Hi Todd,
Thank you for your message.
Based on the facts you provided, it may still be possible to file your 2025 Canadian return as a factual resident of Canada, since you appear to have maintained a number of ongoing residential ties with Canada, including your mailing address, driver’s licence, OHIP coverage, bank accounts, credit cards, RRSPs, TFSA, non-registered investments, passport, and cell phone plan. CRA states that residency is determined by reviewing all of the relevant facts, including residential ties with Canada and the continuity and purpose of your stay abroad. CRA also notes that if you leave Canada but keep significant residential ties, you are usually considered a factual resident rather than an emigrant.
That said, there is an important treaty issue here. CRA also states that even where someone is otherwise a factual resident of Canada, if that person has established ties in a treaty country and is considered a resident of that country under the treaty, they may instead be treated as a deemed non-resident of Canada for Canadian tax purposes. Portugal’s own government guidance indicates that an individual can be treated as resident there where they remain for more than 183 days, and you indicated that you became a Portuguese tax resident effective January 1, 2025.
So, the answer is:
1. Can you file as a factual resident for 2025?
Possibly yes, but not automatically. Your continuing Canadian ties support factual residency. However, because you also appear to be a Portuguese tax resident for 2025, the Canada-Portugal tax treaty must be reviewed to determine whether you remain resident in Canada for treaty purposes or become a deemed non-resident of Canada. CRA’s published guidance is clear that treaty residency can override factual residency in this situation.
2. What are the treaty implications?
The key issue is whether, under the treaty tie-breaker rules, your stronger residential and personal connections for 2025 are considered to be in Canada or Portugal. In practice, this usually turns on matters such as where your permanent home is, where your closer personal and economic relations are centered, and the overall pattern of your living arrangements. Based on the facts shared so far, there is enough uncertainty that I would not want to give a definitive answer without a fuller review. CRA also provides Form NR73 where a taxpayer wants CRA’s opinion on residency status after leaving Canada.
My preliminary view:
You have a reasonable argument for continued Canadian factual residency for 2025 based on your retained Canadian ties. However, your Portuguese tax residency beginning January 1, 2025, creates a genuine treaty-residency question, so the filing position should be reviewed carefully before the 2025 return is prepared. (
If you would like, I can assist with a formal residency review for 2025 and advise on the most supportable filing position.
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