Thinking of moving to Canada? Here’s what you need to know first
The idea of packing up and heading off to Canada for a few years is hugely appealing—especially if you’re young and want to explore life abroad before fully committing to the farm. But if the farm is in your name, and you’re currently claiming tax reliefs, this move isn’t something to take lightly.
It’s not just a matter of booking flights and packing wellies. Your Irish tax responsibilities don’t stop just because you’re not here - and if you’re not careful, you could end up facing a clawback of valuable reliefs or worse, unexpected tax bills in two countries.
First things first: you’ll still be taxed in Ireland
If you own farmland or are making income from Irish sources—whether you're farming it directly or leasing it out—you’ll still need to file Irish tax returns. Even if you spend fewer than 183 days in Ireland and become a non-resident for tax purposes, Revenue will expect you to declare Irish-sourced income.
So, just because you’re in another country doesn’t mean you can ignore your Irish tax obligations. You’ll need to keep things up to date while you’re away.
Then there’s Canada to think about
Canada, like Ireland, has its own tax rules. Once you’re living there for 183 days or more, you’ll likely be considered Canadian tax resident. That means you could be taxed on your worldwide income—yes, even the profits from your farm back in Ireland.
The good news? Ireland and Canada have a Double Taxation Agreement (DTA), which helps make sure you’re not taxed twice on the same income. But don’t assume it’ll all sort itself out—get advice from a Canadian tax advisor to understand how the rules will apply to your situation.
Don’t overlook Agricultural and Business Reliefs
If you received Agricultural Relief or Business Relief on a recent transfer of the farm, be aware: these come with conditions that must be met for six years after the transfer.
For example:
You need to be farming the land yourself, or
You must lease it to a qualifying active farmer.
And it’s not just about who’s on the land—it’s about working hours too. To qualify, you (or your lessee) typically need to be clocking up around 20 hours a week or hold an agricultural qualification from an approved course.
So what happens if you move to Canada and stop farming?
If you're not meeting those requirements, you risk losing the relief. Revenue can claw back the tax savings you originally received. That’s not a surprise you want to come home to.
Leasing the land to a qualified active farmer while you’re abroad can help you stay compliant. But—and it’s a big but—you need to make sure that lease ticks all the right boxes, and that your lessee qualifies. Otherwise, you could still be on the hook.
There’s also Stamp Duty to consider
Leasing land while you’re gone? That might help preserve your relief, but don’t forget: a lease can trigger a Stamp Duty liability. For non-residential farmland, that’s currently set at 7.5%.
Leasing the land will not be a viable option to maintain Young Trained Farmer Relief. if the land was transferred within the last 5 years.
Plan now to avoid headaches later
It’s a good idea to appoint someone at home—maybe your accountant or a trusted family member—to keep things running while you’re away. They can help ensure:
Your Irish tax returns are filed on time
Any lease arrangements are properly structured
You don’t accidentally fall foul of Revenue’s rules
It’s a great time to travel—just don’t let tax catch you out
Heading to Canada can be the adventure of a lifetime. But make sure you’ve covered your bases before you go.