Living Abroad? Know These Rules


Many Canadians are surprised to learn that TFSA rules change when you become a non‑resident of Canada for tax purposes


Residency Matters

  • Contribution Restriction – TFSA contributions are not permitted while you are a non-resident of Canada
  • Cumulative Contribution Room – TFSA contribution room does not accumulate during periods of non‑residency
  • Unintentional Contribution – Contributions made could lead to overcontribution
  • Penalty for Overcontribution – CRA charges a 1% penalty for each month of excess TFSA contribution


After returning to Canada, before making TFSA contributions confirm your tax residency status and available contribution room to avoid unexpected penalties