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Canadian Pensions

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Armindo
  7/25/2016 13:35 EST

Khol,

As you know the Government of Canada doesn't make direct deposits in Costa Rica.
I'm still nervous about this situation because if I take the money from the ATM machine and deposit it here at Banco Nacional (our bank) I won't have any proof that the money came from outside of the country since the machine doesn't give me a receipt.
So I'm considering to ask my daughter who by the way has her name in our bank account to make a monthly transference to Banco Nacional.
I would really appreciate your view on this!
Thanks

Kohl
  7/25/2016 15:08 EST

Your daughter may not be able to make an International electronic deposit since she does not have a cedula. She may have to go into the bank and get the staff to do this, but it could cost approx. $50 to do so. We haven't found a Canadian institution that does this for free...8-(
We applied as Rentistas so didn't have this issue.

You can take a copy of your bank statements to a local accountant and get them to provide a notarized/certified letter stating that you have made the required transfers, prior to renewing your cedula.

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Armindo
  7/25/2016 18:03 EST

Khol,
I'm talking about my daughter sending the money from my pensions from our bank account in Canada.

Kohl
  7/25/2016 18:16 EST

Armindo, I understand that, but suggest you check with your bank, first.

escapefromnyc004
  7/27/2016 00:21 EST

I'm a little confused. Is this different because he is applying for residency or because the money is coming from Canada? I never had a problem sending myself international wires to banco nacional from the states. I pay my bank like 30 or 40 then banco nacional takes about 20 because I always receive less than I send.

Kohl
  7/27/2016 08:07 EST

No problem sending a bank wire ... and paying the fee, but I mentioned I don't think that the daughter can do an electronic transfer, except within other BCR accounts. As far as I know the daughter is not applying for residency, just assisting her parents who already have obtained Pensionado residency status and must prove that they have transferred/spent a certain amount of money in CR when renewing their cedula.

Our daughter helps with our banking but doesn't transfer funds into our CR account. We usually access our Canadian account, by using the ATM,

I could be wrong...8-)...but suggest they check with their CR bank.

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William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.
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Armindo
  7/27/2016 18:55 EST

We went to the bank.
Our daughter has a joint account with us and she can transfer money to our already existent bank account here. They gave us the codes!
However they suggested that we open a new bank account in American Dollars so that we'll pay less fees. Then they will change it to Colones.
We need another letter from the lawyer like we did for the first bank account.
The way our daughter is sending the money is like we used to when sending the fees to the company that takes care of our condo.
The bank also told us that every month we can go there to get a statement and to keep it to show the Government that we have transferred the amount required by law.
Later I'll tell you how it went!

JoIanMc
  7/28/2016 08:54 EST

Thanks for posting this. Lots of USA information online, less CDN. We are not quite at pension stage, but banking info helpful.

JoIanMc
  7/28/2016 08:54 EST

Thanks for posting this. Lots of USA information online, less CDN. We are not quite at pension stage, but banking info helpful.

Kohl
  7/28/2016 09:15 EST

As a declared ' non resident for tax purposes' suggest that you read this information,
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

Be aware that to start, 25% of your pension will be 'withheld'. You may be able to get this reduced .

So with the 'with held funds' and the bad dollar exchange, life may be more difficult than you would hope for.

You can claim the 'with held' amount on your tax refund.

JoIanMc
  7/28/2016 09:34 EST

I read the page and see nothing of withholding?

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William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.

William RussellWilliam Russell

William Russell's private medical insurance will cover you and your family wherever you may be. Whether you need primary care or complex surgery, you'll have access to the best hospitals & doctors available. Unlike some insurers, we also include medical evacuation and mental health cover in our plans (except SilverLite). Get a quote from our partner, William Russell.
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Kohl
  7/28/2016 09:43 EST

This is it:
Part XIII tax

Part XIII tax is deducted from the types of income listed below. To make sure the correct amount is deducted, it's important to tell Canadian payers:

that you're a non-resident of Canada for tax purposes; and
your country of residence.

The most common types of Canadian income subject to Part XIII tax are:

dividends;
rental and royalty payments;
pension payments;
old age security pension;
Canada Pension Plan and Quebec Pension Plan benefits;
retiring allowances;
registered retirement savings plan payments;
registered retirement income fund payments;
annuity payments;
management fees.

