Moving to Dubai from Canada
Severing residential ties, Canadian departure tax and the Canada-UAE tax treaty for Canadians relocating to Dubai.
Canada has a tax treaty with the UAE, and many Canadian professionals and founders now live in Dubai. When you leave Canada, the departure tax treats you as having sold most of your property, so it is worth planning a year ahead.
At a glance
- Tax treaty: Canada and the UAE have a double tax agreement.
- Becoming non-resident: you need to sever your residential ties, such as your home, your spouse or partner and dependants living in Canada.
- Departure tax: on leaving, you are treated as having sold certain property, such as shares, at fair market value, and any gain is taxed on your final return.
- Reporting: if the total value of property you own when you leave is more than C$25,000, you file Form T1161.
- Canadian real estate: Canadian real property is not part of the deemed disposal but remains taxable in Canada when sold.
Planning the move
List your assets and their values before you go, decide whether to pay the departure tax or post security to defer it, and decide what to do with your Canadian home. Registered plans such as RRSPs and TFSAs need separate attention, because their treatment changes once you are non-resident.
Your Canadian company
If you own a Canadian private company, decide who will manage it and how you will be paid from it after the move. Treaty and withholding tax rules apply to payments made to you in the UAE.
How Imperial Group helps
- A review of your residence position before you move, so you know when your home-country tax exposure actually ends
- The right UAE structure for your business: free zone, mainland or a holding company, with real substance
- Company setup, visas, Emirates ID and bank account opening support
- UAE tax residency certificate, corporate tax and VAT registrations from day one
- Ongoing accounting, tax filings and a single point of contact for everything in the UAE
Sources
This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.
Talk it through with us
Tell us where you are and what you are planning. You will hear back from the team who will do the work, not a sales desk.