The Government of Canada imposes income tax on the basis of residency rather than citizenship. This allows Canadian citizens to become a non-resident for tax purposes. After becoming a permanent resident and prior to attaining citizenship, an individual would be required to pay Canadian taxes on worldwide income.

The assets of a newly arriving immigrant are not taxed under Canadian law.

Obtaining “permanent residence” or “permanent resident status” in Canada is also known as “immigrating to Canada” or becoming a “landed immigrant.” The successful end result of the Immigration process is the issuance of an “immigrant visa” or “confirmation of permanent residence document”. Persons to whom an immigrant visa/confirmation of permanent residence document has been issued must present themselves to an Immigration officer at one of Canada’s official ports of entry in order to become landed immigrants.

Canadian permanent residents/landed immigrants and citizens enjoy all of the same rights and privileges (i.e. free health care, free elementary and secondary education, etc.) with three (3) major exceptions:

1. Permanent residents cannot vote;
2. Permanent residents cannot hold a Canadian passport; and
3. Permanent residents can be deported for certain criminal convictions.

Within any five (5) year period, a permanent resident must be:

physically present in Canada for at least 730 days (two (2) years) in that five (5) year period

OR

outside of Canada, accompanying a Canadian citizen, who is his or her spouse or common-law partner or a child accompanying a parent

OR

outside of Canada, employed on a full-time basis by a Canadian business

OR

an accompanying spouse, common-law partner or child of a permanent resident, who is outside Canada and is employed on a full-time basis by a Canadian business.

Once you become a permanent resident of Canada, you can remain outside of Canada for up to three (3) years within any five (5) year period without being deemed to have abandoned your Canadian Permanent Residence.