More info: http://www.cra-arc.gc.ca/E/pub/tg/t4061/t4061-e.html

As a 'non resident for tax purposes' you cannot own ANY property.

JoIanMc
  7/28/2016 10:42 EST

Thanks Kohl, we will not own any property but will try to have one bank account and one credit card. Will give up card if we have to but most say this will be fine.

Armindo
  7/28/2016 11:57 EST

In fact we spend much less money here than in Canada.
Even Yesterday we were talking about all these comments here how life by the beach is so expensive because of
electricity, etc.....
Talking about real estate: here that's where we found a condo that we liked with beautiful grounds (they say the swimming pool is the biggest one in Guanacaste) and the beach is just around the corner.
We buy meat, cheese and most groceries from grocery stores run by locals. We used to buy fish directly from the fishermen but now there is a
new place in our area where the fish is almost the same price and already cleaned.
We are not sandwich people!-Maybe because of our Portuguese background!-Every lunch we eat gourmet food.Then at dinner we may have some soup, cheese, other times we make soup from the fish stew leftovers which is delicious!-It's a typical Portuguese dish!-Sometimes we also have beef, it depends!-For breakfast?-Eggs, toast, fruit and fresh juice!
We buy fresh fruits and vegetables from the fruit stand and in the high season the vendors are close to our gate.The baker also comes by during the high season and a woman selling fish and shrimp.
Oh, we have wine with our meals!
About the electricity: we use one of our AC splits a lot during the night on and off. So sometimes our bill reaches 120.00-130.00.
Also: there are places in Canada certified by the Government where they can help you when applying to be an expat and they know how the 25% or less no none works!
Usually those who use their services are people for whom English is their second language but anyone can go there.
Now for the Canadians thinking about to apply for residency in Costa Rica (or somewhere else) there is a lady who lives close to Ottawa who will charge a fee of $250.00 but once you send her your documents she will take care of everything.She will make the required deposit in the Embassy of Costa Rica bank account which can only be done in Ottawa and in Vancouver.
She will take the documents to a lawyer to be notarized and to the Foreign Affairs and to the Embassy.
When she took mine the Ambassador came to greet her!
She also sent them to my lawyer's office in San Jose via DHL.
Remember: the Immigration lawyers know about the law in Costa Rica but there were some "details" that she knew.She was the first person to tell me that even though she had my documents from the Portuguese Embassy, that they wouldn't be accepted because both Portugal and Costa Rica are part of the Hague Convention and the original had to come Apostiled directly from the country of origin.I contacted the Portuguese Government and they told me that the Embassies don't have the power to do so. Because I took care of it right away my process here was quick.
Even though she was suggested to me by my lawyer, who at the time didn't know she charged a fee....really?...the woman is a hairdresser and a single mother and she has to take 1 or 2 days off work to go to Ottawa to take care of our papers and she thought she worked for free!-See how much the lawyers charge us for a simple letter!-like I was saying, it doesn't matter what lawyer you use here in Costa Rica, you still can use her services!
If anyone wants her email I can give it here but please don't send her any junk email. Her name is Diane Guy and her email is: [email protected]
We paid her through an E-Transference from CIBC. In fact one of our neighbors here few days ago didn't know how to pay her because she doesn't have a Canadian bank account.She lived in the States for many years!-So out of compassion we sent Diane the money and our neighbor paid us in American Dollars.

Kohl
  7/28/2016 12:13 EST

Obviously, if you own a property here in Costa Rica there will be less funds paid out when not paying a monthly rent...but no everyone can do or even want to do this.

JolanMc, I meant you cannot have property. car, etc in Canada.

JoIanMc
  7/28/2016 12:46 EST

Yes, Kohl, I meant no property in Canada. Sever ties. Only keep one card to keep a credit history in Canada, and an account for pension.

JoIanMc
  7/28/2016 12:50 EST

And yes armindo, I do find many prices equal to Canada. I guess it's not as much of a sticker shock for us, lol. But paying for health care will be a bit of a change, and take some getting used to!

Armindo
  7/28/2016 18:26 EST

In our case we pay $56.00/month for 2 but I've read here how expensive it can be for those under 55.

Armindo
  7/29/2016 11:31 EST

Update: My daughter just told us that the lady at the bank told her that her parents are very well organized.She was very pleased that we had given all the information she needed (codes,etc...) and that we had thought in advance to add our daughter to our bank account!
Thank You Lord Jesus!

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