Hi:
What else do you have to give up if you want to escape the cold Canadian winters and the high income tax rate? Well, there actually is quite a bit.
As I mentioned yesterday, to be a non-resident of Canada you must be a resident of somewhere else. If you are not a resident of Canada, why would you need the Canadian health system?
Not to fear. Contrary to opinion touted by some, we do not have the best health care system in the world. There are many, many countries with excellent care.
You must also give up your credit cards, club membership, video store memberships and driver's license. Of course this can be done over time, as you set up residency in your new country. But while you still have all those things you still are taxable on your world-wide income in Canada.
You may keep property in Canada, but it must be rented at arms-length. That means you can't put your son or daughter in and charge them nominal rent so you can come back at will. You must use an agent. It is also recommended that you stay out of Canada for at least two years. Arrange your holidays so your kids come and see you, or go to a U.S. border town and meet them there.
This seems like a terrible amount of bother. Why would anyone do it? Well, the answer lies in the tax system. More tomorrow.
M.
retirement and expatriates
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