Departure Tax Awareness Rises Amongst Richmond Residents Preparing to Leave Canada

Don't forget your tax obligations before relocating to a new country.

RICHMOND, BRITISH COLUMBIA, CANADA, October 7, 2025 /EINPresswire.com/ -- The Canada Departure Tax is a process that Canadians often overlook but comes with a significant cost. It’s not the expense of speaking with a financial accountant, but the expense incurred on your assets before leaving Canada.

What Canadians Should Know About Their Tax Before Leaving Canada

The combination of remote work and the increased cost of living has opened new opportunities for Canadians. For many residents across Canada not just in Richmond, BC, individuals are moving abroad where income tax is lower to save money.

While the departure tax is not a new concept for accountants. Residents who decide to relocate abroad permanently may require to pay tax on certain assets, even those that were not sold before departure. This tax arises from a concept called “deemed disposition,” in which assets are considered sold at fair market value as a condition of severing Canadian tax residency.

Recent amendments have been implemented due to the increase in departures. As of June 25, 2024, the tax rate for capital gains subject to this departure tax has increased to a rate of 66.67% for the first $250,000.

Key Details and Exceptions for Departure Tax

Principal residence: Canadian real estate that qualifies as one’s principal home is exempt from the deemed disposition requirement at the time of departure. However, capital gains realized after departure may still become taxable when the property is eventually sold.

Exempt accounts: Registered vehicles such as RRSPs (Registered Retirement Savings Plans) and TFSAs (Tax-Free Savings Accounts) are generally excluded from departure tax.

Other assets: Investments held outside registered accounts, shares in private corporations, personal property (art, vehicles, jewelry) and non-registered portfolios may be subject to deemed disposition rules.

Deadlines and deferral options: The departure tax return must usually be filed and taxes paid by April 30 of the year following departure (or by June 15 for self-employed individuals, though payment is still due April 30). In some cases, the CRA allows deferral of payment until the actual sale of the asset, provided suitable security is offered. No interest is charged during deferral.


Why This Matters For Tax Residents
When departure tax obligations are forgotten, they don’t disappear, they only become more complicated over time. This is why it’s essential for residents to consult a qualified personal tax advisor before emigrating from Canada. A professional can assist in completing the necessary documentation, accurately calculating potential capital gains, and developing strategies to minimize overall tax liability.

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