Factual Residency Determination

Question

91 viewsApril 22, 2025

0

Todd Hogan (anonymous) Posted April 22, 2025

Hi Allan,

I left Canada to stay in Portugal in May of 2024 to see if living abroad works for me. I havent made a decision one way or the other, but need clarity on my residency status to file my Canadian taxes.

Ties to Canada:
Maintain a mailing address, two Canadian credit cards, multiple Canadian investments including RRSP, TFSA, Non-registered investment accounts, two Canadian bank accounts, Canadian drivers license and passport. Registered a two-year OHIP extension before I left.

Ties in Portugal:
1 bank account
Rental lease for an apartment
Private health insurance

Based on this, am I corrrect in assuming that I am considered a factual resident of Canada for tax purposes?

Thanks,
Todd

1 Answer

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score 0 · Answer 1 · 2025-04-22T19:33:00+00:00

Hi Todd,

Thank you for reaching out and providing the details of your situation.

Based on the information you’ve shared, it appears that you continue to maintain significant residential ties to Canada, including a Canadian mailing address, credit cards, RRSP, TFSA, non-registered investments, bank accounts, driver’s license, passport, and extended OHIP coverage. These ties strongly suggest that you are currently a factual resident of Canada for tax purposes, even though you are temporarily residing in Portugal.

Although you have established some ties in Portugal—a local bank account, a rental lease, and private health insurance—these are not yet sufficient to establish Portugal as your new country of permanent residence. Since you are still exploring the idea of living abroad and have not yet committed to a permanent move, the Canada Revenue Agency (CRA) would likely continue to view you as a resident for tax purposes.

📌 Important Note:
Once you make a permanent move to Portugal and sever your primary ties to Canada, you may become a deemed non-resident of Canada for tax purposes from that date forward. This would require filing a T1 Departure Return, and you would then only be taxed in Canada on Canadian-source income going forward.

Factual Residency Determination

1 Answer

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