Managing your finances abroad from Canada
Moving to Canada rarely means closing everything behind you. Most newcomers keep a bank account at home, send money to family, still own property or a pension abroad, and earn in two currencies for a while. None of that is a problem. What matters is knowing which parts Canada wants reported, which parts are actually taxed, and how to move money without losing a percentage on every transfer.
Tax residency, not citizenship, decides almost everything on this page.
Everything starts with tax residency
CRA decides where you are taxed based on residential ties: where you live, where your spouse or partner and dependants live, and where your home, bank accounts, and driver's licence are. Your permit type does not settle it. Once you are a Canadian tax resident, Canada taxes your worldwide income from the date you established those ties.
1 · Canadian tax resident
Report worldwide income: foreign salary, interest, dividends, rent, and pensions, converted to Canadian dollars. Foreign tax already paid can often be credited so the same income is not taxed twice.
2 · Non-resident
Only Canadian-source income is taxed, often through withholding at source. This applies if you keep minimal ties here, and it also matters if you later leave Canada.
3 · Treaty tie-breaker
When two countries both claim you, the tax treaty decides using permanent home, centre of vital interests, habitual abode, then nationality. Treaties reduce double taxation; they never let you skip reporting.
Record your arrival-day values
On the day you become a Canadian tax resident you are deemed to have acquired most foreign property at its fair market value that day. Save valuations, account statements, and property appraisals from that date. They set your cost base and can save you thousands when you eventually sell.
Sending money home
Sending your own money abroad is not taxed in Canada, and there is no legal limit. The real cost is the exchange-rate markup, which banks bury in the rate rather than charging as a visible fee. On a CAD 2,000 transfer, a bank spread of two to three percent costs CAD 40 to 60 more than a specialist provider, on top of any wire fee.
Compare the total, not the fee
Add the transfer fee to the exchange-rate markup. A zero-fee transfer with a bad rate is usually the expensive one.
Expect FINTRAC reporting
Transfers of CAD 10,000 or more are reported by your bank as a routine anti-money-laundering record. It is not a tax event.
Keep the paper trail
Save transfer confirmations, especially for family support, property purchases, or repaying a loan. Banks and CRA both ask about source of funds.
Two providers worth starting with
Wise
Free transfer up to $800 for new users
Wise converts at the mid-market rate and shows the fee as a separate line, so you can see exactly what the transfer costs. The multi-currency account holds and converts between dozens of currencies, with local account details in several of them.
Why it helps if you moved here
- Local account details in CAD, EUR, GBP, USD and more, so payments from home still land without an international wire.
- Useful while you are paid in one currency and spending in another during your first months here.
- Statements are clean enough to hand to CRA or a landlord asking where the money came from.
Remitly
No fees on your first transfer
Remitly is built around regular remittances rather than currency management. You choose delivery speed per transfer, and the recipient can take bank deposit, cash pickup, or a mobile wallet depending on the country.
Why it helps if you moved here
- Cash pickup and mobile wallets reach family who do not use a bank account.
- Locked exchange rate at the moment you send, so the person receiving knows the exact amount.
- Strong coverage in South Asia, Southeast Asia, Africa, and Latin America, where bank wires are slow and expensive.
These are referral links. They cost you nothing extra and often include a signup bonus.
Keeping bank accounts in your home country
Keeping a home-country account is normal and often sensible: you may still have direct debits, a mortgage, family obligations, or a plan to return. Canada does not prohibit it. It does expect you to report the income it produces, and to declare the account itself once your foreign holdings pass the CAD 100,000 cost threshold.
Good reasons to keep it open
| Reason | What it looks like | Why it matters |
|---|---|---|
| Standing payments at home | A mortgage, loan, insurance, or subscription still billed in the local currency | Closing the account forces you to refinance or re-paper every direct debit |
| Income you still receive there | Rent, dividends, a pension, or freelance work paid in the local currency | Receiving into a local account avoids an inbound conversion on every payment |
| Credit history you may return to | A long-running account and clean repayment record in your home country | Rebuilding that history from zero later is slower than keeping the account open |
| Currency timing | Savings you do not need to spend in Canada yet | You are not forced to convert at whatever the rate happens to be on moving day |
| Family and property ties | Supporting relatives, or an apartment you still own or rent out | A local account keeps those payments cheap and traceable |
What it costs you
- Annual reporting once your foreign property cost passes CAD 100,000.
- Converting interest and gains to Canadian dollars every year.
- Dormancy fees and closures if the account is unused or your address changes.
- Some home-country tax-free accounts lose that status once you are taxed here.
Tell your home bank you have moved. Many countries restrict non-resident accounts or apply different withholding rates, and an out-of-date address is the most common reason an account is frozen at the worst possible time.
