Expat Taxes in Canada

[!WARNING] Canada has brutal taxes, a severe housing crisis, and zero geo-arbitrage benefits.

The 183-Day Rule & Factual Residency

The Canada Revenue Agency (CRA) determines tax residency based on your "residential ties."

• The Rule: If you spend 183 days or more in Canada, you are deemed a tax resident. However, even if you spend less time, if you lease an apartment, open bank accounts, or bring your spouse, the CRA can declare you a "factual resident."
• Worldwide Taxation: Tax residents are taxed on their worldwide income.
• The Rates: Canada uses a combined Federal and Provincial tax system. In high-tax provinces like Quebec, Nova Scotia, or Ontario, the top marginal tax rate easily exceeds 53% for high earners.

The "Departure Tax"

If you live in Canada, build wealth, and then decide to move to a tax haven (like Dubai or Panama) and sever your tax residency, Canada hits you with a "Departure Tax." You are forced to pay capital gains tax on the unrealized gains of your global assets (like stocks) as if you had sold everything the day you left.