Does CPP continue to be paid if I move abroad permanently?

Yes — Canada Pension Plan payments continue to eligible recipients regardless of where they live in the world. There is no residency requirement to continue receiving CPP. When you become a non-resident of Canada, Service Canada will apply a 25% non-resident withholding tax to each payment unless you file an NR301 form to claim a reduced treaty rate. Countries with a 15% treaty rate include Mexico, Portugal, Spain, Germany, the Netherlands, Italy, and the United States. Countries without a comprehensive income tax treaty (including Costa Rica, Panama, Ecuador, the Dominican Republic, Colombia, and Belize) apply the full 25% withholding. The withheld amount may be recoverable through a foreign tax credit in your destination country if you file a local income tax return there.

What happens to OAS when I move abroad?

Old Age Security (OAS) continues to be paid to former Canadian residents who have retired abroad, provided they meet the minimum residency requirement: at least 10 years of Canadian residency after age 18 for non-residents (vs 40 years for full OAS inside Canada). If you spent fewer than 40 years in Canada, your OAS may be prorated. Like CPP, OAS faces 25% non-resident withholding tax without a treaty, or 15% for treaty countries. Importantly, OAS does NOT require you to remain in Canada — but the Guaranteed Income Supplement (GIS) DOES. GIS ceases the month after you have been outside Canada for more than 6 months. If your OAS is top-heavy with GIS (lower-income retirees), this is a material budget planning consideration.

Will my Ontario Teachers', OMERS, or HOOPP pension continue if I retire abroad?

Yes — defined benefit (DB) pension plans like Ontario Teachers', OMERS, HOOPP, and the federal Public Service Pension Plan continue to pay retirees internationally. These are contractual obligations that follow you regardless of where you live. The practical steps before departure: contact your plan administrator to update your direct deposit banking details (you'll typically need a Canadian bank account that can forward internationally, or provide foreign bank wire details if supported), confirm the withholding tax treatment as a non-resident, and file an NR301 or equivalent form to claim any applicable treaty rate. Processing international bank transfers takes 4–6 weeks — do not wait until you've already moved.

What is the NR301 form and when do I need it?

Form NR301 (Declaration of Eligibility for Benefits Under a Tax Treaty for a Non-Resident Person) is a CRA form that Canadian pension payers require to apply a reduced treaty withholding rate on pension payments to non-residents. Without an NR301 on file, payers default to the 25% statutory withholding rate — even if you are entitled to a lower rate under a tax treaty. For CPP and OAS, you file NR301 with Service Canada. For DB pensions, you file it with your plan administrator. The form must confirm your residency in a treaty country and your eligibility under that treaty. It typically remains valid for 3 years or until your situation changes. File before you depart, not after your first reduced-amount payment arrives.

What is the difference between withholding tax on my pension and local income tax in my new country?

They are two separate obligations that may or may not offset each other depending on your destination. Canadian non-resident withholding tax is withheld at source by Service Canada or your pension administrator — it is tax paid to Canada. It is not the same as the income tax you may owe in your new country of residence. Whether Canada's withholding reduces your local income tax depends on whether your destination country has a tax treaty with Canada that provides foreign tax credits, and on the destination country's domestic tax rules. In Mexico, for example, a qualified retiree may be able to credit the 15% Canadian withholding against their Mexican income tax obligation, potentially resulting in zero additional tax owed to Mexico on their Canadian pension. In countries without treaties (Ecuador, Panama, Costa Rica), you may end up paying Canadian withholding and then also owing local income tax on the same pension income, depending on local rules. This is why tax advice from a cross-border specialist is important before finalizing your retirement destination.

What happens to my military pension if I retire abroad?

Canadian Forces Superannuation Act (CFSA) and RCMP Superannuation pensions are administered by the federal government and continue to be paid internationally. The paying authority is the Director General Compensation and Benefits (DGCB) for military pensions and Public Services and Procurement Canada (PSPC) for RCMP pensions. Both require you to update your banking details well in advance of departure — the recommended timeline is 60 days before you leave Canada. You will need to provide international wire transfer details or maintain a Canadian bank account that can forward funds internationally. The same non-resident withholding rules apply: 25% default, or the applicable treaty rate with a completed NR301 on file.