What has to be reported, and what is actually taxed
Reporting and taxation are two different things. Plenty of foreign assets must be declared without creating any tax, and the penalty for not declaring is often larger than the tax would have been.
| Asset or transaction | Reported on T1135? | Canadian tax treatment |
|---|---|---|
| Foreign bank or brokerage account | Yes, if total foreign property cost is over CAD 100,000 | Interest, dividends, and realized gains are taxable in Canada |
| Home you live in abroad | Not counted for T1135 while it is for personal use | Renting it out makes it reportable and the rent taxable |
| Foreign rental property | Yes, once total foreign property cost passes the threshold | Report gross rent and expenses; foreign tax paid may create a credit |
| Foreign pension or social security | No T1135 for most registered pension plans | Usually taxable in Canada, subject to the tax treaty |
| Foreign shares held outside Canada | Yes, included in the T1135 total | Dividends and gains are taxable; withholding tax may be creditable |
| Money you send to family abroad | No | No Canadian tax; it is a personal transfer of after-tax money |
The T1135 threshold
Based on total cost of specified foreign property, not current value, and measured at any point in the year. Cross CAD 100,000 for a single day and the form is due.
Foreign tax credits
Tax withheld abroad on interest, dividends, or rent can usually be credited against the Canadian tax on that same income, up to treaty limits. Keep the foreign tax statements.
Your first year is a stub
You report worldwide income only from your residency date. Pre-arrival world income is still asked for, because it is used to calculate benefits and credits.
Living in two currencies
If part of your income or savings stays abroad, the exchange rate becomes a silent part of your finances. A ten percent move against you is the same as a ten percent pay cut on that portion.
MATCH
Currency to spending
Hold money in the currency you will actually spend it in. Canadian expenses belong in Canadian dollars.
SPREAD
Convert in tranches
Moving a large sum in several transfers averages your rate instead of betting on one day.
RECORD
Save every rate
Use Bank of Canada rates on your return, either transaction-date or annual average, applied consistently.
WATCH
Gains on currency
Currency gains above CAD 200 a year on personal transactions can be a taxable capital gain.
Your cross-border checklist
- 01
Fix your residency date
Write down when you established Canadian residential ties, and keep the evidence: lease, job start, arrival stamp, family move.
- 02
Value everything you own abroad
Accounts, shares, property, and business interests, valued on your residency date in the local currency and in Canadian dollars.
- 03
Update your foreign bank
Give them your Canadian address and residency status before they discover it themselves and restrict the account.
- 04
Check the CAD 100,000 line
Add up the cost of your foreign property. If you are anywhere near the threshold, plan for the T1135 with your return.
- 05
Read the treaty for your country
Check how pensions, property, and dividends are handled between Canada and your home country before you move any of them.
- 06
Choose your transfer route
Pick one provider for large transfers and one for routine remittances, then compare the all-in cost against your bank once a year.
- 07
Get cross-border advice once
One session with a professional who knows both systems, in your first year, is cheaper than fixing several years of returns.
Common questions about money across borders
Can I keep my bank account in my home country after moving to Canada?
Yes. Canada has no rule against holding accounts abroad. What changes is reporting: if you are a Canadian tax resident, interest and investment income earned in that account is part of your worldwide income and must be reported on your Canadian return in Canadian dollars, even if the money never reaches Canada.
What is the CAD 100,000 foreign property rule?
If the total cost of your specified foreign property is more than CAD 100,000 at any point in the year, you must file form T1135 with your return. It is a reporting form, not a tax. The threshold is based on cost, not current value, and it counts foreign accounts, foreign shares, foreign rental property, and debts owed to you, but not a home you use personally or foreign pension plans.
Do I pay Canadian tax on money I send to my family abroad?
No. Sending your own after-tax money to family is a gift or a personal transfer, not income for anyone in Canada, and there is no Canadian gift tax. The receiving country may have its own rules, and your bank may ask about the source of funds for larger amounts.
Is there a limit on how much money I can send out of Canada?
There is no legal cap. Transfers of CAD 10,000 or more are reported by the financial institution to FINTRAC as part of anti-money-laundering rules, and connected smaller transfers within 24 hours can be aggregated. Reporting is routine and does not create a tax bill; it is simply a record.
Do I need to declare money I bring into Canada?
Bringing CAD 10,000 or more in cash or monetary instruments across the border must be declared to CBSA. Wire transfers into a Canadian bank account are already recorded by the bank. Keep documents showing where inherited or sale proceeds came from, since banks routinely ask.
How is a foreign pension taxed in Canada?
A Canadian tax resident generally reports foreign pension income on their Canadian return. A tax treaty may reduce or exempt part of it, or give the source country the first right to tax. Treaty treatment differs by country and pension type, so check the specific treaty or get professional advice.
Should I keep investing in my home country or move it to Canada?
It depends on withholding tax, treaty coverage, currency risk, and how the product is treated in Canada. Some foreign funds are treated as offshore investment funds and taxed unfavourably, and some accounts that are tax-free at home are fully taxable here. Get cross-border advice before moving large amounts.
What exchange rate do I use on my Canadian tax return?
CRA accepts the Bank of Canada rate for the transaction date, or the annual average rate when income is earned steadily through the year. Use one method consistently and keep the rates you used with your records.
Keep going
Official sources
General information, not personal tax advice
Cross-border situations turn on treaty wording, asset types, and dates. Thresholds and rules change. Use current CRA sources and hire a qualified cross-border professional when your facts span two countries.