# Retire outside of Canada (temporarily)



## Retireineurope (Sep 14, 2018)

My wife and I have been researching the possibility of temporarily (for a few years or 5 maybe) retiring outside of Canada. If we decide to move outside of Canada for a few years what do I HAVE to do with my finances? This will not be a permanent move, we will return to Canada at some point in the future 

I receive CPP and will start OAS next year.

There seems to be subjective information on the .gov website. I have searched on the internet for lawyers with experience in emigration but came up with nothing.


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## Eclectic12 (Oct 20, 2010)

Are you cutting residential ties to Canada to no longer a Canadian tax resident?

If so, there is the departure tax where certain property including stocks held in a non-registered account are deemed to be sold, triggering capital gains taxes. There is an option to defer these taxes until selling but there is a threshold that requires leaving adequate security.
https://www.canada.ca/en/revenue-ag...a-non-residents/leaving-canada-emigrants.html


If not, you'll have to file a Canadian tax return.


Cheers


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## AltaRed (Jun 8, 2009)

It may even be more complicated than that. Tax treaties usually have tie-breaking rules, so even if the OP wanted to continue to file Canadian tax returns each year as a tax resident of Canada, the host country may have different ideas on how the OP should be taxed. The question really comes to where does the OP have the most ties.

Also not sure about the references to emigration. The OP is not emigrating if the OP intends to return. At most, the OP is looking for the appropriate Visa to live in the desired host country for X years.

Am also confused as to the reference to the .gov website. AFAIK, all Canadian government websites end in .ca


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## ian (Jun 18, 2016)

We were told by our tax accountant that it can be ‘tricky’ even though our plans included disposing of real estate. We were looking to travel for a few years and dodge the tax on two years of high income in post retirement. 

Even when you do follow the ambiguous rules you will be subject to a potential no fun CRA audit and deep dive. Bottom line, we were advised, would mean cutting all financial ties, medical coverage, etc. Our situation may have been different from yours however that is the advice we received.

We decided to pay the freight. Canada has been good to us and we feel that on balance we get value for our tax paid


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## Longtimeago (Aug 8, 2018)

This is a topic with which I have personal experience as well as having known many people who have also done so.

The first question you have to have an answer for is whether you CAN legally move to a country in Europe for a period of years or not. Until you answer that question, there is little point in anyone offering any advice on anything else.

Beyond that, two basic questions are what country or countries are you interested in moving to. Answers on various aspects of such a move will vary by country.

Second, do you or your wife have any Dual Citizenship that you expect to get you legal residency in your chosen country? So do you or do you only have Canadian citizenship and just have this idea of moving to Portugal, or France or wherever for a few years?

Side note to AltaRed. The Immigration rules apply to any period of time beyond what a Tourist Visa allows you. I know of no country that offers 'Temporary Visas' of multiple years duration. If you want to stay long term, you 'immigrate', end of story. I also know of no countries in Europe where you can LEGALLY use back to back tourist visas to stay longer. The Schengen member countries of Europe for example do offer multiple entry visas that can be valid for 1, 3, or 5 years but they are multiple ENTRY visas only and you still have to comply with the 90 days in any 180 calendar day period rule. The 5 year visa just means you don't have to apply for a new visa each time you enter.

So the typical Canadian with no Dual Citizenship who wants to spend continuous years in Europe, can in fact only stay 90 days in every six months unless they immigrate to a specific country and that sure as heck ain't easy unless you have lots of money believe me. For example the Spanish Golden Visa is a well known way of doing this and all you have to do is invest 500,000 Euros to get the visa. But even doing that only gets you the right to live in Spain, you are still subject to the 90 in 180 rule if you want to spend time in any of the other Schengen countries. Portugal has basically the same type of visa available as well.


