The Accounting and Tax

How Long Can a Canadian Citizen Stay Out Of The Country?

As a Canadian citizen, there is no limit to how long you can stay out of the country. Canadian citizenship is a lifelong status, and leaving Canada for extended periods does not affect your citizenship. However, there are important considerations regarding health coverage, taxes, and other benefits that can be affected by long-term absence.

Here’s a breakdown of what you need to know when spending extended time outside Canada:

How Long Can You Stay Abroad Without Losing Canadian Citizenship?

Canadian citizenship does not expire or diminish because of time spent abroad. Even if you live outside Canada permanently, you will remain a Canadian citizen unless you:

1. Renounce your citizenship voluntarily, or
2. Have it revoked (in rare cases, such as fraud during the citizenship application process).

This means that your status as a citizen is secure, but other aspects of your life—such as benefits, taxes, or residency requirements—may be affected.

What About Canadian Permanent Residents (PRs)?

Permanent residents are different from citizens. PRs must meet residency obligations to maintain their status:

• PRs must spend at least 730 days (2 years) in Canada during the last 5 years.
• If they fail to meet this requirement, they risk losing their PR status.

This rule does not apply to citizens.

Does Time Abroad Affect Canadian Healthcare Coverage?

Canadian health care is provided through provincial or territorial programs, and these programs generally require you to live in the province for a certain amount of time each year to maintain coverage.

Common Rules:

• Most provinces, like Ontario, allow you to be absent for up to 7 months per year and still retain coverage.
• If you’re away for longer, you may need to reapply for health coverage when you return.

It’s important to check the rules specific to your province or territory, as these vary.

Tip:

If you plan to be away for an extended period, consider purchasing travel health insurance to ensure you’re covered for medical emergencies abroad.

How Does Time Abroad Impact Taxes?

Your tax obligations depend on your residency status for tax purposes, not your citizenship.

Residency for Tax Purposes:

• Residents: If you maintain significant residential ties to Canada (like owning a home, having family in Canada, or maintaining a Canadian driver’s license), you may still be considered a tax resident and must report worldwide income to the Canada Revenue Agency (CRA).
• Non-Residents: If you sever ties with Canada and establish residency in another country, you’ll only pay taxes on income earned within Canada.

Filing Taxes After Leaving:

If you leave Canada permanently, you’ll need to file a departure return to notify the CRA.

Will You Lose Benefits While Abroad?

Certain government benefits depend on your residency in Canada and may stop if you leave for too long:

1. Old Age Security (OAS):

• If you’ve lived in Canada for at least 20 years after turning 18, you can receive OAS payments even if you live abroad.
• If not, OAS payments may stop after 6 months outside Canada.

2. Canada Pension Plan (CPP):

• CPP payments are not affected by your location. You can receive them anywhere in the world.

3. Canada Child Benefit (CCB):

• The CCB is for residents only. If you leave Canada, your payments will stop.

4. GST/HST Credits:

• These credits are only available to residents of Canada.

How Long Can You Stay in Another Country?

Your ability to stay abroad depends on the visa or residency requirements of the country you visit. For example:

• United States: Canadian citizens can stay in the U.S. for up to 6 months (180 days) per year without a visa.
• European Union (Schengen Area): Canadians can stay for up to 90 days in any 180-day period without a visa.
• Other Countries: Check the visa rules of your destination country before traveling.

If you plan to stay long-term, you may need a visa or residency permit.

Planning for Long-Term Stays Abroad

To make the most of your time abroad while protecting your Canadian benefits and rights, consider these tips:

1. Understand Health Coverage:
   • Know your provincial health insurance rules and get travel insurance for extended trips.
2. Monitor Your Taxes:
   • Keep track of your tax residency status and consult a tax advisor if needed.
3. Maintain Key Ties (if needed):
   • If you want to remain a tax resident, maintain significant ties to Canada, like a home or bank accounts.
4. Stay Informed About Benefits:
   • Notify the CRA and benefit programs about your travel plans to avoid overpayments.

Final Thoughts

As a Canadian citizen, you have the freedom to travel or live abroad without time limits. However, extended absences can impact health coverage, taxes, and government benefits. It’s essential to plan ahead and stay informed about the rules that apply to your specific situation.

Whether you’re exploring the world or living abroad permanently, proper preparation ensures that your time away is as seamless as possible.