Leaving Canada With Kids: RESPs, Schools, and What Parents Actually Need to Know

Moving abroad is complicated enough when it's just you. Add children to the equation, and the stakes multiply. Suddenly you're not just planning your own financial transition—you're making decisions that will shape your children's education, identity, and relationship with Canada for decades to come.

More than 106,000 Canadians left the country in 2024, and a significant portion were families. If you're considering joining them, you need to understand how your departure affects everything from your RESP accounts to your child's sense of belonging. The financial implications alone can cost—or save—your family tens of thousands of dollars depending on how well you plan.

Key Takeaways

• Your RESP doesn't disappear when you leave, but the rules change dramatically—contributions stop, grants may need to be returned, and withdrawals face 25% withholding tax for non-resident beneficiaries
• Your child can still use RESP funds for university abroad, including returning to Canada for school even after years away
• Children aged 8-12 face the hardest adjustments when moving internationally, while younger children typically adapt more easily
• International school costs range from $10,000 to $50,000+ annually, making education planning as important as tax planning
• "Third culture kids" develop unique strengths, including cultural adaptability and language skills, but may struggle with identity and belonging

What Happens to Your RESP When You Leave Canada

The Registered Education Savings Plan is one of Canada's best tools for funding your child's education—but it wasn't designed with expats in mind. Understanding how non-residency affects your RESP is critical to avoiding costly surprises.

The Basic Rule: Residency Determines Everything

The key principle: the beneficiary's residency matters more than the subscriber's.

According to the CRA's RESP rules, a beneficiary must be a Canadian resident at the time contributions are made. If your child becomes a non-resident:

• No new contributions can be made to the RESP while they're non-resident
• No government grants (CESG, CLB) will be paid into the account
• No grant room accumulates during the non-resident period
• The existing account can remain open and continue growing tax-sheltered

The subscriber (typically a parent) has fewer restrictions. Non-resident subscribers can maintain the account, but they may face tax obligations in their new country of residence on RESP income and gains—the account's tax-sheltered status only applies under Canadian law.

What Happens to the Grants You've Already Received

Here's where it gets complicated. The Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB) already in your RESP are protected—as long as your child eventually uses them properly.

If your child remains non-resident when they start post-secondary education:

• Grants (CESG, CLB) must be returned to the government
• Investment earnings can still be withdrawn, but face 25% non-resident withholding tax
• Original contributions can be withdrawn tax-free at any time

If your child returns to Canada for education:

• Grants remain intact
• No withholding tax on Educational Assistance Payments (EAPs)
• The account functions essentially as it would have if you never left

This creates a powerful incentive for families to maintain the option of Canadian university for their children, even if they've been living abroad for years.

Can RESP Funds Be Used for University Abroad?

Yes—with caveats.

RESP funds can be used at qualifying post-secondary institutions worldwide, not just Canadian schools. According to Employment and Social Development Canada, eligible foreign institutions must:

• Provide courses at the post-secondary level
• Require enrolment in a program lasting at least 13 consecutive weeks (or 3 weeks for university programs)
• Be on the list of designated educational institutions or meet equivalent criteria

The catch: If your child is a non-resident of Canada when withdrawing EAPs, grants are forfeited and earnings face 25% withholding, regardless of where they attend school.

The strategy: If possible, have your child establish Canadian residency before starting post-secondary education—even temporarily. This preserves grant eligibility and eliminates withholding tax on EAPs.

RESP Withdrawal Limits and Timing

Whether your child studies in Canada or abroad, withdrawal limits apply:

For most students with little other income, EAPs result in minimal actual tax owing due to the basic personal amount and education credits.

What If Your Child Doesn't Pursue Post-Secondary Education?

RESPs remain open for 35 years from the date they were established. If your child decides not to pursue education:

• Transfer to another beneficiary (such as a sibling) without penalty
• Collapse the account and take an Accumulated Income Payment (AIP)—but only if the subscriber is a Canadian resident
• Roll up to $50,000 of RESP earnings into your RRSP if you have contribution room
• Forfeit earnings to a designated Canadian educational institution

Non-residents cannot receive AIPs. If you've left Canada and your child won't pursue education, you may need to transfer subscribership to a Canadian resident family member or forfeit the earnings portion of the account.

Choosing Education Options Abroad

One of the most consequential decisions expat parents face is how to educate their children. The choice between international schools, local schools, and homeschooling affects everything from your child's social development to your family budget.

International Schools: Familiar Curriculum, Premium Price

International schools offer curricula familiar to Canadian children—often the International Baccalaureate (IB), British, American, or even Canadian provincial curricula. For families planning to return to Canada eventually, this continuity can ease the transition.

