Moving abroad doesn’t mean leaving your Canadian pension and benefits behind, but it does mean the rules change.
Whether it’s your CPP (Canada Pension Plan), OAS (Old Age Security), or other Canadian benefits, your residency status, years of contributions, and the destination country’s agreements with Canada will decide what you can keep.
At Accounting Montreal, we help expats understand exactly what income they can count on in retirement, and how to keep more of it after taxes.
Canada Pension Plan (CPP) While Living Abroad
1. Eligibility
- You can receive CPP payments anywhere in the world if you have at least one valid contribution to the plan.
- Payments are based on your contribution history, not where you live.
2. Withholding Tax
- Non-resident CPP recipients are subject to 25% withholding tax, unless a tax treaty reduces it.
3. Payment Method
- Direct deposit is available in many countries.
Old Age Security (OAS) While Living Abroad
1. Eligibility
- You must have lived in Canada for at least 20 years after age 18 to receive OAS while abroad.
- If you don’t meet the 20-year requirement, you may still qualify under a social security agreement with your country of residence.
2. Recovery Tax
- High-income non-residents may still face a recovery tax that reduces OAS payments.
Other Canadian Benefits
Guaranteed Income Supplement (GIS)
- Only payable outside Canada for up to 6 months after departure.
Employment Insurance (EI)
- Limited eligibility abroad; generally must be in Canada to receive benefits.
How Tax Treaties Affect Pensions and Benefits
Tax treaties can:
- Reduce or eliminate withholding taxes
- Determine whether Canada or your new country taxes your pension
- Prevent double taxation on CPP, OAS, and other benefits
Reference: Service Canada – Public pensions and benefits
Example: Pension Planning in Action
Marie, a retired Montreal nurse, moves to Portugal. Thanks to the Canada–Portugal tax treaty, her CPP and OAS payments are only taxed in Portugal, eliminating Canadian withholding tax. She also benefits from direct deposit in euros, avoiding costly exchange fees.
Planning Tips Before You Move
- Confirm eligibility for CPP, OAS, and GIS.
- Check tax treaty benefits with your destination country.
- Set up direct deposit in local currency where available.
- Consult before departure to coordinate tax treatment between Canada and your new home.
Why Professional Advice Matters
Each pension and benefit has its own eligibility and tax rules. Without proper planning, you could face reduced payments, higher withholding tax, or even benefit loss.
At Accounting Montreal, we:
- Confirm your benefit eligibility
- Apply treaty provisions to reduce taxes
- Coordinate Canadian and foreign pension reporting
- Assist with Service Canada forms and CRA requirements
Your Canadian pensions and benefits can continue to support you abroad — but only if you understand the rules. A little planning now can mean thousands more in your pocket later.
Contact Accounting Montreal today for a personalized pension and benefits strategy before you move abroad.
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