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## Longtimeago (Aug 8, 2018)

Ian, it took me 3 years to become 'non-resident for tax purposes'. I had to cut all ties including bank accounts, property, driver's license, etc. Part of why it took so long was that I also avoided paying the 'departure tax' that Eclectic12 refers to. I did that by not declaring I was 'departing'. Once out of the country I then started transferring all funds out of the country LEGALLY until there was nothing left in Canada to tax. There's no law that says you can't take your money out of Canada to fund your ongoing 'vacation' of multiple years duration. LOL


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## diharv (Apr 19, 2011)

May be better and easier in the long run to keep a base in Canada and come and go as you please, max three months in any one country. That's what we were thinking of doing in the future.


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## ian (Jun 18, 2016)

We both have patriality status in the UK which allows us to stay as long as we want, work, etc..even go on the dole or the NHS. I believe the only thing that we cannot do after stepping of the plane is vote. Our son also has it. He got off the plane and within a day had a job lined up and a National insurance number sorted. No tax issues though! But their tax regime is not an improvement on ours.

But the above advice is correct. You cannot simply leave for several years. Our accountant went through the many ways that we would have to ‘disconnect’ from Canada, including those that LTA mentioned. We were not prepared to go that far. And even then we would be subject to audit if we subsequently returned to Canada. Which we planned on doing. CRA are no dummies, they can add one plus one and get two.


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## james4beach (Nov 15, 2012)

I spent 5 years in the US, and even in that situation it would have been difficult to fully cut Canadian ties and become a non resident for tax purposes. I ended up keeping Canadian tax resident status as I judged it to be the easier option, considering that I eventually wanted to return to Canada. That's despite the potential tax savings of only paying taxes to the US. Taxes aren't everything.

The main reason I kept the Canadian ties was the mountain of work to fully disconnect from Canada, combined with the additional pain of re-connecting to Canada later. This is not easy. I'm glad that I kept the Canadian status, and glad I kept filing Canadian taxes all these years.



AltaRed said:


> Tax treaties usually have tie-breaking rules, so even if the OP wanted to continue to file Canadian tax returns each year as a tax resident of Canada, the host country may have different ideas on how the OP should be taxed. The question really comes to where does the OP have the most ties.


Right. Someone with footprints in two countries fall into this grey zone and tie-breaking rules start to come into play. Both countries want you as a tax resident, so they can tax you. Who wins? As AltaRed says, the "ties" are what really answer the question.

A practical reality is that you must choose your tax residence country (one country) and commit to it. Countries do not like seeing you disappear and declare yourself a non-resident seemingly just to stop paying taxes, _when all other indications show that you still have deep ties_. Where are all your bank accounts located? Where are all your investments? Where is your RRSP or other pensions? If you are going to claim that you are now a foreign resident, then you really have to commit to it, which also means moving all your money to the foreign country.



Retireineurope said:


> My wife and I have been researching the possibility of temporarily (for a few years or 5 maybe) retiring outside of Canada. If we decide to move outside of Canada for a few years what do I HAVE to do with my finances? *This will not be a permanent move, we will return to Canada at some point in the future*.


I think the answer to your question is in your own text. You are saying you want to _temporarily_ leave Canada and will be returning. That tells me you probably should remain a resident of Canada for tax purposes. You should continue filing taxes as normal in Canada. If the question comes up in the foreign country, you would tell them you are a non-resident in their country. This is because you are a resident in Canada, still paying taxes in Canada, and only plan to be in that foreign country temporarily.


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## AltaRed (Jun 8, 2009)

But as LTA said, one cannot just go to another country. Unless one has some prior ties that allow one to do that such as Ian, there a a lot of paperwork involved to 'reside' in host country.

I take issue with some things James says about "ties". Financial banking and investment accounts are not material factors in "ties". Things like a residence, or a lease, club memberships, professional memberships, family and dependents, driver's license, health insurance count far more than financial accounts.


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## james4beach (Nov 15, 2012)

AltaRed said:


> But as LTA said, one cannot just go to another country. Unless one has some prior ties that allow one to do that such as Ian, there a a lot of paperwork involved to 'reside' in host country.


