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🇨🇦 2026 Canadian Non-Resident CPP & OAS Rules

CPP & OAS Pensions for Emigrants Leaving Canada

A practical 2026 guide to receiving Canadian CPP and OAS after moving abroad, covering eligibility, non-resident withholding, tax treaties, NR5, OAS recovery tax, OASRI and Section 217.

1. What Happens to CPP and OAS When You Leave Canada?

Moving permanently outside Canada does not by itself cancel an accrued CPP retirement pension. CPP retirement pension eligibility generally requires that you are at least age 60 and have made at least one valid CPP contribution. OAS has separate residence-based eligibility rules, and living outside Canada can affect whether and how the pension can be paid.

Key Framework Highlights:
  • CPP and OAS are separate programs: CPP retirement eligibility is contribution-based, while OAS eligibility is primarily based on age, legal status when applicable and residence.
  • CPP can generally be paid to eligible recipients living outside Canada. Your country of residence can affect tax withholding and, in some cases, international social-security coordination.
  • If you live outside Canada when applying for OAS, you generally need at least 20 years of residence in Canada after age 18, unless an applicable social security agreement helps you satisfy the requirement.
  • The amount of a partial OAS pension is generally based on Canadian residence after age 18 divided by 40. Periods in another country that help you qualify under a social security agreement do not automatically increase the Canadian-residence fraction.
  • Non-resident tax is separate from pension eligibility. A person can be eligible for a pension but still have Canadian withholding tax deducted from payments.
Action Checklist:
  • Confirm your CPP contribution record and CPP retirement-pension eligibility.
  • Confirm your OAS residence history after age 18 and whether a social security agreement applies.
  • Tell Service Canada when your foreign address or banking information changes.
  • Determine the Canadian non-resident withholding rate for your actual country of tax residence.
  • Check whether OAS recovery-tax rules or an OASRI filing applies to you.
  • Consider whether an NR5 application or Section 217 election is appropriate for your circumstances.

2. CPP vs OAS When Living Abroad

CPP and OAS should not be treated as having the same overseas eligibility rules. CPP retirement pension eligibility generally requires at least one valid CPP contribution and age 60 or older. OAS requires residence-based eligibility, with a generally higher residence requirement when the applicant lives outside Canada.

IssueCPP Retirement PensionOAS Pension
Basic eligibilityGenerally age 60 or older and at least one valid CPP contributionAge 65 or older plus applicable Canadian residence and legal-status requirements
Living outside CanadaAn eligible CPP pension can generally be paid outside CanadaGenerally requires at least 20 years of Canadian residence after age 18 when living outside Canada
Social security agreementsMay help coordinate eligibility and benefits between Canada and partner countriesMay allow creditable periods in a partner country to help satisfy the residence requirement, depending on the agreement
Partial amountCPP amount depends on the CPP contribution and pension calculation rulesGenerally 1/40 of the full OAS pension for each year of Canadian residence after age 18, subject to the OAS rules
Standard non-resident withholdingGenerally 25% unless reduced or exempted under applicable law or a tax treatyGenerally 25% unless reduced or exempted under applicable law or a tax treaty

3. OAS 20-Year Rule and Social Security Agreements

If you are living outside Canada when applying for OAS, the normal residence requirement is at least 20 years of residence in Canada after age 18. This is an eligibility threshold, not a requirement to have 20 years of Canadian residence for every person in every circumstance. Canada has social security agreements with many countries, and an applicable agreement can allow certain periods of residence or contributions in the partner country to help satisfy the OAS eligibility requirement.

Key Framework Highlights:
  • Normal overseas rule: at least 20 years of Canadian residence after age 18.
  • You generally also must have been a Canadian citizen or legal resident of Canada on the day before leaving Canada when applying from outside Canada.
  • A social security agreement may help you meet the eligibility requirement by recognizing qualifying periods in the partner country.
  • Using a foreign period to qualify does not turn that foreign period into Canadian residence for calculating the Canadian-residence fraction of a partial OAS pension.
  • For example, a person with 16 years of Canadian residence may be able to qualify under an applicable agreement, while the OAS amount can still be calculated using 16/40 of the full pension.
  • If you have fewer than 40 years of Canadian residence after age 18, you may receive a partial rather than full OAS pension, subject to the detailed OAS rules.

4. CPP and OAS Non-Resident Withholding Tax

Canadian CPP and OAS payments received by a non-resident can be subject to Part XIII non-resident withholding tax. The standard rate is 25%, but the applicable rate can be reduced or an exemption can apply under the Income Tax Act or an income tax treaty. Treaty rates are country-specific and must be checked for the recipient's actual country of residence.

