# Transferring foreign savings into Canada?



## indexxx (Oct 31, 2011)

I lived abroad for five years (Cayman Islands) and have a small pension that I earned while a non-resident of Canada. With non-resident status, I was exempt from paying tax on my foreign earnings, and the money in my Cayman bank was earned while I was living there. I would like to bring this into Canada to invest; are there any implications tax-wise, etc? It has been increasing in value in my Cayman pension fund, but I feel I can do better investing on my own. The amount is somewhere between $8-10,000. Thanks!

EDIT @ cdpennystocks:

When you live outside of Canada for longer than 2 years to the day, you are eligible to claim non-residency provided you satisfy certain criteria. Basically you must sever most legal ties to Canada and cannot receive any of the benefits that residents get- so no health care, no Canadian address, no increase in your TFSA or RRSP room, no vehicles licensed in your name, and many other things. Was it worth it for me? Well, I made non-taxable income for five years, but also could not contribute to my RRSP for that length of time, so it probably evens out in the long run. Fun place to live tho... a five year tropical vacation!


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## cdnpennystocks (Oct 27, 2011)

Sorry cant help but very interested in the answer. How did you achieve non-resident status? I make money online and could take my income anywhere if I wanted, I was considering doing the non-resident thing.


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## kcowan (Jul 1, 2010)

You need to check the tax treaty to see whether the income is considered a pension here in Canada.


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## indexxx (Oct 31, 2011)

@kcowan:

To my knowledge, the Caymans have no tax treaties with any nation, as there is no taxation in the Cayman Islands, and I remember discussing this with someone while I lived there. But this is not really what I meant in my question; the money is sitting in my work pension fund in the Caymans, earned while I lived there as a non-resident of Canada, meaning I was not required to claim any income nor pay tax in Canada during that period. Effectively, there is nothing to report to Revenue Canada about my earnings during that timeframe, as legally it's none of their business. So my question is this: if I wish to bring it in now, being a legal resident of Canada once again, am I required to claim anything?


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## Charlie (May 20, 2011)

if I understand you correctly, you earned the money while a non resident, and now just want to transfer over the balance? If so, there's nothing to report to CRA. Just bring it over. 

If it was over $100K you would have been required to do some foreign reporting once you were a cdn resident, but it seems that's not the case. You do mention that it's been increasing in value, so you may have some investment income to report -- either now or for past yrs. That investment income would have been reportable and taxable in Canada from the day you became a resident.


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## indexxx (Oct 31, 2011)

@ Charlie:

Yes, that's correct. And thanks for the answer- I'd asked on other forums before and nobody had any idea. Thanks!


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