Canada Tax, CPP, and OAS for Retirees in Thailand

Reviewed by Greg Berryman, 7 September 2026

Canada's tax residency test doesn't count days the way Thailand's does, and there's a departure step none of the other four nationalities on this site have to deal with. The pension picture, once you get to it, is actually simpler than most.

Residency: a facts-and-circumstances test, not a day count

Canada determines residency mainly through significant residential ties, not a day threshold. The main ties are a home available to you in Canada, a spouse, partner, or dependents remaining there, and other personal or social ties, a driver's licence, health card, or Canadian bank accounts.

A 183-day count exists too, but only as a secondary "deemed resident" test for people who don't meet the factual ties test. The CRA can and does reassess years after someone leaves if ties were kept open. Once you're genuinely non-resident, Canada taxes you only on Canadian-source income, not worldwide income.

The departure tax, a step the other countries don't have

When you cease Canadian residency, the CRA deems you to have sold your worldwide property at fair market value the day you leave, and immediately reacquired it at the same value. Any accrued capital gain becomes taxable in your departure year, even though nothing was actually sold.

Asset Departure tax
Investment portfolio, Canadian and foreign Applies
Canadian real estate Excluded
Canadian business assets Excluded
RRSP, TFSA, RESP, RRIF Excluded
  • The capital gains inclusion rate is 50%. A proposed increase to two-thirds from the 2024 federal budget was cancelled in March 2025, so 50% remains the current rate.
  • If you can't liquidate assets to cover the tax, you can elect to post security with the CRA instead of paying immediately.

This is a real planning step, not paperwork. It applies to your global investment portfolio, not just Canadian holdings.

CPP and OAS: simpler than the UK or Australian equivalents

Under Article 18 of the Canada-Thailand tax treaty, pensions and similar payments for past employment that arise in Canada and are paid to a Thai resident are taxable only in Canada. Unlike the UK treaty, which splits government pensions from the State Pension and private pensions, Canada's treaty doesn't carve out a separate category. In practice, Thai tax specialists apply this to CPP, OAS, and private or employer pensions alike, keeping the full taxing right in Canada and out of Thailand's hands entirely.

That doesn't mean the payment arrives untouched. Canada applies its own non-resident withholding tax, generally 25%, since the treaty doesn't cap the rate for pensions the way it does for dividends and interest.

Swipe across to see all columns.

CPP OAS
Based on Contributions Canadian residency
Residency requirement None 20 years of Canadian residence after age 18
Living in Thailand Follows you, however long you lived in Canada Stops six months after you leave if you are under 20 years. No agreement with Thailand to help meet it
Where it is taxed Canada only, with 25% non-resident withholding Canada only, with 25% non-resident withholding
Clawback None Recovery tax applies to non-residents on the same basis as residents, once net world income passes roughly the mid-$90,000s CAD

The visa angle

Canada is on the list of nationalities eligible for Thailand's O-X long-stay visa, along with Australia, the UK, and the US. The DTV and LTR are the other established routes, and all five are compared on the visa options page.

What this doesn't cover

This page covers Canadian residency, the departure tax, and how CPP and OAS are taxed. The Thailand tax overview covers what Thailand does with money once it's remitted, relevant for private pension and investment income that isn't shielded by Article 18.

Not tax advice

Deemed disposition calculations depend on your specific asset base and cost history, and the OAS residency count has exceptions for time spent working abroad for a Canadian employer. Talk to a cross-border tax professional before you finalise a departure date.

Not sure which city fits, or whether the numbers work at all? Take the free assessment.

Sources

This page is built on published Canadian government rules and the treaty text itself, not personal experience. Here's where each claim came from: