WHAT HAPPENS TO YOUR RRSP IF YOU LEAVE CANADA?

A Registered Retirement Savings Plan (RRSP) is a Canadian retirement savings account that allows eligible individuals to make tax-deductible contributions while their investments grow on a tax-deferred basis. Taxes are generally paid only when funds are withdrawn, making an RRSP one of the primary retirement planning tools available to Canadians.

If you move outside Canada and become a non-resident for tax purposes, you can generally keep your RRSP and continue to hold your investments. However, unlike when you are a Canadian resident, you typically do not accumulate new RRSP contribution room unless you have new earned income that creates contribution room under Canadian tax rules. When you eventually withdraw funds as a non-resident, Canadian withholding tax generally applies, although the amount may be reduced depending on the tax treaty between Canada and your new country of residence. Your new country may also tax those withdrawals, depending on its domestic tax laws and any applicable treaty.

If you’re planning to retire or relocate outside Canada, it’s important to understand how your RRSP fits into your overall retirement, tax, and investment strategy before making any major financial decisions.

If you’ve been researching what happens to your RRSP when you leave Canada, RRSP rules for non-residents, retiring abroad from Canada, Canadian retirement planning, or international relocation, SOL Properties can help connect you with trusted professionals who can assist with cross-border planning, international real estate, relocation, and retirement strategies, with both English and Spanish-speaking support.

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