That's true, good point



> I take issue with some things James says about "ties". Financial banking and investment accounts are not material factors in "ties". Things like a residence, or a lease, club memberships, professional memberships, family and dependents, driver's license, health insurance count far more than financial accounts.


There are a list of things which matter for closer connections / centre of vital interests. Permanent home and driver's license are big ones. There's a longer list in this article which describes the decision of the Tax Court of Canada in Wassick v. M.N.R.
https://wolterskluwer.ca/blog/the-g...ing-a-non-resident-for-canadian-tax-purposes/



> Many people wrongly think that staying out of the country for 183 days or more each year translates into being a non-resident-certainly that is not the case.
> 
> In most cases, residency for Canadian tax purposes is based on what is often called “factual residency”.
> 
> ...


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## Longtimeago (Aug 8, 2018)

diharv said:


> May be better and easier in the long run to keep a base in Canada and come and go as you please, max three months in any one country. That's what we were thinking of doing in the future.


That you can certainly do quite easily diharv. You are simply going on 'vacation'. However, think again when you write, "in one country". If the OP is talking about Europe as his name suggests, that will probably involve the Schengen countries. You can only stay 90 days in every 180 calendar days in all the Schengen countries COMBINED, not in EACH member country. So you can't spend 90 days in Spain and then just cross the borer to Portugal and spend another 90 days there for example. You must leave the Schengen 'Zone' for 90 days before re-entering into any Schengen member country. It's not that easy to just continue staying in Europe beyond 90 days given that 26 of the countries in Europe are members of Schengen. 

If you are not familiar with Schengen, read here: https://www.schengenvisainfo.com/schengen-visa-types/

The only way to stay continuously in Europe beyond 90 days is if you move from a Schengen to non-Schengen country repeatedly. So 90 days in Spain, 90 days in the UK, 90 days in Portugal, 90 days in Turkey, 90 days in France, 90 days in ..........etc. etc.


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## Longtimeago (Aug 8, 2018)

ian said:


> We both have patriality status in the UK which allows us to stay as long as we want, work, etc..even go on the dole or the NHS. I believe the only thing that we cannot do after stepping of the plane is vote. Our son also has it. He got off the plane and within a day had a job lined up and a National insurance number sorted. No tax issues though! But their tax regime is not an improvement on ours.
> 
> But the above advice is correct. You cannot simply leave for several years. Our accountant went through the many ways that we would have to ‘disconnect’ from Canada, including those that LTA mentioned. We were not prepared to go that far. And even then we would be subject to audit if we subsequently returned to Canada. Which we planned on doing. CRA are no dummies, they can add one plus one and get two.


Umm, actually the CRA don't always 'add one plus one and get two' ian. When I left, I did not plan to return and so chose to cut ties to avoid having to file tax returns in Canada. But when I did return to Canada obviously my residency became Canada again and I had to start reporting income and filing a tax return with the CRA. So now picture it. After years of no tax return, suddenly I file one. Now it would seem reasonable to expect them to ask some questions. But nothing happened at all, I filed for that first year and heard nothing other than receiving the usual letter of Assessment basically saying my calculations were correct. I was as if I had never left.

On a side note, I have UK citizenship and it annoys me that Brexit has now occurred since that gave me the right to live and work in all the EU countries. I probably won't want to go and live in any of them in the future now but nevertheless it's annoying to have that right taken away.


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## Longtimeago (Aug 8, 2018)

AltaRed said:


> But as LTA said, one cannot just go to another country. Unless one has some prior ties that allow one to do that such as Ian, there a a lot of paperwork involved to 'reside' in host country.
> 
> I take issue with some things James says about "ties". Financial banking and investment accounts are not material factors in "ties". Things like a residence, or a lease, club memberships, professional memberships, family and dependents, driver's license, health insurance count far more than financial accounts.


