Do I need to close my accounts with local social security authorities?

Leaving Canada to live abroad permanently or for an extended period of time is not just about packing your belongings and saying goodbye to friends. It also involves a series of complex administrative steps, one of which is deciding what to do with your accounts with local social security agencies. In today's world of digital services, each of us is registered with several government systems: health insurance, tax agency, pension plan, unemployment assistance, housing subsidies, and a number of other programs. Ignoring them or automatically assuming that traveling abroad will result in their closure is a surefire way to end up with unpleasant financial penalties, hostile phone calls, and even lawsuits. At the same time, it is not necessary to close everything down. The situation is much more complicated: should you suspend your health insurance card, deregister with the CRA, keep your My Service Canada Account active, and what about child benefits and subsidies?

To provide a comprehensive answer, it is necessary to consider the fundamental differences between temporary absence and complete termination of residency, determine which accounts can and should be suspended or closed and which are better left open, and review the procedure for each of these processes. It is also worth paying separate attention to the different types of programs — federal, provincial, and municipal — and explaining how organizing your affairs outside Canada can affect your ability to return to the same benefits without unnecessary hassle.

The concept of residency and its impact on social programs

Before moving on to recommendations for closing or suspending accounts, you need to clearly understand what tax and immigration residency means in Canada. A tax resident is a person who has permanent ties to the country and files an annual tax return with the Canada Revenue Agency (CRA). An immigration resident is a citizen or permanent resident (PR), as well as a temporary resident with a valid work or study permit. Leaving for less than a year usually does not change your residency status with the CRA, unless you have severed significant ties to Canada, such as housing, family, bank accounts, and driver's license. However, after 12–24 months of absence, the tax authorities may consider you a non-resident for tax purposes, which will automatically affect your eligibility for OAS, CPP, and other benefits.

Each government program — federal, provincial, or local — has its own set of residency rules. For example, Old Age Security (OAS) and Canada Pension Plan (CPP) benefits depend on the number of years you have lived or worked in Canada, but do not require continuous residence in the country. Provincial health insurance, on the other hand, often requires physical presence in the province for at least a few weeks per year, and after a three-month absence without a special agreement, the provider will suspend coverage. Benefits such as the Canada Child Benefit, housing subsidies, and GST/HST credit may also be terminated due to loss of tax residency.

Important to note: Terminating or maintaining your account directly affects not only your eligibility for benefits, but also your legal obligations to the government. For example, an unclosed account with outdated information may result in penalties or demands for repayment of overpaid funds. On the other hand, closing too quickly may make it difficult for you to return later.

Closing or suspending: general recommendations

To determine which accounts should be closed and which can be left open, divide them into four main categories. The first category includes systems that do not need to be accessed while you are away, such as your local medical card or social housing. The second category includes systems that should be suspended but not necessarily closed, such as OAS/CPP and CRA accounts. The third category includes programs that are best left open because they only benefit from continuity, such as My Service Canada Account. The fourth category includes tools that can only be forgotten if you are leaving Canada permanently with no intention of returning, such as local communication channels or municipal student support programs.

Accounts to close

Provincial health insurance is one of the most important systems to keep track of. In most provinces, after a three-month absence without a return, insurance is automatically suspended. At the same time, there is no official mechanism for closing an account: you must submit a statement of change of resident status or departure to the provincial health service. If you don't do this, you may find that your card is considered lost due to automatic suspension, and when you return, you will need to prove your residence again, wait 4–8 weeks, and even pay for each day of waiting. You should write an official letter or fill out an online form to terminate your residency immediately after leaving Canada and keep the confirmation from the provincial service. Social housing and municipal support programs. If you lived in social housing or received rent discounts, you should contact the municipal authority to request that your personal data be removed from their records. Most other provincial and municipal benefits have their own websites for online applications, so simply visit them and indicate that you are no longer a resident—otherwise, you may be charged for overpayments and required to repay the funds when the accounts are reconciled.

Municipal library cards and social clubs. Although these are not government programs in the strict sense, it is worth closing them if you are leaving Canada to avoid fines for overdue books or unpaid dues.

Accounts that should be suspended but not closed

Canada Revenue Agency. If you are leaving Canada temporarily and plan to return within two years, you do not need to close your CRA account. Instead, you should update your tax return status to indicate that you are a non-resident or part-time resident. This can be done using form NR73 or directly on your T1 return. As a result, you will avoid having your account automatically closed and retain the ability to continue filing returns if you sell Canadian real estate or receive income from Canadian sources.

Old Age Security and Canada Pension Plan. Since they use My Service Canada Account for communication, it is recommended that you keep your account open. However, if you are abroad for more than one year and do not plan to receive payments or information during your absence, you can apply online to suspend regular payments to avoid accumulating erroneous payments. This is especially important for those who receive OAS payments to automatic bank accounts to avoid receiving payments to a non-existent account. Payments can be suspended through My Service Canada Account or by sending a written request to Service Canada.

Employment Insurance. If you have left Canada and stopped working, your entitlement to EI benefits will automatically end. However, you can keep your Job Bank account active and update your status to “looking for work” if you plan to return in the coming months and resume your insurance contributions.

Accounts that are best left open

My Service Canada Account. This single window for accessing OAS, CPP, EI, and other programs recommends keeping your account open even if you are outside Canada. First and foremost, because all applications, correspondence, and payment history are stored in your online account, this makes it much easier to resume payments upon your return and provides quick access to official documents.

Canada Child Benefit and GST/HST credit. Even if you are temporarily abroad, you can keep your CRA account open and provide a temporary address abroad. Upon your return, update your address in My Account CRA, and your payments will resume without having to reapply.

Municipal and provincial online services for civil status. Accounts related to civil status records (birth, marriage) or driver's licenses are best left open with your foreign address updated. This is especially important for those who are keeping property or a business in Canada while postponing their departure indefinitely.

Accounts that can be ignored in case of permanent departure

Local cable and internet providers where you no longer intend to use their services. Simply call customer service and inform them that you are terminating your contract.

Loyalty programs of social service providers (e.g., library cards). If they are not accompanied by administrative penalties, you can simply stop using the service and allow the card to become inactive.

Procedure for suspending or closing accounts

Each program has its own procedure. In most cases, you need to submit an online form or send a written request by registered mail with a description of the circumstances and your departure date. For provincial health services, it is usually sufficient to complete an online application for a “change of residency status” and attach a copy of your passport with exit stamps. At the CRA, submitting form NR73 or indicating your resident status on your T1 return is the main thing to do. For Service Canada, you should log in to your personal account and send a letter requesting suspension of OAS or CPP in the “correspondence” section.

It is equally important to keep all copies of the documents you send, proof of mailing, and responses from the authorities. In case of disputes or errors, this will serve as proof that you have fulfilled all your obligations.

Conclusions

Closing all accounts is not a universally correct decision when leaving Canada. For each program, you need to assess your plans for return, the length of your departure, and the nature of the payments. It is advisable to close or suspend provincial health insurance and municipal benefits immediately to avoid accumulating penalties and unauthorized payments. At the same time, it is better to leave your accounts with the Canada Revenue Agency, My Service Canada Account, CPP, OAS, and Canada Child Benefit open and simply update your residency status or address.

General steps: determine the type of program, find out the residency requirements, submit an online application or written request, and keep the confirmation. This approach will help you avoid bureaucratic pitfalls, maintain access to the benefits you are entitled to, and greatly simplify your return to Canada in the future.