# Canadian based portfolio for non-resident - tax question



## Kalergie (Jan 7, 2011)

Hello all,

I have an entirely fictional case I would like to discuss with you and would be greatful for your input.

Imagine this:
I am European, a permanent resident of Canada and have lived in Canada for 4 years until now. As of today, I am working in the Middle East and will earn USD salary with tax-free status. I will also not move back to Canada for the foreseeable future. I have 500K to build a couch-potato-like portfolio but will have no investments in Canadian securities. I don't want to use a local Middle-East broker. Is there a way to have a portfolio based at a Canadian broker and at the same time keep a tax-free status on returns due to the fact that I am not a resident in Canada anymore? 

Thank you very much.


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## Guban (Jul 5, 2011)

Sounds like it would depend on your new country of residence. You would have to check the tax treaty with Canada. In general, I would guess there would be a non resident withholding tax.


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## OhGreatGuru (May 24, 2009)

Generally speaking Canada does not make it easy for non-residents to hold Canadian investment accounts. Too susceptible to tax evasion and money-laundering, and Canada doesn't wish to become an off-shore tax haven. I get the impression from reading other threads that it can be done under certain circumstances, and with the right financial institutions, but certainly not in a "tax-free" manner. (Other than pre-existing tax-deferred accounts such as RRSPs established while a resident)

To Site Administrator: This whole subject of Non-Resident taxation might warrant a separate Topic?


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## Kalergie (Jan 7, 2011)

Thank you for the answers so far. It appears that to get a 100% clarification I would have to speak to a professional who can assess my specific case. Can anyone give me a tip on where I can find this professional? My usual guy who files the taxes for me is probably not able to.


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## AltaRed (Jun 8, 2009)

Kalergie said:


> Thank you for the answers so far. It appears that to get a 100% clarification I would have to speak to a professional who can assess my specific case. Can anyone give me a tip on where I can find this professional? My usual guy who files the taxes for me is probably not able to.


The partners running the International Tax Departments of big firms like Deloitte Touche or Price Waterhouse Coopers, that deal with ex-pat tax issues, could help but that will cost you.


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