It's not simple that's for sure AltaRed. There is a difference between being 'non-resident for tax purposes' and not paying taxes at all. You can be non-resident but must still pay taxes on income derived in Canada. The only way to avoid paying tax in Canada completely is to have no income in Canada. See here: https://help.hrblockonline.ca/hc/en...8-Tax-information-for-Non-residents-of-Canada

I would also take exception to james4beach's opinion that there is, "the additional pain of re-connecting to Canada later." I found no pain in doing so at all. 

On my return, I went to a bank, gave a temporary address I was living at until I got fully settled and opened a bank account with no problem. Especially when I told them to expect a deposit from an FX company to arrive in the next few days for a 6 figure sum. They did wonder why an adult had no Canadian bank account but my explanation of having been living elsewhere was easily enough understood. I had no difficulty getting a credit card from the bank after my first large deposit landed in the account.

I had an old expired (by years) Ontario license and that was accepted by the BC license office and a new BC driving license issued affective immediately with no problem. 

I had no difficulty renting a temporary home through a Real Estate agent and paying with an existing UK credit card for a couple of months in advance. 

Nor was there any difficulty in getting on the BC Provincial Health Care system other than a mandatory 3 month waiting period before coverage begins. Knowing that was going to happen I had purchased private insurance to cover that period. Various names are used for this kind of insurance such as 'Immigrant Insurance'. 

So really, I had all of that dealt with within a few days of stepping off the plane in Canada. I think people may anticipate more difficulty than actually exists when you are a RETURNING Canadian.


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## Eclectic12 (Oct 20, 2010)

AltaRed said:


> ... I take issue with some things James says about "ties". Financial banking and investment accounts are not material factors in "ties".


Why does CRA list them as factors on their "Determining Tax Residency" page if they aren't material factors?




AltaRed said:


> ... Things like a residence, or a lease, club memberships, professional memberships, family and dependents, driver's license, health insurance count far more than financial accounts.


That's not the hierarchy I read on the CRA web page.

The primary residential ties are residence, a spouse or common-law partner in Canada or dependents in Canada.

The secondary residential ties that may be needed include economic ties. The examples are bank accounts and CCs but I'd expect investment accounts would fall into this category. AFAICT, the secondary ties which includes economic as well as pro memberships, driver's license, passport, provincial health card etc. seem have the same weight.
https://www.canada.ca/en/revenue-ag...-moved/determining-your-residency-status.html


Cheers


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## Eclectic12 (Oct 20, 2010)

Longtimeago said:


> ... After years of no tax return, suddenly I file one. Now it would seem reasonable to expect them to ask some questions. But nothing happened at all, I filed for that first year and heard nothing other than receiving the usual letter of Assessment basically saying my calculations were correct. I was as if I had never left ...


What sort of questions were you expecting?

As I recall, you said it was a process to get non-resident status so barring a CRA algorithm finding something to investigate on the first tax return on returning to Canada - what's in for them?

Filling the return means paying taxes so there seems no reason for CRA to question receiving more tax revenue.


Cheers


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## AltaRed (Jun 8, 2009)

Eclectic12 said:


> Why does CRA list them as factors on their "Determining Tax Residency" page if they aren't material factors?
> 
> 
> 
> ...


Whatever you say.... I recognize what the CRA web page says but don't forget it is the tie breakers in the specific tax treaty that really matter. Not necessarily what a generic CRA webpage says. 

Many people leave financial accounts behind when they leave for another country but they aren't likely to keep a club membership or a DL or a health card if they don't intend to return. It's simply common sense.

I always went by what the PWC partner for International tax communicated to me and what they had to do at least once when CRA and IRS disagreed. The message I always received was not to worry about financial accounts but definitely sever ties that imply intent to reconnect physical presence.


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## Eclectic12 (Oct 20, 2010)

Sure ... but without knowing the country and tax treaty where the examples are US based, there's lots of room for error.