Can I have my Canadian pension deposited directly to a foreign bank account?

For CPP and OAS, Service Canada supports international direct deposit to foreign bank accounts in many countries — including Mexico, the United States, most EU countries, and many others. You need to provide the IBAN (for SEPA countries) or SWIFT routing details for your foreign bank. Processing takes 4–8 weeks to establish. For countries where international direct deposit is not supported, Service Canada can send cheques — but these take weeks to arrive and involve currency conversion fees at local banks. Many Canadian expats maintain their Canadian bank account as a receiving account and use services like Wise (formerly TransferWise) or Scotiabank international to convert and transfer funds to their local bank efficiently. For DB pensions, contact your plan administrator directly — procedures and supported countries vary.

Does CPP continue to be paid if I move abroad permanently?

Yes — Canada Pension Plan payments continue to eligible recipients regardless of where they live in the world. There is no residency requirement to continue receiving CPP. When you become a non-resident of Canada, Service Canada will apply a 25% non-resident withholding tax to each payment unless you file an NR301 form to claim a reduced treaty rate. Countries with a 15% treaty rate include Mexico, Portugal, Spain, Germany, the Netherlands, Italy, and the United States. Countries without a comprehensive income tax treaty (including Costa Rica, Panama, Ecuador, the Dominican Republic, Colombia, and Belize) apply the full 25% withholding. The withheld amount may be recoverable through a foreign tax credit in your destination country if you file a local income tax return there.

What happens to OAS when I move abroad?

Old Age Security (OAS) continues to be paid to former Canadian residents who have retired abroad, provided they meet the minimum residency requirement: at least 10 years of Canadian residency after age 18 for non-residents (vs 40 years for full OAS inside Canada). If you spent fewer than 40 years in Canada, your OAS may be prorated. Like CPP, OAS faces 25% non-resident withholding tax without a treaty, or 15% for treaty countries. Importantly, OAS does NOT require you to remain in Canada — but the Guaranteed Income Supplement (GIS) DOES. GIS ceases the month after you have been outside Canada for more than 6 months. If your OAS is top-heavy with GIS (lower-income retirees), this is a material budget planning consideration.

Will my Ontario Teachers', OMERS, or HOOPP pension continue if I retire abroad?

Yes — defined benefit (DB) pension plans like Ontario Teachers', OMERS, HOOPP, and the federal Public Service Pension Plan continue to pay retirees internationally. These are contractual obligations that follow you regardless of where you live. The practical steps before departure: contact your plan administrator to update your direct deposit banking details (you'll typically need a Canadian bank account that can forward internationally, or provide foreign bank wire details if supported), confirm the withholding tax treatment as a non-resident, and file an NR301 or equivalent form to claim any applicable treaty rate. Processing international bank transfers takes 4–6 weeks — do not wait until you've already moved.

What is the NR301 form and when do I need it?

Form NR301 (Declaration of Eligibility for Benefits Under a Tax Treaty for a Non-Resident Person) is a CRA form that Canadian pension payers require to apply a reduced treaty withholding rate on pension payments to non-residents. Without an NR301 on file, payers default to the 25% statutory withholding rate — even if you are entitled to a lower rate under a tax treaty. For CPP and OAS, you file NR301 with Service Canada. For DB pensions, you file it with your plan administrator. The form must confirm your residency in a treaty country and your eligibility under that treaty. It typically remains valid for 3 years or until your situation changes. File before you depart, not after your first reduced-amount payment arrives.

What is the difference between withholding tax on my pension and local income tax in my new country?

They are two separate obligations that may or may not offset each other depending on your destination. Canadian non-resident withholding tax is withheld at source by Service Canada or your pension administrator — it is tax paid to Canada. It is not the same as the income tax you may owe in your new country of residence. Whether Canada's withholding reduces your local income tax depends on whether your destination country has a tax treaty with Canada that provides foreign tax credits, and on the destination country's domestic tax rules. In Mexico, for example, a qualified retiree may be able to credit the 15% Canadian withholding against their Mexican income tax obligation, potentially resulting in zero additional tax owed to Mexico on their Canadian pension. In countries without treaties (Ecuador, Panama, Costa Rica), you may end up paying Canadian withholding and then also owing local income tax on the same pension income, depending on local rules. This is why tax advice from a cross-border specialist is important before finalizing your retirement destination.