SituationGeneral Canadian treatment
Non-treaty countryThe standard 25% Part XIII rate generally applies to taxable pension payments.
Treaty countryThe treaty may reduce the rate or provide an exemption. The exact rate depends on the country and type of payment.
Special treaty exemptionSome treaties provide additional exemptions or thresholds that can require Form NR5 or other documentation.
Incorrect or excess Part XIII withholdingSpecific refund procedures may be available, depending on the circumstances.

5. Form NR5: Reducing Canadian Non-Resident Withholding

Form NR5 is the Application by a Non-Resident of Canada for a Reduction in the Amount of Non-Resident Tax Required to Be Withheld. It can be used in situations where a non-resident wants Canadian withholding reduced or eliminated based on the applicable rules. An approved NR5 generally covers five tax years under CRA's current five-year administrative policy.

6. OAS Recovery Tax: 2024, 2025 and 2026 Thresholds

OAS recovery tax, commonly called the OAS clawback, is separate from the ordinary Part XIII non-resident withholding tax. For non-residents, the recovery-tax rules depend on net world income and whether the country of residence is subject to the relevant Canadian non-resident tax and treaty rules.

Key Framework Highlights:
  • The $90,997 amount belongs to the 2024 tax year and should not be presented as the current 2026 threshold.
  • The 2025 tax-year threshold is $93,454.
  • The currently published 2026 tax-year threshold is $95,323.
  • For non-residents, treaty provisions can limit or eliminate the recovery tax in specified circumstances.
  • Special calculations can apply to people who immigrated to or emigrated from Canada during the relevant year, people who changed treaty-country status during the year, and certain residents of the Philippines.
Tax yearNet world income recovery thresholdRecovery-tax rate
2024$90,99715% on income above the applicable threshold, subject to the OAS recovery-tax rules
2025$93,45415% on income above the applicable threshold, subject to the OAS recovery-tax rules
2026$95,32315% on income above the applicable threshold, subject to the OAS recovery-tax rules

7. OASRI: Old Age Security Return of Income

Form T1136 is the Old Age Security Return of Income (OASRI). It is not the Section 217 return. Non-resident seniors receiving OAS generally use the OASRI process to report the information CRA needs to determine whether OAS recovery tax applies, although treaty-country exceptions can remove the filing requirement in specified circumstances.

Key Framework Highlights:
  • OASRI is specifically connected to OAS recovery-tax administration for non-resident OAS recipients.
  • The standard filing deadline is generally April 30 following the relevant tax year when an OASRI is required.
  • CRA has specific treaty-country exceptions under which an OASRI may not be required.
  • Special rules apply where a person changes residence during the year or has other circumstances identified by CRA.
  • Do not call T1136 a Section 217 tax return. Section 217 is a separate Canadian tax election and return.
Action Checklist:
  • Determine whether you were a non-resident receiving OAS during the relevant tax year.
  • Check whether your country of residence falls within a treaty exception to the OASRI requirement.
  • Calculate or report net world income using the applicable OASRI instructions.
  • File by the applicable deadline when an OASRI is required.
  • Keep the OASRI and supporting records with your tax documentation.

8. Section 217 Election for Canadian Pension Income

Section 217 allows certain non-residents who receive qualifying Canadian pension income, including CPP, QPP and OAS, to elect to have the income taxed under special Canadian Part I rules instead of simply relying on the normal Part XIII withholding treatment. The election can be beneficial in some circumstances, but it is not automatically better than withholding and should be compared using the person's actual Canadian pension income and other relevant income.

Key Framework Highlights:
  • Qualifying income can include OAS, CPP and QPP benefits and certain other pension or retirement amounts.
  • The election can reduce the overall Canadian tax burden compared with ordinary non-resident withholding in some cases.
  • The calculation is not simply a statement that the person will pay ordinary Canadian resident tax rates on the pension.
  • The election has specific eligibility, income-inclusion and filing rules.
  • A Section 217 election is separate from Form NR5 and separate from the OASRI.

9. Guaranteed Income Supplement and Leaving Canada

The Guaranteed Income Supplement (GIS) is different from CPP and OAS. GIS is an income-tested supplement associated with OAS and generally cannot continue indefinitely while a recipient is outside Canada. OAS and GIS can stop after an absence of more than six months when the person does not qualify to receive payments while outside Canada.

