Leave Canada Tax Behind, Relocate to Dubai with GenZone

Canada taxes residents on worldwide income, so the key is becoming a non-resident for CRA purposes. This means severing your significant residential ties to Canada - including your primary home, spouse or common-law partner remaining in Canada, and dependants - and establishing genuine residency in the UAE.

Once you are a confirmed CRA non-resident with established UAE tax residency, a qualifying Dubai Free Zone company offers 0% personal income tax, 0% corporate tax on eligible income, and 0% capital gains tax - all fully legal. We strongly recommend working with a qualified Canadian tax adviser for your exit. GenZone handles the UAE side; your adviser handles the CRA exit.

The CRA uses a residential ties test to determine whether you remain a Canadian tax resident after leaving. Significant ties that can keep you resident include:

• A home in Canada available for your use
• A spouse or common-law partner remaining in Canada
• Dependants remaining in Canada

Secondary ties - such as Canadian bank accounts, provincial health insurance, a Canadian driver's licence, and club memberships - are also considered. Severing as many ties as possible before your departure date is critical. Your Canadian tax adviser will help you file the NR73 determination or departure return correctly with the CRA.

Yes - Canada has a departure tax. When you cease to be a Canadian resident, the CRA deems you to have disposed of most of your property at fair market value on the date you leave. This triggers capital gains tax on any unrealised gains in your portfolio, shares, investments, and other assets at that point.

Certain assets are excluded - including Canadian real estate and RRSP holdings - but most investment assets are caught. Assessing your asset position and tax liability before you leave is essential. Your Canadian tax adviser needs to manage the departure return and any elections available to defer the liability.

Your RRSP remains in Canada and is not subject to departure tax - it is one of the excluded assets. However, as a non-resident you can no longer contribute to your RRSP and any withdrawals will be subject to a 25% non-resident withholding tax, which may be reduced under the Canada-UAE tax arrangement.

Your TFSA is different - it is not excluded from departure tax considerations, and contributions made as a non-resident attract a 1% monthly penalty tax. Most advisers recommend withdrawing TFSA funds before departing. This is an area where specialist Canadian financial advice before your departure date is essential.

You have several options depending on your business structure:

• Wind up the Canadian corporation before departure - this can be done tax-efficiently using the capital gains exemption in some cases
• Place the company into dormancy while you establish your Dubai structure
• Continue operating the Canadian entity for Canadian clients while running your primary business through Dubai

If you hold a Canadian Controlled Private Corporation (CCPC), the wind-up strategy requires careful planning to maximise available exemptions and minimise double taxation. GenZone coordinates the exit strategy alongside your Canadian tax adviser as part of our full relocation service.

The Dubai company setup takes 7-10 business days. The full relocation - including Canadian exit strategy, residency consulting, and banking - typically follows an 8-week roadmap:

• Weeks 1-2: Strategy, CRA exit planning, documentation, and company structure
• Weeks 3-4: Dubai company formation and office arrangement
• Weeks 5-6: Banking, UAE tax residency, and asset structuring
• Weeks 7-8: Canadian company exit, RRSP and TFSA review, and ongoing compliance setup

Yes. Once your UAE residency is in place, you can include your spouse and dependent children in the relocation. GenZone guides the full family residency consulting process as part of our premium package.

For Canadian couples, it is especially important that both partners sever their Canadian residential ties together. A spouse remaining in Canada is one of the CRA's strongest indicators of continued Canadian residency, which would keep you in the Canadian tax system regardless of where you are physically living.

The UAE Golden Visa is a 10-year renewable residency pathway that does not require a company or employer as a sponsor. It provides long-term stability and is popular with Canadian entrepreneurs, investors, and professionals looking for a permanent UAE base.

Qualification routes include property investment, business ownership, and specific professional categories. GenZone assesses your eligibility and supports the Golden Visa pathway as part of our premium relocation package.

GenZone's all-inclusive relocation packages - covering company setup, residency consulting, and banking support - typically start from around $8,500 USD. The full cost depends on your chosen free zone, number of dependants, and whether you opt for the Golden Visa pathway.

We provide a complete cost breakdown on your free relocation call, including all UAE government fees and annual renewal costs. No hidden charges.

Relocation does not end on arrival day. GenZone provides ongoing support including:

• Annual business license renewals
• Residency renewal consulting
• Ongoing UAE tax compliance guidance
• Additional banking assistance as your business grows
• Asset structuring and expansion advisory

Many of our clients have been with us for years. We are built for the long term, not just the first transaction.