dunnee
3/5/2017 17:18 EST
@ .75cents to the USD it hard at this time for our Canadian friends to move to Panama.
Is there a bright side for the move at this time that I can share with those waiting to make the move here from Canada?
Regards.
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Soontogo
3/5/2017 17:30 EST
Hold tight and wait a while or move with as little currency as you can. If possible set up an international currency account and only transfer minimums for a while. The USD is currently overvalued and Canada and Sterling undervalued. This will change, especially with Trump as top dog. His international interests suffer poor returns in the current climate. Holding an international account in Singapore or Hong Kong can also be a very favourable thing if you can open one.
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ranadelnorte
3/5/2017 17:52 EST
@dunnee: you've given an important reminder to factor in exchange rate risks when planning an international move. Euro holders are suffering too because of the strong USD.
Unlike the U.S., Canada does not tax world-wide income, so with careful planning and good advice from financial advisors, there might be benefit to becoming a non-Canadian resident for tax purposes.
If your friends' only income is from Canadian pension sources, it will be difficult to offset the exchange rate at this time.
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dunnee
3/5/2017 18:35 EST
Wow, I just given an update, now @1.33 CA vs USD
Thank you for the input.
One group sold their home and the other is up for sale. Both have good pensions for Panama and do/will have enough to buy a home and car here when ready.
Regards.
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SunsetSteve
3/5/2017 18:56 EST
i have found it to be more uplifting to be converting to COL Pesos on my Android. And as someone pointed out elsewhere, both the CAD dollar and the COL peso tend to track the price of oil, so one might expect a degree of exchange stability.
Spending CAD in PA is a DRAG.
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vulcan900
3/11/2017 22:04 EST
Canada does tax world income. If you have a condo or home you are renting out and do not report the income there is a 5% penalty of the condo or house per year so if 20 years you are doing this and they find out the Canadian government now own your condo or house.
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SunsetSteve
3/12/2017 07:41 EST
Canada only taxes world wide income if you are a resident of Canada, not if you are a non-resident Canadian citizen.
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StanleySankey
3/12/2017 08:16 EST
Even if you are non-resident there is a withholding tax on CPP and OAS or other pension payments as well as withdrawls from your RRSP. The rate depends on your new country of residence. For Panama that is 25%.. If you have property that you are renting out via a non-arms length arrangement. For example not using a registered property management company that is sending the correct forms annually to CRA. You can and most likely will be deemed a non-resident no matter how long you have been out of the country and will be subject to taxation on all your income no matter in which country it has been earned..
http://www.cra-arc.gc.ca/E/pub/tg/t4061/README.html
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SunsetSteve
3/12/2017 08:32 EST
Correct - whether or not a person is a non-resident is a question of fact and depends on a number of factors - such as whether economic ties have been severed or maintained, whether a residence is owned (and not rented out to your family while you are away). But renting to an unrelated person it is unlikely to deem residency in and of itself. There are well-recognized steps to take that will ensure non-resident status is maintained, in which case you are not taxed on world-wide income.
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ranadelnorte
3/12/2017 10:24 EST
@Stanley
Yes, the withholding on Canadian-source pensions is 25% for residents of Panama, BUT that amount can be reduced to a more reasonable level by filing an NR5 form under section 217. Please speak to a tax accountant experienced in such issues.
Good luck!
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Kohl
3/12/2017 11:36 EST
Eventually...8-(
Yes, you have to declare world wide income.
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ranadelnorte
3/12/2017 12:20 EST
@Kohl
Don't think anyone is suggesting not to declare world-wide income if you are a non-resident of Canada for tax purposes. But Canadians don't have to pay income taxes on world-wide income, unlike our U.S. cousins have to do.
By your "eventually" comment, perhaps you mean the time it takes to obtain an initial ruling on reduction in the amount withheld from Canadian source pensions and RRIFs? It took CRA about 10 months to give me a reduction. Tax returns filed under section 217 don't seem to be a priority for CRA either. It has taken up to 12 months to get a refund. Enforced savings -LOL.
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SunsetSteve
3/12/2017 12:22 EST
Kohl - I hope you aren't confusing US law with Canadian law - nor your google searches with my law degree! ;=) Unlike the US, Canada taxes on the basis of residency, NOT citizenship.
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Kohl
3/12/2017 13:17 EST
It took 18 months for my spouse to get a 'refund' of the withheld taxes and am still waiting for mine 18+ months.
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