CPP While Living Outside Canada
The Canada Pension Plan (CPP) follows you wherever you go. Whether you retire to Portugal, Mexico, Thailand, or anywhere else, here's exactly how CPP is taxed and paid as a non-resident.
Published by CanIRetireCanada.ca
Educational information. Sources and correction policy.
Yes
CPP Abroad?
Paid to you worldwide
25%
Default Withholding
Without a tax treaty
15%
Treaty Rate
For most treaty countries
$1,364
2024 Max CPP at 65
CAD/month maximum
How CPP Works When You Leave Canada
CPP (Canada Pension Plan) is based on your contributions while working in Canada — it's yours regardless of where you live. Moving abroad doesn't reduce or forfeit your CPP entitlement. Service Canada continues to deposit CPP into your bank account (Canadian or international).
The key change when you become a non-resident is how it's taxed. As a Canadian resident, CPP is taxed as regular income on your T1 return. As a non-resident, CPP becomes subject to Part XIII withholding tax — deducted at source before you receive the payment.
Service Canada — CPP InternationalWithholding Tax on CPP: 25% vs 15%
Default: 25% Withholding
Without a tax treaty, Canada withholds 25% of your monthly CPP payment. On the maximum CPP of $1,364/month, that's $341/month withheld — $4,092/year sent to CRA before you see a penny.
Countries without treaties (Thailand, Costa Rica, Panama): 25% applies and cannot be reduced.
With Treaty: 15% Withholding
Most popular retirement destinations have a tax treaty with Canada. File Form NR5 to get the reduced 15% rate applied automatically. On $1,364/month CPP: you pay $204.60/month (15%) instead of $341 (25%) — saving $1,634/year.
Countries with 15% treaty rate: Portugal, Spain, Italy, France, Mexico, UK, USA, Germany, and 80+ others.
How to Notify Service Canada and Reduce Withholding
Update Your Address with Service Canada
Call 1-800-277-9914 or log into My Service Canada Account to update your address and banking information. Inform them you've emigrated from Canada. They will switch your CPP payment to non-resident status.
Official LinkFile Form NR5 to Get the 15% Treaty Rate
Form NR5 is an Application by a Non-Resident of Canada for a Reduction in Non-Resident Tax Withheld. File with the International Tax Services Office (ITSO) in Ottawa. Once approved (typically 2–4 weeks), Service Canada and your financial institution automatically apply 15% instead of 25%. Form NR5 is valid for 5 years, then must be refiled.
Official LinkVerify Your Country Has a Treaty
Before filing NR5, confirm Canada has a tax treaty with your country of residence. The CRA maintains a list of all countries with which Canada has a tax convention. Over 90 countries are covered.
Official LinkShould You Defer CPP When Moving Abroad?
The standard CPP deferral analysis (take at 60, 65, or 70) doesn't change because you've moved abroad — but there are two additional considerations:
Tax rate comparison matters more
Compare benefit start dates using combined Canadian and destination-country tax, available credits, other income and your lifespan assumptions. A withholding rate alone does not establish the tax cost of deferral.
No OAS bridge needed if CPP already covers living costs
Many Canadians who retire abroad can live comfortably on CPP + OAS alone (especially in lower-cost countries). In that case, you may choose to start CPP earlier (age 60–65) rather than defer — since you don't need the bridge strategy a Canadian early retiree would use.
Break-even analysis still applies
Deferring CPP to 70 (max +42%) still has the same break-even age of roughly 82–83. If family longevity is strong and healthcare in your destination country is good, deferral is likely worth it regardless of where you live.
International Social Security Agreements
Canada has social security agreements with many countries that coordinate pension benefits. These agreements help people who have worked in both countries qualify for pensions they wouldn't otherwise be eligible for. They also prevent double contributions.
If you worked in the US, UK, Australia, or many European countries, periods of contribution there may count toward Canadian CPP eligibility
Similarly, your Canadian contributions may help you qualify for the foreign country's pension
These agreements do NOT reduce CPP withholding tax — that's governed by tax treaties (different agreements), not social security agreements
Related Resources
OAS While Living Abroad
Same withholding rules apply
CPP Calculator
Estimate your CPP amount
CPP Timing Analysis
When should you start CPP?
Departure Tax Guide
Full CRA rules for leaving Canada
How to Retire in Portugal
Detailed step-by-step guide
Retire in Portugal from Canada
Costs, tax treaty, healthcare, and residency overview
All Destinations
Compare retirement countries
When to Take CPP
Timing decision — extra critical abroad
CPP Survivor Benefit
Paid worldwide to survivors
Snowbird Guide
Spending winters abroad while keeping CPP
Can I Retire at 60?
CPP timing for early expat retirees
Can I Retire at 65?
Standard age when CPP and OAS both begin
Retire on $500K Abroad
CPP as critical income component
Retire on $1M Abroad
CPP planning with large portfolio