The short answer is yes — your CPP follows you to any country in the world. But how much tax Canada withholds from each payment depends entirely on where you move. Here's everything you need to know.
This was one of the first questions we asked when we started planning our life between Toronto and Kuala Lumpur. The answer is reassuringly simple: CPP travels with you, unconditionally. Service Canada keeps paying it to wherever you tell them your bank account is. What took us longer to understand was the tax side — specifically, that Canada withholds a portion of each payment before it arrives, and that moving to the right country can significantly reduce how much they take.
Canada Pension Plan benefits are earned through decades of contributions to the plan while you worked in Canada. Once you start collecting — whether at 60, 65, or 70 — those payments are yours regardless of where in the world you choose to live. There is no residency requirement to continue receiving CPP. Moving abroad does not reduce, pause, or cancel your CPP payments.
The maximum CPP retirement pension in 2026 is CAD $1,364.60/month for someone who starts at age 65 after making maximum contributions throughout their career. Most Canadians receive less — the average new CPP retirement pension is around CAD $750–$900/month. You can find your personal estimated amount by logging into My Service Canada Account at canada.ca, or by calling Service Canada at 1-800-277-9914.
💡 Deferring CPP to 70 still works abroad. Many Canadians delay starting CPP past 65 to increase the amount — CPP increases by 0.7% for every month you delay past 65, up to a maximum 42% increase at age 70. This strategy works exactly the same whether you're a Canadian resident or living abroad. Deferring to 70 from a beach in Costa Rica is completely fine.
Here's where it gets important. Once you become a non-resident of Canada — which happens when you sever your residential ties and move abroad — your CPP payments are subject to non-resident withholding tax under Part XIII of the Income Tax Act. Canada deducts this tax at source, before the money is sent to you. You receive the net amount.
The standard withholding rate is 25%. But if you move to a country that has a tax treaty with Canada, that rate is typically reduced — most often to 15% on periodic pension payments. The treaty between Canada and the United States goes furthest of all: US residents pay zero Canadian withholding on CPP (the US taxes it instead, with 15% of it tax-free).
In practical terms: if you move to Portugal or Malaysia, Canada withholds 15% of your CPP before sending it. If you move to Ecuador or Costa Rica, Canada withholds 25%. Over the course of a 20-year retirement, that 10-percentage-point difference compounds to a very meaningful amount. It's a real factor in choosing where to retire.
Canada has comprehensive income tax treaties with over 90 countries. Here are the withholding rates for the most popular retirement destinations — verified against published CRA and Service Canada treaty tables as of July 2026. Always confirm the current rate at canada.ca before making decisions, as treaties are occasionally renegotiated.
⚠️ Specific treaty rates vary by income type and treaty article. The 15% rate shown above is the typical reduced rate on periodic pension payments in most Canadian tax treaties, but the exact rate for your situation depends on the specific treaty provisions for your country. Always verify at canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/withholding-rates.html or consult a cross-border CPA before finalising plans.
Let's make this concrete. Take a Canadian couple where each person receives CAD $900/month in CPP — a realistic average. Here's what they actually receive after withholding in three different destinations.
Over a 20-year retirement, that CAD $2,160/year difference compounds to over CAD $43,000 in total — just from the withholding rate alone, before considering any investment growth on retained money. It's not the only factor in choosing where to retire, but it's a real one worth knowing about.
By default, Canada withholds at 25% unless you take steps to apply a reduced treaty rate. Here's how to do it.
If your total Canadian-source income is modest, there's an optional provision that might work in your favour. Section 217 of the Income Tax Act lets you file an optional Canadian tax return as a non-resident and be taxed as if you were a Canadian resident for that income. Because it applies the basic personal amount — approximately $16,129 in 2026 — as a credit, it can shelter a meaningful portion of your CPP and OAS from Canadian tax entirely.
The 217 election is most beneficial when your total Canadian-source income is low enough that the marginal tax rate (after personal credits) is lower than the flat withholding rate. For a single person receiving CPP of $700/month ($8,400/year) and OAS of $743/month ($8,916/year) — total $17,316 — the Section 217 return could result in very low or even zero Canadian tax, compared to 15–25% withheld at source. The difference comes back as a refund.
It's not right for everyone and adds complexity. Run the numbers with a cross-border CPA who handles Canadian non-resident tax returns — it's a well-known option and shouldn't take them long to model.
💡 Section 217 deadline: The optional non-resident return under Section 217 must be filed by June 30 of the following year (e.g., June 30, 2027 for the 2026 tax year). You can't file it late and still get the benefit. Mark it in your calendar if you're planning to use this option.
OAS works similarly to CPP — it continues abroad subject to the same non-resident withholding rates. The maximum OAS payment in 2026 is CAD $743.05/month (ages 65–74) or CAD $818.23/month (ages 75+). To qualify while living abroad you must have lived in Canada for at least 20 years after your 18th birthday — which most long-term working Canadians easily meet.
One important OAS-specific rule: if your net world income exceeds CAD $93,454 in the 2025 tax year (estimated ~$95,323 for 2026), your OAS benefit is reduced by 15 cents for every dollar over the threshold — the OAS clawback. This applies based on your worldwide income, including income from your new country of residence, not just Canadian-source income. If you're drawing significant RRIF income or have investment returns on top of CPP and OAS, keep an eye on this threshold.
And one hard stop: the Guaranteed Income Supplement (GIS) stops after you've been outside Canada for 6 consecutive months. GIS is specifically for low-income seniors living in Canada — it is not portable. If you currently receive GIS, factor this into your financial plan before leaving.
Collecting CPP abroad is simple in practice. The main tasks before you leave:
1. Check whether your destination country has a tax treaty with Canada at canada.ca and what the withholding rate is for pension income. 2. If it does, file Form NR5 with the CRA to apply the reduced rate before or shortly after you move. 3. Update your address and bank details with Service Canada. 4. Speak to a cross-border CPA about whether the Section 217 election makes sense given your income level. 5. Check your NR4 slip each February and keep it on file.
That's genuinely it. Canada is good at sending pension money abroad — the system is well-established and thousands of Canadian retirees do this every year without issue.
We found the tax side much less scary in practice than it sounded in the research phase. Service Canada processes international payments routinely — they have an entire international division for it. The call to update our address and bank details took about 20 minutes. The NR4 slip arrives digitally. The withholding is just automatically applied. Once it's set up, it runs itself.
The part that actually required a professional was the Section 217 modelling and the departure year tax return. That's where a good cross-border CPA earns their fee. Everything else is form-filling.
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Read the Canadian Guide →Sources & Disclaimer: This article is for informational purposes only and does not constitute financial or tax advice. Data sourced from Service Canada (canada.ca), CRA T4058 Non-Residents and Income Tax 2024, Insight Accounting CPA Non-Resident Withholding Tax Guide 2026, Dual.tax CPP & OAS Abroad 2026, Objective Financial Partners, Money.ca (April 2026). Tax rates and treaty provisions change — always verify current information at canada.ca and consult a cross-border CPA for your specific situation.