Key Framework Highlights:
  • GIS should not be described simply as an ordinary pension that can be exported permanently like CPP.
  • If you leave Canada for more than six months, OAS and GIS can be affected unless you qualify under the rules for receiving payments outside Canada.
  • Before a long-term move, contact Service Canada so that your address and circumstances are properly recorded and potential overpayments can be avoided.
  • GIS eligibility and payment amounts also depend on the applicable income-tested rules.

10. Moving Abroad: Practical Pension Roadmap

Use the following sequence when preparing to leave Canada permanently or for a long period.

11. Receiving CPP and OAS Payments Outside Canada

Service Canada can issue CPP and OAS payments outside Canada. Payment arrangements depend on the destination country and banking arrangements. Some countries support direct deposit, while foreign-currency payment arrangements also vary by country.

Key Framework Highlights:
  • Payments are generally issued on the same schedule as Canadian CPP and OAS payments, subject to banking and delivery arrangements.
  • Foreign-currency payment availability depends on the country and current Receiver General and banking arrangements.
  • If a country is not supported for local-currency payment, payments may be issued in Canadian dollars.
  • Changing your foreign address can affect the currency and delivery method of future payments.
  • Currency conversion can cause the amount received in local currency to fluctuate even when the Canadian-dollar pension entitlement has not changed.
Action Checklist:
  • Confirm that your destination country supports the desired payment method.
  • Provide accurate foreign banking and address information to Service Canada.
  • Check the currency in which payments will be issued.
  • Keep Canadian-dollar payment and NR4 information for tax reporting.
  • Review banking fees and foreign-exchange effects when planning retirement cash flow.

12. Important 2026 Planning Distinctions

Several rules on this page operate on different concepts and tax years. Keeping them separate prevents common errors.

ConceptWhat it controls
CPP contribution recordCPP retirement-pension eligibility and benefit calculation
OAS Canadian residence after age 18OAS eligibility and, for a partial pension, the Canadian-residence fraction
Social security agreementMay coordinate Canadian and foreign pension eligibility and may help satisfy certain OAS residence requirements
Tax residencyDetermines which Canadian and foreign tax rules apply to the individual
Part XIII withholdingTax withheld from qualifying Canadian-source payments made to non-residents
Tax treatyMay reduce or eliminate Canadian withholding and can affect OAS recovery-tax treatment
NR5Application for a reduction in the amount of non-resident tax required to be withheld
OASRI / T1136Return used for non-resident OAS recovery-tax administration
Section 217Election allowing qualifying non-residents to use the special Canadian tax calculation for specified income

Frequently Asked Questions

Generally yes. CPP retirement-pension eligibility is based on CPP eligibility rules rather than a minimum number of years living in Canada, and an eligible CPP pension can generally be paid while you live abroad. Your country of residence can affect Canadian withholding tax.

The normal rule is at least 20 years of residence in Canada after age 18 when you live outside Canada. An applicable Canadian social security agreement can sometimes allow qualifying periods in another country to help you meet the eligibility requirement.

No. The standard Part XIII rate is generally 25%, but an income tax treaty or another applicable rule can reduce the rate or provide an exemption. The exact CPP and OAS rates can differ by country, so the current CRA country-specific table should be checked.

NR5 is an application to reduce the amount of non-resident tax required to be withheld. If CRA approves it, the approval generally covers five tax years under the current administrative policy, subject to the rules and any changes in circumstances.

They serve different purposes. OASRI, also called Form T1136, is used for non-resident OAS recovery-tax administration. NR5 requests a reduction in non-resident withholding. A Section 217 election allows an eligible non-resident to use the special Canadian tax calculation for specified pension and other qualifying income.

For the 2026 tax year, the currently published OAS recovery-tax threshold is $95,323 of net world income. The 2025 threshold is $93,454 and the 2024 threshold was $90,997. The recovery tax is generally 15% of income above the applicable threshold, subject to the detailed OAS recovery-tax rules and treaty provisions.

Official Government & CRA References

Key 2026 Emigrant Pension Metrics

  • Standard Part XIII Tax
    25% unless a treaty or statutory rule reduces or exempts it
  • OAS Outside Canada
    Generally 20 years of Canadian residence after age 18
  • 2025 OAS Recovery Threshold$93,454 net world income
  • NR5 Administrative Policy
    Approved applications generally cover 5 tax years

Related Tax Tools

CPP & OAS Pension Rules for Newcomers→CPP Contribution Rates & New Worker Rules→Canada-UAE Tax Moving Guide→

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