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I plan on moving to Greece and becoming a tax resident there under the special 7% pensioneer tax treaty. If I sell all of the shares in my TFSA while still a Canadian tax resident, and repurchase the same shares in a non-registered account, will my departure tax be lower based on the new FMV of the shares? Also, once I withdraw these shares as Canadian non-resident, will there be a withholding fee on them?
Thank you.
Hi Michele,
Departure tax does not apply to Tax Free Savings Accounts (TFSAs). Therefore, you don't need to sell your investments held in a TFSA to reduce departure tax. In addition, your TFSA can continue to grow tax-free while you are a non-resident. TFSA withdrawals made by a non-resident are not subject to a withholding tax. Note that you cannot make new contributions to a TFSA after you become a non-resident of Canada.