RESIDENCY STATUS CHANGE

Avoid Tax Surprises With a Correct Residency Status

A simple residency update can save you from major tax headaches. Find out your correct status and file with peace of mind.

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What you need to know about residency status changes and your taxes

Why your residency status matters

Changing where you live can also change how the Canada Revenue Agency (CRA) taxes your income. Whether you’re leaving Canada, returning home, or moving to Canada for the first time, your residency status determines how much tax you owe, what income must be reported, and which credits or benefits you qualify for.

Moving in or out of Canada?

If you recently moved out of Canada, you may now be considered a non-resident for tax purposes. That means you only pay tax on Canadian-source income, such as rental income, investments, or pensions. On the other hand, if you moved to Canada, you may become a resident or deemed resident, and your worldwide income becomes taxable in Canada.

Get in touch with tax pros who specialize in non-resident tax

If you’re unsure whether you’re a resident, non-resident, or deemed resident for tax purposes, a professional tax review can help ensure your situation is correctly classified with the CRA. C.A.T.S Accounting specializes in non-resident tax and we know the ins and outs of cross border tax preparation.

Never pay more than you need to

Share information about your self-employment, freelance, or rental income, and every required tax form is added for you.

Whether you’re living in Canada or abroad, all available deductions are identified to help increase your tax savings.

Enjoy peace of mind knowing your return is accurate, compliant, and optimized for the highest possible refund.

Why choose C.A.T.S for your residency status change?

Maximum Refund Guarantee

We search for every eligible deduction and credit to maximize your return.

Specialists in Non-Resident Tax

We understand the complexities of cross-border income, residency changes, and foreign asset reporting.

Completely Done-For-You Process

Send us the required documents and let our team of tax professionals handle the rest.

Why our clients love us

  • "Couldn't Recommend Them Enough"

    I have been going to CATS accounting for over 10 years now. I have never been disappointed and have never had any mistakes on my files. All the accountants are thorough, professional and very adept at what they do.

    Nadia W.

  • "Exceptional Customer Care and Commitment"

    I would like to thank C.A.T.S Accounting office for their professionalism and sincere dedication in providing their accounting tax services to me throughout the past years. [Tax Expert Name] and his team go always go the extra mile to make sure everything is done properly, using all the tools and knowledge at their disposal. It is rare to encounter such a high standard of care and commitment.

    Sherine B.

  • "Eliminated My Anxiety About Taxes"

    There are no words grand enough to express how much I enjoy working with [Tax Expert Name] and his fantastic team or how they have cleared the cobwebs from my mind thus reducing the anxiety associated with taxes. I am so blessed to have an accounting group to trust and console with at unexpected times. Thank you for your care and attention!

    Kiki N.

Frequently asked questions

  • Residency status determines how the Canada Revenue Agency (CRA) taxes your income. Canadian residents are taxed on worldwide income, while non-residents are only taxed on Canadian-source income. Your ties to Canada, including your home, family, or employment, help determine your residency status.

  • The CRA looks at several factors, including where your permanent home is, where your spouse and dependents live, where you hold bank accounts, and where your personal belongings are located. If you leave Canada permanently and sever most residential ties, you may be considered a non-resident for tax purposes.

  • To change your residency status, you must inform the CRA by filing the correct forms and reporting your income according to your new status. When leaving Canada, individuals typically complete a departure return, while those entering Canada file a new resident return. Supporting documentation about your move and ties to or from Canada is often required.

  • As a non-resident, you only pay tax on Canadian-source income, such as rental income, pension, or employment income earned in Canada. Non-resident withholding taxes (often 25%) may apply, though in some cases, filing special returns like Section 216 can help reduce the amount of tax you owe.

  • If you return to Canada and re-establish significant residential ties, you become a resident again for tax purposes. You’ll start reporting your worldwide income from the date you became a resident. It’s important to inform the CRA as soon as your status changes to avoid double taxation or compliance issues.

  • Yes. When your residency status changes, you must file a departure return (the year you leave) or a new resident return (the year you arrive). These returns ensure the CRA correctly calculates your taxable income for the portion of the year you were a resident.

  • Yes. Benefits like the GST/HST credit, Canada Child Benefit (CCB), and Old Age Security (OAS) are typically only available to residents of Canada. Once you become a non-resident, these payments stop unless you meet specific exceptions or treaty conditions.

  • Processing times vary depending on your documentation and the complexity of your situation. In most cases, it can take several weeks for the CRA to review your information and confirm your new status. Keeping your paperwork complete and accurate helps speed up the process.

  • Yes. You may need to update your address and residency status with banks, investment firms, insurance providers, and government agencies such as Service Canada or your provincial health plan. This ensures accurate tax reporting and benefit eligibility.

  • Your residency status determines how much tax you pay, what income you must report, and which deductions or credits you can claim. Filing under the wrong status can lead to penalties, double taxation, or missed refunds, which is why it’s crucial to get it right before submitting your return.

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