Where I'd disagree with James on financial accounts is that I don't believe RRSPs count for diddly squat. Non-registered (NR) investment accounts likely count for as much as a bank account. Plus a lot of the comments are to move NR investment accounts and leave RRSPs where they are.


Cheers


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## AltaRed (Jun 8, 2009)

I agree given the difficulty trading NR accounts while ex-country, it probably makes sense to move that money with oneself anyway.


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## james4beach (Nov 15, 2012)

OK, maybe RRSP doesn't count for anything in the residency determination. I know that permanent residence / home is the most important thing there.

However I stick with my claim that swapping tax residency between countries causes extra hassles on the banking & investment side. For example as a non resident for tax purposes, accounts have some limitations placed on them and I believe that some kinds of trades are no longer possible. The accounts are not fully functional any more, as echoed in this blog post. There's deemed disposition too, obviously.



> My experience, Karl, has been that many Canadian non-residents have issues with respect to their financial institutions not working with non-residents. Or they are limited in terms of the investments that they can buy within their RRSP or within other investment accounts.


In the US, I encountered many challenges when I tried flipping tax residency statuses (back when I wasn't sure what to call myself). Banks did not like changing residency status. Once I discovered that, I kept all US accounts as non-resident for consistency. I think it's a safe bet that I would have had additional hassles if I kept those US banks as resident for a while, only to make them non-resident later.

Now admittedly that could be a US specific thing, but Europe is also known for having tons of regulations, so it may not be too different.

Based on my own experience, I would call a 5 year departure from Canada only a temporary (vacation) absence and it's not long enough to justify changing your tax residency status.


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## james4beach (Nov 15, 2012)

Eclectic12 said:


> Why does CRA list them as factors on their "Determining Tax Residency" page if they aren't material factors?
> ...
> That's not the hierarchy I read on the CRA web page.


For what it's worth, here is how my dual-country tax expert worded my declaration that tells the US that I am a resident of Canada and not a resident of the US. I don't have a spouse or dependants. Should be noted that I also don't own real estate, so my investments are in fact my entire net worth and this might be why the expert thinks it's noteworthy that my investments are all in Canada.

(paraphrasing) "My permanent home is in Canada and I am only temporarily in the USA on a temporary permit; therefore, I am a resident of Canada and not a resident of the US. My center of vital interests are also in Canada, since my investments and economic connections are all in Canada."

The expert is citing, in order:

- where my permanent home is
- temporary nature of visit to the foreign country (supported by permit / visa having a limitation)
- center of vital interests, location of investments

The US has not challenged or questioned this over 5 years so the argument appears to hold weight with the IRS, at least under the Tax Treaty between these two countries.

The expert also suggested I continue using my Canadian DL, which I did. Over the years, I have also frequently travelled back to Canada so I have spent significant time in the country. Most of my mail went to Canada. My US tax filings had my Canadian address on them, not my "temporary" US rental. Even my US bank accounts had my Canadian address on them.

Obviously my situation could be very different than someone else's, but that's how it played out for me. Physically, I was outside of Canada over 80% of the year, but remained a resident for tax purposes.

My expert did say at the outset that I also could call myself a resident of the US and non-resident of Canada, but this would only make sense if I think my departure from Canada is permanent and that I wouldn't return. I clearly did intend to return (and have).


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## Retireineurope (Sep 14, 2018)

Longtimeago said:


> This is a topic with which I have personal experience as well as having known many people who have also done so.
> 
> The first question you have to have an answer for is whether you CAN legally move to a country in Europe for a period of years or not. Until you answer that question, there is little point in anyone offering any advice on anything else.
> 
> ...


We are going to my wifes "home" country so no visas are required


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## Retireineurope (Sep 14, 2018)

Thanks for all the replies. 
I would like to clarify a few things/issues.

