OAS While Living Outside Canada
Old Age Security (OAS) — Canada's universal pension — continues to be paid to Canadians who move abroad. But taxes, withholding rates, and eligibility rules change significantly once you leave.
Published by CanIRetireCanada.ca
Educational information. Sources and correction policy.
Yes
OAS Abroad?
Continues after you leave Canada
25%
Default Withholding
Without a tax treaty
15%
Treaty Rate
For most treaty countries
20 yrs
Min. Residency for OAS
In Canada after age 18 to receive abroad
How OAS Works as a Non-Resident of Canada
OAS (Old Age Security) is a monthly payment from the Government of Canada to Canadians aged 65 and older. To receive OAS while living outside Canada, you must have lived in Canada for at least 20 years after age 18. Most Canadians who spent the majority of their lives in Canada easily meet this threshold — 40 years of residency in Canada after 18 gives you the full OAS amount.
Once you become a non-resident, Service Canada continues to pay OAS, but the tax treatment changes dramatically. Instead of being taxed as regular income on your T1 return, OAS becomes subject to non-resident withholding tax — taken off at source by Service Canada before you receive the payment.
Service Canada — OAS ApplicationThe 25% Default Withholding Rate
By default, Canada withholds 25% of OAS payments made to non-residents (under Part XIII of the Income Tax Act). This withholding is the final Canadian tax on OAS — you don't file a regular Canadian income tax return for this income once you're a non-resident.
Example: Monthly OAS of $713 → Canada withholds $178.25 (25%) → You receive $534.75. The withheld amount is your total Canadian tax on OAS.
Good news: If you move to a country with a tax treaty with Canada, the withholding rate drops to 15% for most pension-type income (including OAS). File Form NR5 with the CRA to get the reduced rate applied automatically. Common treaty countries: Portugal, Spain, Italy, France, Mexico, UK, Germany, Netherlands, and many others.
How to Get the 15% Treaty Rate on OAS
Confirm your country has a tax treaty with Canada
Canada has tax treaties with over 90 countries. Most popular retirement destinations are covered. Countries WITHOUT a treaty with Canada as of 2024 include: Thailand, Costa Rica, Panama, Indonesia, Vietnam, and most of Central America.
Official LinkFile Form NR5 with the CRA
Form NR5 (Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to be Withheld) is filed once every 5 years. Once approved, your OAS and CPP payers (Service Canada and your financial institution) automatically apply the reduced 15% rate going forward.
Official LinkNotify Service Canada of your new address
Update your mailing and banking information with Service Canada by calling 1-800-277-9914 or logging into My Service Canada Account. You must inform them you've left Canada so they switch to non-resident status and apply proper withholding.
Official LinkOAS Clawback (Recovery Tax) as a Non-Resident
The OAS clawback (officially: OAS Recovery Tax) applies when your net world income exceeds $90,997 (2024 threshold). As a non-resident, you're still subject to this if your total income from all sources is high enough.
However, as a non-resident, you're only taxed on Canadian-source income — and the clawback is applied based on your Section 217 election (if you choose to file a Canadian return) or is factored into withholding. Most non-resident retirees with modest income (CPP + OAS + RRIF) have total income below $90,997 and pay no clawback.
If your total income is high, strategic RRIF withdrawal timing before leaving Canada can reduce your future clawback exposure.
Calculate your OAS clawbackCountry-by-Country OAS Tax Rates
| Country | Treaty? | OAS Withholding Rate | NR5 Needed? |
|---|---|---|---|
| Portugal | Yes (1999) | 15% | Yes — to get reduced rate |
| Spain | Yes (1976) | 15% | Yes |
| Italy | Yes (2002) | 15% | Yes |
| France | Yes (1976) | 15% | Yes |
| Mexico | Yes (1992) | 15% | Yes |
| UK | Yes (1978) | 15% | Yes |
| USA | Yes (1980) | 15% | Yes |
| Costa Rica | No treaty | 25% | Cannot reduce — no treaty |
| Thailand | No treaty | 25% | Cannot reduce — no treaty |
| Panama | No treaty | 25% | Cannot reduce — no treaty |
| Malta | No treaty | 25% | Cannot reduce — no treaty |
| Greece | Yes (2009) | 15% | Yes |
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