Infographic: Navigating Your Financial Transition Abroad - Quebec Residents (AI Q&A + Translation)

🏠 Establishing Your Tax Residency

To become a non-resident for tax purposes, you must sever residential ties with Canada & Quebec. This is crucial as it dictates how your income is taxed.

Key Federal (CRA) Criteria

❗Significant Ties: Dwelling place, spouse/dependants in Canada.
🔗Secondary Ties: Personal property, bank accounts, driver's licence, health card, social ties.
✈️Intent: Must demonstrate intent to permanently depart and establish residency elsewhere.
🗓️183-Day Rule is a Misconception: Not automatic if significant ties remain.

Filing Form NR73 with CRA for an opinion is advisable but not mandatory.

Key Quebec (Revenu Québec) Criteria

🔗Aligns generally with federal rules.
🚶Focus on ties to Quebec, visit frequency, and anticipated return.
📄Indicate status change on final Quebec tax return.
📢Notify RAMQ (health) & SAAQ (driver's/vehicle).

Actions to Sever Ties:

Sell or establish arm's length lease for your dwelling.
Ensure spouse/dependants also leave.
Dispose of or store personal property appropriately.
Close unnecessary Canadian bank accounts; change address on others.
Surrender Quebec driver's licence/health card.
Change all mailing addresses to foreign address.
Establish clear ties in the new country (accommodation, banking, local ID).

💸 The Departure Tax Explained

Upon ceasing Canadian residency, you're deemed to have sold certain assets at Fair Market Value (FMV), potentially triggering capital gains. A key concept is Deemed Disposition.

Federal Deferral Security Threshold (CRA):

$16,500

Security needed if deferred federal departure tax exceeds this.

Quebec Deferral Security Threshold (RQ):

$13,777.50

Security needed if deferred Quebec departure tax exceeds this.

Asset Treatment:

Asset Type	Subject to Deemed Disposition?
Quebec Condo (Canadian Real Property)	No (Taxed on actual sale as TCP)
RRSP / RRIF	No
TFSA	No
Non-Registered Shares (Publicly Traded)	Yes (Generally)
Personal Use Property > $10k FMV	Yes
Cash / Bank Deposits	No

Reporting: File T1243 (CRA) & TP-1033.2.A-V (RQ). If total property FMV > $25k, also file T1161 (CRA) & TP-785.2.5-V (RQ).

🔑 Decisions for Your Quebec Condo

A major decision with significant tax implications. Compare your options:

Sell Before Departure

PRE: Full if qualified.

Tax: Potentially $0.

Pros: Simplest, max PRE.

Cons: Market timing, temp housing.

Sell After Departure

PRE: Limited to resident years.

Tax: Gain taxable.

Pros: Wait for market (risky).

Cons: Complex (T2062), withholding.

Rent (with 45(2) Election)

PRE: Extended up to 4 yrs (if Cdn res).

Tax: Gain deferred.

Pros: Income, keeps property.

Cons: Landlord duties, eventual non-res sale.

Rent (no 45(2) Election)

PRE: Up to change of use.

Tax: Gain after change taxable.

Pros: Income.

Cons: Partial PRE loss, landlord duties.

HBP Repayment: Due earlier of filing departure return or 60 days after ceasing residency.

💰 Managing Your Investments Abroad

Rules for TFSAs, RRSPs, and non-registered accounts change significantly for non-residents.

TFSA

✅ Can be held as non-resident.
🚫 **No contributions** while non-resident (1%/month penalty).
🇨🇦 Withdrawals tax-free in Canada.
🌍 May be taxable in new country.
📈 No new contribution room accumulates.

RRSP

✅ Can be held as non-resident.
💸 Withdrawals subject to 25% federal withholding (or treaty rate).
📄 Section 217 election may reduce tax.
🌍 May be taxable in new country (check for tax credits).

Non-Registered Investments:

Subject to Departure Tax (deemed disposition) unless TCP.
TCP (e.g., Cdn real estate) taxed on actual sale as non-resident.
Post-departure Cdn interest: often exempt from withholding.
Post-departure Cdn dividends: 25% withholding (or treaty rate).

🗓️ Phased Departure Plan

A systematic approach to notifications and filings is crucial.

Phase 1: Early Planning (6-12+ Months Before)

Consult CPA with international tax expertise.
Decide on condo strategy (sell/rent).
Review investments with advisor.
Estimate departure tax; plan HBP repayment.

Phase 2: Pre-Departure (1-3 Months Before)

Close condo sale if selling. If renting, arrange agent, NR6, 45(2) election.
Systematically sever ties (notify institutions, RAMQ, SAAQ, change addresses).
Gather documents for departure tax returns.

Phase 3: Immediate Departure Period

Finalize closure of unneeded Cdn bank accounts.
Confirm exact date of departure for tax.
Ensure HBP repaid (within 60 days of ceasing residency).

Phase 4: Post-Departure Compliance

File NR73 with CRA (optional).
If condo sold as non-resident, file T2062/TP-1097-V within 10 days.
File final T1 & TP1 departure returns by deadline (incl. T1243, T1161, etc.).

💡 Key Recommendations

🏆Prioritize Selling Condo Before Departure: Maximizes PRE, simplifies taxes.
💰Maximize TFSA Contributions Before Leaving: No contributions while non-resident.
📜Understand RRSP Withdrawal Implications: Check tax treaty rates.
📊Address Departure Tax Systematically: Identify assets, calculate gains, file forms.
✂️Sever Ties Thoroughly & Document Everything: Crucial for non-resident status.
📬File All Notifications & Tax Returns Accurately and On Time.

Next Steps:

Consult a CPA with international tax expertise. Seek tax advice in your destination country. Consider legal advice for property matters.