Individual – Residence

• Generally, an individual is considered a resident in Canada for tax purposes if there is an ongoing relationship between them and Canada. To determine residency, all relevant facts must be examined. Significant residential ties include having a dwelling available for occupation and the presence of the individual’s spouse and dependents. Typically, individuals are considered residents where they maintain a fixed abode for themselves and their families. Secondary factors include social and business ties, personal property like club memberships and driver’s licenses, vehicle registration, and medical insurance coverage.

  Factors such as citizenship and domicile in another country are irrelevant for Canadian tax purposes. However, if an individual who is not a resident of Canada spends 183 days or more in a calendar year in the country, they are deemed to be a resident for the entire year.

  In some cases, individuals may be considered residents of both Canada and another country under that country’s tax laws. To prevent conflicts and double taxation, Canada’s tax treaties often include special residency ‘tie-breaker’ rules. Typically, an individual is considered a resident where they have closer personal and economic ties, although other factors may be considered. These tie-breaker rules take precedence over general residency tests under Canadian domestic law.