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hi Allan, I retired in 2023 and have been travelling ever since and continue to file tax as a resident (including for year 2025). I'm planning to return to Hong Kong to live permanently, beginning in January 2026, and will file as NR for 2026 tax (in Spring 2027) to report dividend and capital gain income (these are my only income). I have no property and other significant ties in Canada. I plan to withdraw my pension in a lump sum after the 2 year requirement with the 25% withheld tax as my final tax obligation, and will not file tax as a NR thereafter.
Questions:
1) I am currently already in Hong Kong. Do I need to return to Canada (say, December this year) to physically leave in early January to mark the NR departure date? Or merely filing 2026 NR tax - stating my departure date - would suffice?
2) I won't have any income in Hong Kong (HK does not levy tax on dividends & capital gains) and so won't be filing tax in HK in case CRA asks for proof of tax residency in HK. I plan to rent an apartment. Does CRA request any rental agreement and proof of payment - or anything else - in case of NR status "audit"/review?
3) As a NR, how can I apply for my CPP? By mail? I read somewhere that as a NR, one cannot apply online via the Social Service Canada portal. Is that right? Is there any difference/advantage if I withdraw later, eg. at age 70 rather than 65.
4) As a NR, is one eligible for OAS at all? If yes, how to apply?
Many thanks, Allan!
Hi Jennifer,
Thank you for your questions. I’ll address each of your points in turn:
1) Do you need to return to Canada to “physically depart” to mark the non-residency date?
No, you do not need to return to Canada to physically leave again to establish your non-residency date. You can choose the date you permanently severed your Canadian residential ties. In your situation, if you have been living in Hong Kong continuously and have no significant Canadian ties (e.g., no home, no dependents, no provincial health coverage), you can designate January 1, 2026 as your date of departure. You would indicate this date on your 2026 tax return (the “Date you left Canada” section). CRA will accept that date as long as your facts substantiate it—you don’t need to cross the border again.
2) Proof of tax residency in Hong Kong and possible documentation
It is common for CRA to ask for evidence that you have established tax residency elsewhere. Even if Hong Kong does not tax your investment income and you don’t file a return there, you can still show that you are “factually resident” in Hong Kong. For example, you can retain:
- A copy of your Hong Kong rental agreement and rent receipts
- Hong Kong ID or proof of address (utility bills, bank statements)
- Evidence of day-to-day living there (e.g., local bank account statements, phone bills)
While there is no requirement to file a Hong Kong tax return on tax-exempt income, these documents can help demonstrate to CRA that you truly emigrated and are not simply a tax resident of nowhere.
3) Applying for CPP as a non-resident
Yes, you can still receive CPP while living abroad. You are correct that non-residents cannot apply through the My Service Canada Account (online portal). Instead, you must complete the ISP1000 – Application for CPP Retirement Pension form and mail it to Service Canada.
Regarding the timing:
- The longer you delay (up to age 70), the larger your monthly CPP payment.
- If you start before age 65, there is a reduction of 0.6% per month before 65 (up to a 36% reduction).
- If you start after age 65, there is an increase of 0.7% per month after 65 (up to a 42% increase).
So, if you have no immediate need for cash flow and a longer life expectancy, waiting until 70 may be advantageous.
4) Eligibility for OAS as a non-resident
Yes, you can still receive OAS abroad if you meet the residency criteria. In general, you must have lived in Canada for at least 20 years after turning 18 to receive OAS while living outside Canada. You apply using the ISP-3000 form (Application for the Old Age Security Pension), and this must be submitted by mail.
Keep in mind that OAS payments are subject to a 25% non-resident withholding tax (which can be reduced by tax treaties).
Next steps and final thoughts
Your plan sounds clear and well thought out. I recommend you:
- Keep detailed records of your departure and evidence of your life in Hong Kong
- Notify CRA of your departure date on your 2026 tax return (and possibly by submitting Form NR73, though it is not mandatory)
- Apply for CPP and OAS by mail once you meet the eligibility dates
If you would like more personalized advice, or help with your non-resident return or pension applications, feel free to reach out.