What happens to my military pension if I retire abroad?

Canadian Forces Superannuation Act (CFSA) and RCMP Superannuation pensions are administered by the federal government and continue to be paid internationally. The paying authority is the Director General Compensation and Benefits (DGCB) for military pensions and Public Services and Procurement Canada (PSPC) for RCMP pensions. Both require you to update your banking details well in advance of departure — the recommended timeline is 60 days before you leave Canada. You will need to provide international wire transfer details or maintain a Canadian bank account that can forward funds internationally. The same non-resident withholding rules apply: 25% default, or the applicable treaty rate with a completed NR301 on file.

Can I have my Canadian pension deposited directly to a foreign bank account?

For CPP and OAS, Service Canada supports international direct deposit to foreign bank accounts in many countries — including Mexico, the United States, most EU countries, and many others. You need to provide the IBAN (for SEPA countries) or SWIFT routing details for your foreign bank. Processing takes 4–8 weeks to establish. For countries where international direct deposit is not supported, Service Canada can send cheques — but these take weeks to arrive and involve currency conversion fees at local banks. Many Canadian expats maintain their Canadian bank account as a receiving account and use services like Wise (formerly TransferWise) or Scotiabank international to convert and transfer funds to their local bank efficiently. For DB pensions, contact your plan administrator directly — procedures and supported countries vary.

Reviewed on March 2026 by the Compass Abroad editorial team

Canadian Pension Abroad Checker

Check whether your CPP, OAS, OMERS, Teachers', HOOPP, PSPP, or military pension will continue to be paid when you retire abroad — and what withholding tax applies by destination country.

Canadian Pension Abroad Checker

Select your pension type and destination country to see payment eligibility, withholding tax, and direct deposit availability.

Pension Type

Destination Country

Monthly Pension Amount (CAD $)

Enter your gross monthly amount before withholding

✓Paid Abroad

Paid to non-residents in all countries. 25% withholding tax applies (15% with tax treaty).

Withholding Tax Breakdown

Gross monthly$1,200

Non-resident withholding (15% — treaty rate)−$180

Net monthly$1,020

Annual net (after withholding)$12,240

Canada-Mexico Income Tax Convention (2006)

File Form NR301 with Service Canada to claim the reduced treaty rate. Without it, 25% is withheld by default.

Direct Deposit Abroad

✓International direct deposit available — update banking details with your plan administrator before departure.

Withholding rates shown are for pension and annuity payments to non-residents under applicable tax treaties as of 2025. Rates may differ for lump-sum withdrawals or other payment types. File NR301 with Service Canada (CPP/OAS) or your pension plan administrator to claim reduced treaty rates. Always verify current rates with the CRA and your plan administrator before relocating.

Canadian Pension Abroad: Key Facts

CPP abroad: Paid to non-residents in all countries — no restrictions(Service Canada)
OAS abroad: Paid to non-residents if 10+ years of Canadian residency after age 18(Service Canada)
GIS abroad: STOPS after 6 months outside Canada — does not follow you abroad(Service Canada)
Default withholding tax: 25% on CPP/OAS for non-residents — no treaty required form(CRA)
Treaty withholding (Mexico, Portugal, Spain): 15% on CPP/OAS with completed NR301 form(CRA / OECD treaty network)
Defined benefit pensions (OMERS, HOOPP, Teachers, PSPP): Paid internationally — contact plan administrator to update banking(Plan administrators)
RCMP / Military pensions: Paid internationally — update banking 60 days before departure(DGCB / PSPC)
NR301 form: Required to claim reduced treaty withholding rate — file with plan administrator(CRA)

How Canadian Pensions Work for Non-Residents

The good news for Canadians planning to retire abroad: the major public pensions — CPP and OAS — follow you around the world. There is no residency requirement for a CPP or OAS recipient. You can retire to Mexico, Portugal, Costa Rica, Ecuador, or anywhere else and your payments will continue uninterrupted, directed to whatever bank account you designate.

