How Canada citizenship by investment works
Thinking of applying for a Canadian passport? Read our guide on the Canada citizenship by investment programme, including the requirements, costs and benefits.
Can I keep my Canadian bank account if I move abroad?
If you’ve been living in Canada but are planning to leave, you’ll need to know what to do about your Canadian bank account.
Whether you’re a British expat heading back to the UK or you’re settling in another country, you’ll need to know whether or not you’ll be permitted to keep your Canadian bank account when you move abroad.
We’re here to help, with a handy guide covering all the important info you need to know. So, let’s dive right in.
Can I keep my Canadian bank account after leaving Canada?
Yes, you can keep your Canadian bank account open when moving abroad. However, it may depend on which bank you have an account with.
Many major banks in Canada will allow you to keep your account as a foreign non-resident.
But there is an important thing you need to know. It’s a requirement to let the bank know that you’ll no longer be a resident of Canada, and provide your new overseas address (and the date of your move).¹
From that point onwards, the bank is legally required to apply a withholding tax rate of 25% to the interest in your account. This is a type of non-resident tax.²
If you’d rather close the account and avoid this tax, just make sure to arrange a money transfer for any remaining balance to a new account first.
And if you’re worried about not having a way to send and receive Canadian dollars (CAD), remember that there are alternatives to banks available.
For example, you can open an international Wise account, which lets you manage your money in 40+ currencies including CAD, USD and GBP. This makes it an easy, convenient and truly global alternative to having a local bank account.
How to manage your Canadian bank account from abroad
You should be able to manage your Canadian account remotely in much the same way as when you were living in the country. Just make sure you’re signed up for online and/or mobile banking (if available), so you can check in on your accounts when you need to.
And so you can receive statements and other documents in the post, double-check that the bank has your new overseas address on file.
You’ll also need to keep an eye on the balance in the account, to make sure it’s enough to cover any fees.
Many bank accounts in Canada have monthly fees, which are only waived if you meet certain conditions - i.e. maintaining a minimum balance.
If you’re leaving and may not use the account much, you may no longer meet the criteria to have the fees waived. This could come as an unpleasant surprise if you aren’t prepared.
Alternatives to keeping a Canadian bank account
Decided to close your Canadian bank account instead? You’ll need to research some alternative options. One obvious solution is to get started on opening a new local bank account in your new country.
You can also see if your existing Canadian bank operates in the country you’re moving to, or offers any international bank accounts there. You may be able to make a smooth transition over to one of its accounts.
There are also a wide range of digital banks, money apps and money services providers available. A few popular examples are Wise, Revolut and N26. All are set up to work internationally and let you do everything using just your smartphone.
Wise account – a brilliant alternative to a bank account?
While you’re considering alternative accounts and providers, make sure to check out the Wise account. It’s not a bank account, so it doesn’t provide the same protections that customers might expect from conventional banks, such as interest on savings. However, it does offer some similar features. It’s a fantastic alternative to your Canadian bank account, especially if you need to spend overseas or send payments between countries.
With Wise, there are no sign up or monthly fees to pay. You’ll get a powerful account for managing your money in 40+ currencies, including making international transfers for low fees* and mid-market exchange rates.
For a one-time cost of just £7, you can also get a Wise debit card which has no foreign transaction fees for spending abroad, just a small conversion fee for cross-currency transactions.
Here are the main benefits for using Wise: |
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Sources used:
- Government of Canada - Leaving Canada (emigrants)
- Government of Canada - Non-Residents and Income Tax 2023
Sources last checked on date: 17-Dec-2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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