Which Assets Are Not Deemed Sold When You Leave Canada?

How Canadian real estate, RRSPs and similar assets are treated

Scott Tang, CPAUpdated 2026-11-052026 rules4 min read

When you leave, most assets are "deemed sold", but a few types are not: mainly Canadian real estate, RRSPs and pensions, and TFSAs, plus property that short-term residents owned before landing. Not being included doesn't mean no tax — when these assets are actually sold or withdrawn later, they are taxed under the non-resident rules.

Canadian real estate

Not deemed sold when you leave; when you sell later, you go through the section 116 clearance process

RRSP, RRIF

Not deemed sold; non-resident tax is withheld when you take money out later

60 months

If you lived in Canada for no more than 60 months in total in the 10 years before leaving, property you brought with you when you landed (or inherited afterwards) is generally not included

An option

You can also elect to treat Canadian real estate as deemed sold — for example, if it has an unrealized loss, that loss can offset the gains on your other deemed dispositions

Assets not deemed sold: what happens later

Asset	When you leave Not deemed sold	When actually dealt with later Non-resident rules apply
Your home in Canada (lived in or rented out)	✓	—When you sell, get a section 116 clearance certificate; rent is subject to non-resident withholding or a section 216 return
RRSP, RRIF	✓	—Withdrawals generally have 25% withheld (the treaty may reduce this); a section 217 election may be worth considering
Company pensions, CPP, OAS	✓	—Non-resident withholding applies when you receive them
TFSA	✓	—You can keep it and it grows tax-free; contributions made while you are a non-resident are taxed at 1% a month
RESP	✓	—Generally can be kept, but there are limits on grants and withdrawals
Business property used through a permanent establishment in Canada	✓	—Dealt with under the rules for businesses carried on in Canada
Property a short-term resident owned before landing	✓If 60 months or less	—Under your new country's rules

Your home in Canada (lived in or rented out)

🛡️ When you leave: ✓
🔜 When actually dealt with later: —When you sell, get a section 116 clearance certificate; rent is subject to non-resident withholding or a section 216 return

RRSP, RRIF

🛡️ When you leave: ✓
🔜 When actually dealt with later: —Withdrawals generally have 25% withheld (the treaty may reduce this); a section 217 election may be worth considering

Company pensions, CPP, OAS

🛡️ When you leave: ✓
🔜 When actually dealt with later: —Non-resident withholding applies when you receive them

TFSA

🛡️ When you leave: ✓
🔜 When actually dealt with later: —You can keep it and it grows tax-free; contributions made while you are a non-resident are taxed at 1% a month

RESP

🛡️ When you leave: ✓
🔜 When actually dealt with later: —Generally can be kept, but there are limits on grants and withdrawals

Business property used through a permanent establishment in Canada

🛡️ When you leave: ✓
🔜 When actually dealt with later: —Dealt with under the rules for businesses carried on in Canada

Property a short-term resident owned before landing

🛡️ When you leave: ✓If 60 months or less
🔜 When actually dealt with later: —Under your new country's rules

Short-term residents: a rule many newcomers miss

60 months or less in the 10 years before leaving

In the 10 years before you leave, you were a Canadian resident for no more than 60 months in total

Property you owned before landing, or inherited after becoming a resident

Generally not deemed sold when you leave

Property bought after landing is still included

More than 60 months

This exemption doesn't apply

Most assets are deemed sold

Your cost is the market value on the day you landed

This is where your cost-base schedule on arrival comes in

Your Canadian home: what to consider before you leave

1
Sell or keep
If you keep it, you'll sell later as a non-resident and need a clearance certificate
2
Keep and rent out
Rent after you leave follows the non-resident rules
3
Principal residence exemption
Years as a non-resident generally can't count as principal residence years
4
Selling after leaving
Only the years you were a resident can be exempt
5
Run the numbers
Selling before you leave and selling after can give very different results

Points to watch

Selling your home after you leave
Years after you leave generally can't be designated as principal residence years. Sell before you leave, or first work out how much can be exempt.
RRSP: withdraw before or after you leave
After you leave, non-resident tax is withheld (generally 25%, which the treaty may reduce); while you're still in Canada, withdrawals are taxed at graduated rates. Which works out better depends on the amount.
The list of properties has its own rules
The T1161 exclusions are not the same as the departure tax exclusions: Canadian real estate and similar property is not deemed sold but generally must be listed; cash, registered plans such as RRSPs, certain property of short-term residents, and personal-use items worth less than $10,000 each don't need to be listed.

How Sheng Qian CPA can help

What's included and what isn't
Based on your assets and how many years you've been in Canada, we list what is and isn't included when you leave.
Your Canadian home and RRSP first
Selling or keeping before you leave, withdrawing from the RRSP before or after: we work out each option.
After you leave
Section 216 returns for rent, section 116 clearance for a sale, RRSP withdrawals. For prices, see "What Sheng Qian CPA Can Do for Newcomers and People Leaving Canada: Support on Arrival and on Departure" in this series.

Sources

Disclaimer

This article is general information only and is not tax advice. Every person's situation is different; please consult a CPA about your specific arrangements. Service fees are as set out in our written quote.