WHAT HAPPENS TO YOUR TFSA IF YOU LEAVE CANADA?

A Tax-Free Savings Account (TFSA) is a registered savings and investment account available to eligible Canadian residents aged 18 or older who have accumulated TFSA contribution room. It allows investment income, such as interest, dividends, and capital gains, to grow tax-free under Canadian tax rules, making it one of the most popular savings and investment tools in Canada.

If you leave Canada and become a non-resident for tax purposes, you can generally keep your existing TFSA and continue to benefit from tax-free growth under Canadian rules. However, you do not accumulate new TFSA contribution room while you are a non-resident, and making contributions during a period of non-residency may result in a 1% per month tax on the contributed amount for as long as it remains in the account. It’s also important to understand that while Canada may continue to treat TFSA earnings as tax-free, your new country of residence may tax the income or growth inside your TFSA, depending on its tax laws.

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

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