We are going to my wife's home country as she would like to spend some time with her aging parents. The cost of living in her country is incredibly low 
and we estimate spending $1500 per month
Upon my arrival I need to apply for residency on a yearly basis.
I aim to keep my Canadian investments (LIF RRIF TFSA no non registered account) as the dividends generated and CPP will be our source of income
I have no Canadian real estate
My rental apartment will be used by my daughter until we return.
As stated in my OP I DO NOT want to "cash out" my RIF and LIF
If (never say never) we decide to stay in Europe then I will permanently sever all financial ties with Canada


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## Longtimeago (Aug 8, 2018)

I don't know why you are not saying which country and advice will depend on which country it is for several aspects. The more background info you provide Retireineurope, the more relevant responses can be. It all starts with what country are you talking about?

I will go back to your OP and give you the simple answer to your question of 'what do I HAVE to do with my finances?' The simple answer is, there is nothing you have to do that you are not already doing,in Canada. You can simply continue to file a tax return each year in Canada reporting your worldwide income. That is what you have to do as far as Canada is concerned BUT what the other country requires you to do as a RESIDENT of that country depends on which country you are talking about. 

That country may as part of granting you legal residency, require you to file an income tax return there as well. Or you may be able to ELECT which country you will pay income tax to. My wife again as an example, elected to pay income tax in Canada since she is in fact living here and being provided the benefits that Canada provides to all Canadian residents. Some people in the same situation in fact do not elect to change and continue to pay taxes in the country they have left, for various reasons, not least of which is if the tax rate in that country is lower than in the country they have moved to. This all depends on whether there is a tax treaty between the two countries and what it allows or does not allow. 

When you are talking about a period of years as you are, you will in fact be an 'immigrant' in that country and will have to deal with what that entails, whether you are planning to live there permanently or not. In other words, it's 'permanent' until you decide to leave. So really, you should get the idea of 'temporary' out of your head and look at it as any other immigrant to that country needs to do.


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## AltaRed (Jun 8, 2009)

Retireineurope said:


> Thanks for all the replies.
> I would like to clarify a few things/issues.
> 
> We are going to my wife's home country as she would like to spend some time with her aging parents. The cost of living in her country is incredibly low
> ...


It would have been helpful to have known these details in your first post so that the responses could have been more focused.

With only registered accounts, there is no need to cash them out and no crystallization of cap gains (departure tax) accordingly. You do have to sort out WHERE you will be considered a tax resident according to the tie breaking rules in the tax treaty between Canada and host country X for that period of years as LTA has said. You can't just 'decide' on your own necessarily and you will have to let your holder of your registered accounts know so that the appropriate taxes will be withheld from your LIF and RIF payments. Not only that, the FI holding your registered accounts may ask you to take your business elsewhere and you need to do that before you leave Canada.

Added: Keeping your rental apartment with a lease will be one of the things Canada will look for in determining ties to Canada. Also, you don't say whether you will have dependents remaining in Canada (assuming your daughter is an adult and not a dependent), nor have you said what you plan to do about keeping any other ties to Canada such as a driver's license. Presumably you will give up your health card since you will run out of 'qualification' in 6 months anyway. All of those things matter and need to be thought through.


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## Eclectic12 (Oct 20, 2010)

Just to reinforce the importance of knowing the details the tax treaty between Canada and host country X, consider those who moved from Canada to become a UK tax resident. Despite there being a Canada - UK tax treaty, lump sum withdrawals *are double taxed* with no relief provided!
https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt4617

Knowing this in advance likely would push one towards making sure the withdrawal is periodic and not classed as a lump sum.


Cheers


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## Longtimeago (Aug 8, 2018)

Eclectic12 said:


> Just to reinforce the importance of knowing the details the tax treaty between Canada and host country X, consider those who moved from Canada to become a UK tax resident. Despite there being a Canada - UK tax treaty, lump sum withdrawals *are double taxed* with no relief provided!
> https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt4617
> 
> Knowing this in advance likely would push one towards making sure the withdrawal is periodic and not classed as a lump sum.
> ...


