Will my Canadian OAS pension continue if I move to Israel?

A Canadian retiree moving to Israel needs to separate three pensions, because they travel differently. Old Age Security (OAS) keeps paying outside Canada indefinitely only if you accumulated at least 20 years of Canadian residence after age 18; without that, OAS stops after six months of absence. The Guaranteed Income Supplement (GIS) does not travel at all beyond six months. The Canada Pension Plan (CPP) is paid anywhere in the world with no residence condition. The Canada-Israel Social Security Agreement, in force since 2003, can let you count time in Israel toward the 20-year OAS test. On the Israeli side, a new immigrant enjoys a 10-year exemption on foreign pension income.

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Detailed Explanation

OAS portability is the pivot. Service Canada will continue OAS payments abroad without time limit only where you have at least 20 years of Canadian residence after 18; if you fall short, the pension is suspended six months after you leave Canada and resumes only if you return. This is where the social security agreement earns its keep: it allows periods of residence or coverage in Israel to be totalized with Canadian residence so that someone short of 20 Canadian years can still meet the portability threshold and keep OAS flowing in Israel. GIS is means-tested and tied to living in Canada, so it ends after six months abroad regardless of the agreement. CPP, being a contributory pension you earned, is unaffected by where you live and continues to Israel by direct deposit.

For the move itself, the practical steps are Canadian-side and Israeli-side. You notify Service Canada of the change of country, arrange international direct deposit, and, if relying on the agreement, document your Israeli residence through Israel's National Insurance Institute (Bituach Leumi). On tax, Canada generally applies a 25% non-resident withholding tax to OAS and CPP paid to non-residents, though the Canada-Israel tax treaty and your Israeli residence can reduce or reallocate that, and OAS can be subject to recovery (clawback) at higher incomes. Within Israel, a new immigrant or qualifying returning resident benefits from the 10-year exemption under Section 14 of the Income Tax Ordinance 1961 on foreign-source income, which typically covers the Canadian pensions for the first decade. These pension and residence questions sit alongside the wider planning we set out in our guide to retiring in Israel for Canadians.

In Practice: OAS is portable to Israel without time limit only with 20 years of Canadian residence after age 18, and the Canada-Israel Social Security Agreement (in force 2003) lets Israeli residence be totalized to reach that threshold, administered through Service Canada and Israel's National Insurance Institute (Bituach Leumi). The maximum OAS is roughly CAD 700+ per month in 2026, GIS stops six months after departure, and under Section 14 of the Income Tax Ordinance 1961 a new immigrant's foreign pension is exempt from Israeli tax for 10 years.

Key Considerations

• OAS is portable to Israel indefinitely only with 20 years of Canadian residence after 18.
• Without the 20 years, OAS stops six months after you leave Canada.
• The Canada-Israel agreement can count Israeli residence toward the 20-year test.
• GIS does not travel beyond six months abroad; CPP is paid anywhere with no residence test.
• New immigrants get a 10-year Israeli tax exemption on the foreign pension under Section 14.

When to Consult a Lawyer

This question typically requires professional legal advice when:

• You are short of 20 Canadian years and need the agreement to preserve OAS portability.
• You need to coordinate Canadian withholding tax with the Canada-Israel treaty and your Israeli status.
• You are timing aliyah to capture the 10-year exemption on your pensions.

A qualified Israeli lawyer working with a Canadian adviser should map your residence history before you move, because the 20-year line decides whether OAS follows you.

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Speak With an Israeli Attorney

We help Canadian retirees document Israeli residence for OAS portability through Bituach Leumi, coordinate the Canada-Israel treaty position on pension withholding, and structure aliyah timing to use the 10-year Israeli tax exemption.

Contact us for a confidential initial consultation.