Yes, you can keep a Canadian bank account while living abroad, but your bank may close it if you don't meet their residency requirements

Most Canadian banks allow non-residents to hold accounts, but the rules vary by institution and by how long you've been gone. Some banks require you to maintain Canadian residency to keep an account open. Others let you keep it indefinitely as long as you make deposits or withdrawals regularly. A few will close your account automatically after a set period of inactivity or non-residency. The key is to contact your bank directly before you leave and ask what their policy is — not what the website says, but what applies to your specific account type.

If your bank does allow non-resident accounts, you'll face a second set of rules: tax reporting and currency conversion. Canada's tax authority (the Canada Revenue Agency, or CRA) requires you to report worldwide income, and your bank may report your account to both Canadian and foreign tax authorities under international information-sharing agreements. Currency conversion happens at your bank's rate whenever you move money in or out, and those rates are rarely in your favour.

Key Takeaways

  • Contact your bank before leaving Canada to confirm whether they allow non-resident accounts; some banks close accounts after a set period of non-residency or inactivity.
  • Your Canadian bank account will be reported to the CRA and possibly to the tax authority of the country where you live, so you must report all income to both countries if required.
  • Currency conversion fees apply every time you move money between your Canadian account and foreign accounts or withdraw in a foreign currency.
  • Some banks charge higher fees for non-resident accounts or restrict access to certain services like mortgages or credit products.
  • If your bank closes your account, you can open a new one remotely with some institutions, but you'll need a Canadian address and may need to visit a branch in person.

Which Canadian banks allow non-resident accounts

The Big Five banks — Royal Bank of Canada (RBC), Toronto-Dominion (TD), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC) — all allow non-residents to hold accounts, but each has different rules about how long you can stay abroad before they close it. RBC and TD generally allow indefinite non-residency as long as the account remains active. Scotiabank, BMO, and CIBC have stricter policies and may close accounts after one to three years of non-residency, though this varies by account type.

Credit unions and smaller banks vary widely. Some provincial credit unions (like Tangerine or EQ Bank, which operate online) have no residency requirement at all. Others require you to maintain a Canadian address or close your account within months of moving. Before you leave, call your bank's customer service line and ask specifically: "If I move abroad, will my account stay open? For how long? What do I need to do to keep it active?" Write down the name of the person you spoke to and the date — if your account is later closed, you'll have documentation of what you were told.

Tax reporting obligations when you're abroad

The CRA considers you a resident of Canada for tax purposes if you maintain a permanent home in Canada, have family ties there, or spend more than 183 days in the country in a year. If you're non-resident, you still owe Canadian tax on Canadian-source income (like rental income from a Canadian property or employment income earned in Canada), but not on foreign-source income. Your Canadian bank account itself doesn't trigger a tax bill, but the interest it earns does — you must report that interest to the CRA every year.

Many countries where Canadians live have tax treaties with Canada to prevent double taxation. The United States, United Kingdom, Australia, and most European countries all have agreements with Canada. Under these treaties, you typically pay tax in the country where you live, not in Canada, but you still have to file in both places to prove you've paid. Your Canadian bank will report your account balance and interest earned to the CRA automatically under the Common Reporting Standard (CRS), an international agreement that requires banks to share account information with tax authorities. The CRA then shares that information with the tax authority of the country where you live.

If you fail to report income or file taxes in both countries, you risk penalties from both tax authorities. The CRA's penalties for non-filing start at 5% of the unpaid tax and go up to 25% if the failure is repeated. Foreign tax authorities have their own penalties, which can be steeper.

Currency conversion and foreign exchange fees

Every time you move money from your Canadian account to a foreign account or withdraw cash in a foreign currency, your bank converts Canadian dollars to the local currency. Banks don't use the real exchange rate (the mid-market rate you see on financial websites). Instead, they apply a markup — typically 1.5% to 3% on top of the real rate — and keep the difference as profit. On a $10,000 transfer, a 2% markup costs you $200.