Good example Eclectic12. I think the threshold for the 25% withholding tax is $10k (I know it used to be). So you make multiple withdrawals of under $10k each time. I don't recall there being any limit on the number of withdrawals in a given period of time at all. 

There are a lot of little known factors that moving to another country result in and that most people are not aware of. 

One example of something people who spend large amounts of time working abroad (not retiring) often discover only when they reach retirement age is that OAS is paid based on 40 years of residency in Canada after age 18. So work it out, if someone spends a total of more than 7 years living and working outside of Canada before age 65 and then apply for OAS, they will lose 1/40th of the maximum OAS payment for each year over 7 years they have been absent. This often comes as a surprise to many people in such a situation. It is a particularly unpleasant surprise to those who have spent considerable time working abroad, retire early and had planned on having OAS kick in at 65 for the full amount. Oops.

Someone who immigrated to Canada as an adult and then retires to their 'home' country can experience the same surprise because they have less than 40 years residency in Canada during their 18-65 years. Many immigrants do return to their home country in retirement, some nationalities more commonly than others.


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## Eclectic12 (Oct 20, 2010)

Not sure about RRSP/RRIF withdrawal size making a difference for a UK resident, as I thought the NR WHT was a flat tax. But then again, I'm not planning to retire there so I haven't dug into the details. :biggrin:


As for immigrants getting a surprise with reduced OAS back home ... YMMV, likely depending on financial literacy and commitment to max retirement funds. 

My co-workers wife isn't the least concerned about getting OAS to the maximum. 

Had she stayed in her home country, the old age payment for twenty years paying into the system yields a monthly pension of about sixty dollars. The OAS pension a similar number years of three hundred dollars strikes her as an unexpected, generous windfall.

She's never looked that any of the articles on "how much could OAS pay" or the annual pension statement numbers that give max OAS/CPP as starting at age sixty five.


Cheers


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## Longtimeago (Aug 8, 2018)

Eclectic12 said:


> Not sure about RRSP/RRIF withdrawal size making a difference for a UK resident, as I thought the NR WHT was a flat tax. But then again, I'm not planning to retire there so I haven't dug into the details. :biggrin:
> 
> 
> As for immigrants getting a surprise with reduced OAS back home ... YMMV, likely depending on financial literacy and commitment to max retirement funds.
> ...


The same residency type rule applies to UK government pensions. A lot of UK citizens who retired early and moved to say Spain, expecting to be able to get paid the maximum government pension when they reached their official retirement age, have been surprised to discover they were not eligible for the full amount since they had left residency in the UK.

There are a lot of different things that impact those who choose to retire in another country and many of them are things people are not aware of until it bites them in the butt. Another common example is government land registries. There are countries in Europe in which they did not or still do not exist. So someone retires to a 'lower cost of living' country in Europe, buy a house and a few months later, there is a knock on the door. The person at the door tells them that the house they bought was not the seller's to sell. The person at the door is a cousin of the seller and this cousin at the door owns a part of this 'family' property. The buyer gets told, 'get out'. I"ve actually seen this happen and after being forced to vacate by the police, have had to enter into a long (years) court battle which in the end they lost. The seller is long gone and no money could be re-couped. Oops. This is not at all uncommon in 'lower cost of living' countries in Europe.

Others in Spain have had a knock at the door and someone telling them that their back garden with their swimming pool in it was going to have a road put through it. No recourse. Or the Police show up at your door to inform you that your house was built illegally and will be demolished and oh yeah, you will have to pay for it being demolished.

https://www.thisismoney.co.uk/money...in-We-want-cut-19ft-land--Ley-Costas-law.html

https://www.theguardian.com/world/2008/feb/06/spain.property

In many cases you can say it was the person's own fault for not doing their own due diligence but in many other cases, they really had no way of discovering this future problem at all. 

When you move to another country, you cannot ASSUME that things are the same as you are used to back 'home' and yet every year, thousands do just that. It is as if they left their common sense behind.


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