Returning to Canada After Living Abroad
Taxes when you move back to Canada: residency date, fresh cost base for property, unwinding departure tax, TFSA and RRSP room, benefits and T1135.
The short version
- When you move back to Canada, you become a resident again from the day you re-establish ties: a home, a spouse or kids here. Your first return reports world income from that date only.
- Most property you bring back is treated as bought at its market value on your return date, so Canada only taxes growth from then on.
- If you paid departure tax when you left and still own the same property, an election can unwind it and get the tax back.
- TFSA room you earned before leaving is still there, and new room starts again from the year you return. RRSP room only grows from Canadian earned income.
- Apply again for the Canada child benefit and the Groceries and Essentials Benefit; they don't restart on their own.
Returning to Canada After Living Abroad
Coming home after years abroad is mostly about finding where you left the winter boots. The tax side is easier than leaving was: no departure tax on the way in, a fresh cost base for most of what you bring, and a short list of forms. The traps are in the details: assets abroad you now have to report, a pension from another country, and benefits that need a new application. Here's the checklist.
Your First Year Back
| Item | What happens |
|---|---|
| Residency date | The day you re-establish significant ties; enter it on your return |
| Income before that date | Not taxed in Canada; reported for benefit calculations |
| Income after that date | World income, with foreign tax credits for tax paid abroad |
| Personal credits | Prorated for the part of the year you were resident |
| Property brought back | Deemed bought at market value on the return date, with exceptions |
Ties and residency: tax residency. The return itself works like a newcomer's: first tax return in Canada. Foreign income after you're back: foreign income after moving.
Moving back to Canada this year?
Tell the assistant when you left, when you're returning, what you own here and abroad, and whether you paid departure tax. It lists what to file, what to elect, and what you can claim.
Property You Bring Back
- Foreign property, shares and crypto: get a new cost equal to market value on your return date. Keep proof of the values; see property you owned before moving.
- Canadian real estate you kept: no reset. Its cost is still what you paid, and the years you were away can't be covered by the principal residence exemption; see the principal residence exemption.
- Departure tax unwinding: if you were taxed on a deemed sale when you left and still own that property when you come back, you can elect to reverse it, with the election filed with your return for the year you come back. This often refunds tax, or releases security you posted; see leaving Canada.
- Foreign pensions and retirement accounts: special rules depend on the plan and the treaty.
Registered Accounts When You Return
| Account | What to know |
|---|---|
| TFSA | Room kept from before; no room accrued for years you were non-resident; new room from the year you return. See TFSA contribution room. |
| RRSP | Room comes from Canadian earned income; foreign salary while away usually created none. See RRSP contribution limit. |
| FHSA | You must be a Canadian resident to open one; first-time buyer rules look at your home ownership history; see FHSA. |
| RESP | Grants need a resident beneficiary; payments resume once the child is resident again. |
Returning Resident Checklist
- Update your address and status with CRA; see changing your address.
- Apply for benefits: the Canada child benefit on form RC66 and the Groceries and Essentials Benefit, with a statement of world income (RC151 or RC66SCH); see Canada child benefit.
- Report foreign assets over $100,000 on form T1135 from your second year back; see form T1135.
- Bring foreign tax records for the foreign tax credit; see foreign tax credits.
- Tell your old country you've left, so it stops taxing you as a resident.
Returning to Canada Questions
When do I become a Canadian resident again for tax?
Usually on the day you re-establish significant residential ties in Canada, such as a home, a spouse or common-law partner, or dependants here. That date goes on your return, and only world income from that date is taxed in Canada.
Do I pay tax on assets I bring back to Canada?
Not on growth before you return. Most property is treated as acquired at its fair market value on your return date. Canadian real estate you kept while away is an exception: its original cost still applies.
Can I get back the departure tax I paid when I left?
Often yes. If you still own the property that was taxed when you left, you can elect to unwind the deemed sale for that property in the year you become resident again.
Does my TFSA room come back when I return?
Room you had before leaving is still there, and you get new room from the year you become resident again. No room is added for the years you were a non-resident.
Do I have to reapply for the Canada child benefit after moving back?
Yes. Apply with form RC66 or through My Account and give CRA your income for the period you were away.
Sources: CRA, Newcomers to Canada (including returning residents); Income Tax Act, subsections 128.1(1) and 128.1(6). Checked October 2026. The unwinding election has conditions and deadlines not covered in full. Foreign pension and retirement plan rules depend on the country and plan.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.