filing purposes.

Please let me know your experience and provide feedback that other Expatriates returning home will find useful.