Typical annual costs:

• Entry-level international schools: $10,000-$15,000 CAD
• Mid-tier schools: $15,000-$25,000 CAD
• Premium international schools: $30,000-$50,000+ CAD

Many international schools also charge:

• Registration fees: $1,000-$5,000
• Capital levies or debentures: $5,000-$25,000 (sometimes refundable)
• Additional fees: Uniforms, transportation, lunch programs, extracurriculars

Benefits:

• Instruction in English (or French)
• Globally recognized qualifications
• Easier university applications, especially to Canadian institutions
• Community of families in similar situations
• After-school activities and counselling services

Drawbacks:

• Significant cost—often the largest expense after housing
• Can create a "bubble" that limits cultural immersion
• Your child may struggle with local language acquisition
• Quality varies significantly; research thoroughly

Local Schools: Cultural Immersion, Steeper Curve

Enrolling children in local schools offers deeper cultural integration and language acquisition—but comes with challenges, especially for older children.

Benefits:

• Usually free or low-cost for residents
• Full immersion in local language and culture
• Authentic friendships with local children
• Better preparation if planning to stay long-term

Drawbacks:

• Language barrier can be overwhelming, especially initially
• Curriculum may not align with Canadian standards
• May complicate university applications to Canadian schools
• Less support for expat-specific challenges

Age matters: Research consistently shows that children under 8 typically adapt to local school systems within 6-12 months. Children aged 9-12 face the steepest challenges, having developed strong social identities and academic expectations. Teenagers may resist local schooling entirely.

Canadian Curriculum Schools Abroad

Several countries host schools offering Canadian provincial curricula—particularly Ontario, British Columbia, and Alberta programs. Students graduate with Canadian high school diplomas, making university admission straightforward.

These schools exist in:

• China
• United Arab Emirates
• India
• Egypt
• Malaysia
• Several other countries

Teach Away maintains a directory of international schools by curriculum type.

Homeschooling and Online Learning

For families in locations without suitable schools, or those preferring educational flexibility, homeschooling and online Canadian schools offer alternatives.

Online options include:

• Provincial distance learning programs (BC, Alberta, Ontario offer robust options)
• Virtual Canadian private schools
• American or British online schools

Considerations:

• Legal requirements vary by country—some nations restrict or prohibit homeschooling
• Social isolation can be a challenge; you'll need to actively create peer interaction
• Can be ideal for families who move frequently
• Allows children to maintain Canadian curriculum alignment

The Psychology of Moving: How Children Adjust

Financial planning is essential, but the human element of raising children abroad deserves equal attention. Understanding how relocation affects children at different ages helps you support them effectively.

Third Culture Kids: A Unique Experience

The term "Third Culture Kid" (TCK) describes children who spend significant formative years in countries other than their parents' passport country. They don't fully belong to their parents' culture (first culture) or the host country's culture (second culture), but instead develop a "third culture" shared with other internationally mobile children.

Research published in Frontiers in Psychology identifies both advantages and challenges:

Advantages:

• Enhanced cultural adaptability and flexibility
• Greater comfort with diversity
• Advanced language skills (often multilingual)
• Broader worldview and global perspective
• Strong relationship-building skills across cultures
• Higher levels of general adjustment compared to mono-cultural children

Challenges:

• Difficulty answering "Where is home?"
• Sense of not fully belonging anywhere
• Repeated loss of friendships due to mobility
• "Rootlessness" or "cultural homelessness"
• Confusion around identity, especially during adolescence
• Difficulty with long-term planning when the future feels uncertain

Age-Specific Adjustment Patterns

Children's responses to international relocation vary significantly by developmental stage:

Ages 0-4: The Adaptable Years

• Minimal disruption to social bonds
• Language acquisition happens naturally
• Home is wherever the family is
• Parents' stress affects them more than the move itself

Ages 5-8: The Transition Window

• Can adapt within 6-12 months
• Language acquisition still relatively easy
• May miss specific friends but make new ones readily
• Concrete thinking means they focus on tangible changes (new bedroom, new playground)

Ages 9-12: The Challenging Years

• Strongest attachment to peer groups
• Developing sense of identity tied to place and community
• Academic stakes increase
• May experience significant grief over what they're leaving
• Take 12-18+ months to fully adjust

Ages 13-17: The Resistant Years

• Highest risk of resentment toward parents
• Complex social dynamics harder to rebuild
• Academic pressure intensifies with university looming
• May strongly prefer to return "home"
• Can also thrive, especially in international school environments with other TCKs

"Expat Child Syndrome" and Warning Signs

Mental health researchers have identified "Expat Child Syndrome" (ECS)—emotional and psychological strain that some children experience during international transitions.

Watch for:

• Withdrawal from family activities
• Irritability, defiance, or unusual behaviour
• Sleep problems, nightmares
• Physical complaints (headaches, stomachaches) without medical cause
• Academic decline
• Excessive focus on the old country or resistance to new experiences
• Social isolation or difficulty making friends

Risk factors:

• Older age at time of move
• Multiple previous moves
• Parents under significant stress
• Language barriers
• Loss of important relationships (extended family, best friends)
• Move during school year rather than between grades

Strategies That Help Children Adjust

Research on TCK adjustment suggests several evidence-based approaches:

Before the move:

• Involve children in the decision where possible
• Allow them to say proper goodbyes—to friends, teachers, places
• Research the new location together
• Connect with expat families already living there
• Visit if feasible before the permanent move

During the transition:

• Maintain familiar routines (mealtimes, bedtime rituals)
• Acknowledge their feelings without dismissing them
• Share your own adjustment challenges honestly
• Explore the new environment together as a family
• Give extra time and presence—this is not the time to be absorbed in work

After arriving:

• Prioritise friendship opportunities (activities, clubs, playdates)
• Stay connected with old friends through video calls
• Create new family traditions while maintaining old ones
• Be patient—adjustment typically takes 6-18 months
• Consider counselling if warning signs persist

The Return-to-Canada Question

Many expat families keep one eye on Canada, wondering whether and when they might return. This consideration affects almost every financial and educational decision.