Some banks charge an additional wire transfer fee on top of the currency markup. RBC, TD, and Scotiabank typically charge $15 to $30 per international wire, plus the currency conversion markup. Tangerine and EQ Bank have no wire transfer fees but still apply the currency markup. If you're moving money regularly, these fees add up fast. Many Canadians abroad use services like Wise (formerly TransferWise) or OFX to move money at a lower cost — these services use the real exchange rate and charge a flat fee instead of a percentage markup — but you'll need to transfer money out of your Canadian bank account first to use them.

What happens if your bank closes your account

If your bank closes your account due to non-residency, they'll send you a notice (usually by mail to your last known address) giving you 30 to 60 days to withdraw your money or transfer it elsewhere. If you don't act, the bank will send you a cheque or transfer the balance to an address you provide. If they can't reach you, the money goes into unclaimed property, and you'll have to contact the bank or your provincial unclaimed property registry to recover it.

If you want to keep a Canadian account open and your current bank closes it, some banks let you open a new account remotely. Tangerine and EQ Bank both allow online account opening without a branch visit, though you'll need a Canadian mailing address (a friend's or family member's address works) and a Canadian phone number. Other banks require you to visit a branch in person or have a Canadian resident act as a guarantor. If neither option works, you can ask a family member or trusted friend in Canada to hold an account in their name for you, though this creates legal and tax complications if the account is supposed to be yours.

Maintaining your account while abroad

The easiest way to keep your account open is to use it regularly. Make at least one deposit or withdrawal every few months — even a small transfer counts. Set up a recurring bill payment (like a subscription service) to be charged to the account, or arrange for a small monthly deposit from a Canadian employer or pension. Banks track activity, and an active account is much less likely to be closed for non-residency than one that sits dormant.

Keep your contact information current. Update your address to a Canadian address (yours, a family member's, or a mail forwarding service) so the bank can reach you if there's a problem. If your bank sends you a letter asking you to confirm your residency status, respond immediately — ignoring it is often treated as consent to close the account. Some banks send these letters automatically every year or two to non-resident account holders.

If you're planning to return to Canada eventually, keeping an account open makes the transition easier. You'll have an established banking relationship, a credit history that continues to build, and a place to deposit money as soon as you land. If you're staying abroad long-term, you may eventually decide to close the Canadian account and open one locally, but that's a choice you can make later once you know how long you'll be gone.

Frequently Asked Questions

Do I need to tell my bank I'm moving abroad?

You don't have to, but you should. Call before you leave and ask about their non-residency policy. If you don't tell them and they discover you're non-resident through tax reporting or other means, they may close your account without warning. Being proactive gives you time to plan and understand what will happen.

Can I use my Canadian debit card abroad?

Yes, as long as your account stays open. You can withdraw cash and make purchases in foreign currencies, but you'll pay the currency conversion markup each time. Some banks charge an additional fee for foreign ATM withdrawals (typically $2 to $5 per transaction). Check your bank's website for their specific fees before you leave.

What if I'm a Canadian citizen but never lived in Canada?

Banks care about residency, not citizenship. If you've never been a Canadian resident, most banks won't open an account for you. If you already have one, you can usually keep it as long as you meet the bank's non-residency rules. You'll still owe Canadian tax on Canadian-source income, but not on foreign income.

Will my Canadian bank account affect my ability to get a mortgage or credit in my new country?

Not directly. Lenders in your new country won't see your Canadian account unless you tell them. However, if you're applying for credit and you have Canadian debt (like a mortgage or credit card), that will show up on your credit report in Canada and may affect your ability to borrow there in the future. Your Canadian credit score doesn't transfer to other countries.

Can I keep a Canadian account if I'm working abroad for a Canadian company?

Yes. If you're employed by a Canadian company and earning Canadian-source income, you're more likely to be considered a Canadian resident for tax purposes, even if you live abroad. You'll still owe Canadian tax on that income, but your bank is less likely to close your account because you have an active Canadian income source.