Can I maintain my Canadian bank accounts while living abroad long-term?

Can I Keep My Canadian Bank Accounts While Living Abroad Long-Term?

If you're a Canadian planning to live abroad for an extended period, you might be wondering what to do with your Canadian bank accounts. The good news is that yes, you can generally maintain your Canadian bank accounts while living overseas long-term. However, there are some important things to consider.

Keeping Your Accounts Active

While living abroad, it's usually possible to keep your Canadian bank accounts open. Many Canadians choose to do this for various reasons, such as:

Maintaining financial ties to Canada

Ease of managing Canadian investments or property

Simplifying finances if you plan to return to Canada eventually

However, you'll need to take some steps to keep your accounts in good standing:

Inform your bank about your plans to live abroad

Ensure you have a way to access online banking

Keep your contact information up-to-date with the bank

Tax Considerations

One crucial aspect of maintaining Canadian bank accounts while living abroad is understanding your tax obligations. Your residency status for tax purposes can affect how you're taxed on income earned in Canada³.

If you're considered a non-resident for tax purposes, you may still need to file a Canadian tax return for certain types of Canadian-source income. It's a good idea to consult with the Canada Revenue Agency (CRA) or a tax professional to determine your specific obligations³.

Practical Tips

Here are some practical tips for managing your Canadian bank accounts while living abroad:

Set up online banking: This will allow you to manage your accounts from anywhere in the world.

Consider keeping a Canadian address: Some banks may require a Canadian address on file. You could use a trusted family member's address if necessary.

Watch out for inactivity fees: Some banks charge fees if an account is inactive for a certain period. Regular transactions can help avoid this¹.

Be aware of exchange rates: If you're transferring money between your Canadian account and a foreign account, keep an eye on exchange rates to get the best value.

When You Might Want to Close Your Account

While it's often beneficial to keep your Canadian accounts open, there may be situations where closing them makes sense:

If you're permanently emigrating and have no plans to return

If maintaining the account becomes too costly or complicated

If you no longer have any financial ties to Canada

If you do decide to close your accounts, be sure to notify any Canadian payers and your financial institutions that you're no longer a resident of Canada⁴.

Final Thoughts

Ultimately, the decision to maintain your Canadian bank accounts while living abroad is a personal one that depends on your individual circumstances. Consider your long-term plans, financial needs, and tax implications when making your decision. And remember, if you ever decide to return to Canada, having an existing bank account can make the transition much smoother!