Why Canadian University Makes Sense for Expat Kids

Even families with no plans to return often consider Canada for their children's post-secondary education:

• Domestic tuition rates: Children who re-establish Canadian residency qualify for domestic tuition—often 3-4x lower than international rates
• RESP optimization: Returning preserves grant eligibility and eliminates withholding tax
• Employment pathways: Canadian degrees plus Canadian citizenship provide straightforward employment options
• Healthcare coverage: Provincial health insurance restores after 3 months of residency
• Cultural reconnection: A chance for TCKs to connect with their passport country

Planning for the Return

If Canadian university is a possibility, consider:

• Maintaining a Canadian address through family (simplifies applications, banking)
• Keeping RESP intact rather than collapsing
• Canadian curriculum or IB for high school
• Summer visits to maintain familiarity with Canada
• Application requirements: Some universities have residency timelines for domestic status

Financial Planning: Beyond the RESP

While RESPs receive the most attention, families leaving Canada with children have broader financial considerations.

Child-Related Tax Benefits You'll Lose

Several Canadian benefits end when you become a non-resident:

• Canada Child Benefit (CCB): Stops when you leave
• Provincial child benefits: Also end with non-residency
• Child care expense deductions: No longer applicable
• Children's fitness and arts credits: Eliminated federally; some provinces still offer

What Your New Country May Offer

Many expat destinations provide family-related tax benefits:

• Child allowances (common in Europe)
• Education subsidies or vouchers
• Reduced tax rates for families
• Employer-provided education benefits (especially in corporate relocation packages)

Research your destination's family tax situation before departure—some countries are significantly more family-friendly than Canada.

Education Savings in Your New Country

If your RESP is functionally frozen due to non-residency, consider:

• Local education savings vehicles (if your new country offers them)
• Non-registered investment accounts (simpler, no contribution limits)
• 529 plans (if you're moving to or have ties to the United States)

Be cautious about cross-border complications—holding US investment products like 529 plans while Canadian resident, or Canadian products like RESPs while US resident, creates significant tax complexity.

Budgeting for International Education

If international school is likely, budget accordingly:

These costs typically increase 3-5% annually and often double for high school versus elementary grades.

Special Situations

Divorce and Custody Across Borders

International relocation adds complexity to custody arrangements. Before leaving Canada with children:

• Review custody agreements for travel and relocation provisions
• Obtain written consent from the other parent
• Consult a family lawyer about international custody law
• Understand the Hague Convention on International Child Abduction (if applicable)

Relocating children internationally without proper consent can constitute abduction under Canadian and international law.

Children with Special Needs

Expat life with special-needs children requires extra research:

• Availability of services varies dramatically by country
• International schools may or may not accommodate various needs
• Healthcare coverage for ongoing therapy and supports
• Community resources in the local and expat communities

Some families find better and more affordable services abroad; others face significant gaps.

Adult Children: When They're No Longer Dependents

If your children are young adults (18-24) when you leave:

• RESP withdrawals remain available if they're in qualifying education
• They can choose to remain in Canada as citizens
• Their residency is independent of yours for tax purposes
• They may qualify for different visa categories than you in your destination country

The Bottom Line: Planning for Your Family's Future

Leaving Canada with children requires planning across multiple dimensions simultaneously. The financial considerations—RESPs, education costs, tax benefits—intersect with emotional and developmental realities that don't appear on any spreadsheet.

What we've built at Expatify:

We understand that families need tools designed for their complexity. Our platform helps you:

• Model departure tax scenarios including the impact of timing on your family's tax burden
• Understand treaty benefits for ongoing Canadian income like RESPs and pensions
• Track your departure checklist including child-specific items like school records and healthcare transitions
• Get answers to your specific questions through our AI assistant

Start by understanding your numbers: Use our departure tax calculator to see what leaving Canada looks like for your family's specific situation.

The best time to plan is before you're committed to a departure date. The more lead time you have, the more options you have for optimizing everything from RESP withdrawals to school enrollment timing to your children's emotional preparation.

Your children didn't choose this move—but with the right planning, you can turn it into one of the most enriching experiences of their lives.

Related Resources

• CRA: Registered Education Savings Plans (RESPs)
• Employment and Social Development Canada: Paying for Education
• CIBC RESP Withdrawal Guide
• MoneySense: What Happens to Your RESP If You Become a Non-Resident

This article is for educational purposes only and does not constitute tax, legal, or financial advice. Individual circumstances vary, and readers should consult qualified professionals for guidance specific to their situations.