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Becoming a Non-Resident
You do not have to close your RSP if you leave Canada. Your capital and its ongoing earnings will remain sheltered from federal and provincial tax.
You should, however, consult a tax expert to determine if your new country of residence will tax the plan. You can even continue to make RSP contributions if you have Canadian-source income or unused contribution room from previous years. Of course, the related deductions are usable only on a Canadian income tax return.
RSP withdrawals made before leaving Canada are considered taxable Canadian income subject to the regular withholding rates. Withdrawals after your departure are subject to non-resident withholding tax. This tax rate is set at 25%, but might be less if your new country of residence has a tax agreement with Canada. If you convert your RSP into an annuity, Canada will deduct non-resident withholding tax from your annuity payments. Check with your new country of residence to see if it will tax those payments as well.
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