How to Keep Your CPP and OAS as a Non-Resident

One of the most common concerns among Canadians planning to retire abroad is what happens to their CPP and OAS. The short answer: you keep both. You earned them, and leaving Canada does not erase that entitlement.

The longer answer is that how those payments are taxed — and how much you actually receive — depends on where you move, the tax treaty between Canada and your new country of residence, and how you have structured your overall financial situation.

How CPP Works for Non-Residents

Your CPP entitlement is based entirely on your contributions while working in Canada. Emigrating does not affect the amount you have earned — only the taxation of payments once you receive them.

As a non-resident, CPP payments are subject to Canadian withholding tax. The default rate is 25%. However, Canada has tax treaties with over 90 countries that reduce this rate — most commonly to 15% or 25% depending on the treaty and the type of payment.

For example:

• Canada-Mexico treaty: 15% withholding on CPP
• Canada-Portugal treaty: 15% withholding on CPP
• Canada-Costa Rica: no treaty — 25% default applies
• Canada-USA: 15% withholding on CPP for US residents

To apply the reduced treaty rate, you must file NR5 form with Service Canada and CRA to establish your non-resident status and applicable treaty rate.

How OAS Works for Non-Residents

OAS eligibility for non-residents requires that you:

• Are 65 or older
• Were a Canadian citizen or legal resident on the day before you left Canada
• Lived in Canada for at least 20 years after age 18

If you have fewer than 20 years of Canadian residence after age 18, you may still qualify under a social security agreement between Canada and your new country — these agreements allow certain foreign pension periods to count toward the 20-year minimum.

Like CPP, OAS payments to non-residents are subject to withholding tax at 25% (reduced by applicable treaty). OAS is also subject to the clawback if your worldwide income exceeds the threshold — approximately $93,000 in 2026. This threshold applies to non-residents as well as residents.

Applying for CPP and OAS from Abroad

You can apply for CPP and OAS while living outside Canada. Applications are processed through Service Canada and can be submitted by mail or online. You will need to provide:

• Proof of identity and Canadian Social Insurance Number
• Your Canadian mailing address or a foreign address (Service Canada handles both)
• Banking information for direct deposit — Canadian or foreign bank accounts are accepted
• NR74 form (Determination of Residency Status) or equivalent documentation establishing non-resident status

Payments can be made in Canadian dollars to a Canadian bank account, or in some cases converted to the local currency of your country of residence through Service Canada’s international payment arrangements.

The Timing Question: When Should You Start?

The CPP timing decision does not change fundamentally because you are a non-resident. The same breakeven analysis applies — starting at 60 versus 65 versus 70 — and the same considerations around health, other income sources, and longevity apply.

What changes is the tax context. As a non-resident, CPP income is subject to withholding tax rather than the full Canadian marginal rate. In some cases, withholding tax is lower than the rate you would face as a Canadian resident — which can slightly change the after-tax calculation.

Additionally, if your new country of residence taxes CPP income, you need to understand the interaction between Canadian withholding tax and foreign income tax. Most tax treaties include provisions to prevent double taxation — either through a foreign tax credit in your new country or an exemption on income already taxed in Canada.

The US Snowbird Exception

For Canadians who spend significant time in the United States — including snowbirds who may eventually establish US residency — the Canada-US tax treaty is particularly important.

Under the treaty:

• CPP and OAS paid to US residents are taxed only in the US — not subject to Canadian withholding
• This means if you are a US tax resident, your CPP and OAS are reported as income on your US tax return rather than having Canadian withholding applied
• This can be advantageous or disadvantageous depending on your US marginal rate compared to the Canadian withholding rate

The Canada-US treaty is complex and the rules around residency determination — particularly the 183-day rule and its interaction with Canadian provincial health coverage — require careful attention.

OAS Deferral: Still Worth Considering?

OAS can be deferred from age 65 to age 70 for a 36% increase in the monthly benefit. This decision is worth analyzing as a non-resident just as it is for Canadian residents. Key considerations:

• If you have other Canadian-source income (RRIF withdrawals, rental income) in your early retirement years, deferring OAS keeps your income lower and may reduce withholding tax on other payments
• A larger OAS benefit is a larger guaranteed income for life — particularly valuable if you are living in a country with a weaker currency relative to the Canadian dollar
• OAS clawback at $93,000 applies to non-residents — if your worldwide income is near that threshold, deferring OAS (and thus having a larger benefit arrive when your other income is lower) can reduce clawback risk