What happens to a person’s FHSA savings if they are no longer a resident of Canada?
If you are no longer a resident of Canada after opening a First Home Savings Account, you can continue to contribute as usual.
However, you will no longer be eligible for tax-free withdrawals from your FHSA account for home purchases.
As a non-resident, any withdrawals from the FHSA will be taxable and subject to a 25% withholding tax, unless your country of residence has a tax treaty with Canada that entitles you to a lower tax rate or tax exemption.
Who can become a non-resident of Canada?
If your work permit or study permit expires and you do not renew it or do not have permanent residence in Canada, you will become a non-resident of Canada.
If you do not meet the physical requirements to maintain your permanent residence in Canada, you become a non-resident of Canada.
If you stay in Canada for less than 183 days in a particular tax year; If you renounce the status of permanent residence or Canadian citizenship, then you will become a non-resident of Canada.
RCO NEWS