The catch is withholding tax. As a Canadian non-resident, you are no longer subject to the same income tax rules as residents. Instead, Canada applies a non-resident withholding tax on Canadian-source income, including CPP, OAS, and defined benefit pension payments. The default rate is 25% — but Canada has signed tax treaties with many countries that reduce this to 15% for pension income.

To claim the reduced treaty rate, you must file Form NR301 (Declaration of Eligibility for Benefits Under a Tax Treaty) with Service Canada (for CPP/OAS) or your pension administrator (for DB plans). Without this form on file, the payer will default to 25% withholding — even if you are entitled to 15%. File this form before your departure, not after you notice your first payment is lower than expected.

The GIS (Guaranteed Income Supplement) is a critical exception: it does NOT follow you abroad. GIS is available only to OAS recipients who are residents of Canada with very low income. It ceases the month after you leave Canada for more than 6 months. For lower-income retirees who depend on GIS, this is a significant consideration when evaluating retirement abroad. Read our retirement budget calculator to model your income net of withholding.

Defined Benefit Pensions: OMERS, Teachers', HOOPP, PSPP, RCMP, and Military

Canada's large defined benefit pension plans — including OMERS (municipal employees), Ontario Teachers' Pension Plan, HOOPP (healthcare of Ontario), the federal Public Service Pension Plan (PSPP), RCMP Superannuation, and the Canadian Forces Superannuation Act (CFSA) — all continue to pay retirees regardless of where they live. These are contractual obligations that the plan cannot revoke because you moved countries.

The practical tasks before departure: (1) Contact your plan administrator to notify them of your planned departure and request international direct deposit setup. This typically takes 4–8 weeks. (2) File an NR301 form to claim any applicable treaty withholding rate. (3) Ensure your new banking details are on file well before your first payment date as a non-resident. (4) Confirm the plan's procedure for periodic confirmation of your continued eligibility (some plans require annual life certificates from non-resident pensioners).

For military pensioners: the Director General Compensation and Benefits (DGCB) recommends notifying them 60 days before departureto avoid payment disruption. RCMP pensioners should contact PSPC with similar lead time. Missing the notification window can cause pension payments to be suspended pending address and banking confirmation — a problem you want to avoid when you're already abroad.

Tax Treaty Withholding Rates: Why Destination Country Matters

The destination country you choose can affect how much of your pension you actually receive after Canadian withholding tax. For a retiree receiving $2,500/month in combined CPP and OAS, the difference between a 15% treaty rate (Mexico, Portugal) and a 25% non-treaty rate (Costa Rica, Panama, Ecuador) is $250/month — or $3,000/year.

Countries with confirmed 15% withholding on pension income under Canada's treaty network include: Mexico, Portugal, Spain, Germany, the Netherlands, Italy, France (verify specifics), and the United States. Countries without a comprehensive income tax treaty — including most of Latin America, the Caribbean (except Barbados, Jamaica, and Trinidad), and much of the developing world — apply the default 25% rate.

Importantly, the withholding is not necessarily the end of the story. If you are a tax resident of your destination country and that country also taxes your Canadian pension income, you may be able to claim a foreign tax credit for the Canadian withholding against your local tax liability. In Mexico, for instance, a qualifying retiree may owe zero Mexican tax on their Canadian pension if the Canadian withholding already covers or exceeds the Mexican tax rate on that income. The mechanics differ by country — consult a cross-border tax specialist before moving.

Disclaimer:Withholding tax rates are based on Canada's treaty network as of 2025 and apply to periodic pension payments. Rates may differ for lump-sum withdrawals, commuted values, or other payment types. Treaty benefits require filing Form NR301. This tool is for general information only — not tax advice. Consult a cross-border tax professional before finalizing your retirement plan.

Canadian Pension Abroad: Frequently Asked Questions

Planning to Retire Abroad on CPP, OAS, or a Pension?

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