Andy asked in Business & FinanceTaxesCanada · 7 years ago

In Canada, do RRSPs have Tax ramifications if a retiree lives abroad?

I know that there are Tax ramifications for Canadians living abroad, whether working or retiring in another country & collecting a pension, but what about a pension in the form of a RRSP??

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1 Answer

  • Fred S
    Lv 7
    7 years ago
    Favorite Answer

    If you're a non-resident, you will have non-resident tax withheld from any RRSP payments. The percentage depends on which country you're a resident of, and what treaty they have with Canada. If you're in the US, and the payments are periodic (like from a RRIF), the withholding tax is 15%.

    You then have to declare this income to your country of residence, which may impose additional taxes on the income.

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