Thanks, Meg! (AND SO NICE TO SEE YOUR NAME AND FACE! HI FRIEND!) Commonwealth citizens need to have leave to enter/remain, which sadly I do not. But hope to get that in the next 5+ years!
I thought that might be the issue but thought I'd flag it up anyway in case it helps anyone else. Fingers crossed! (Also, hello! hello! We should complete the seven sisters at some point; that would be lovely. x)
The website Moneysavingexpert will probably be useful to you. It’s a well-respected site and has information on everything money related. If you sign up for the newsletter you get notified of special deals available, and you can track your credit score.
One of my brothers emigrated to Canada from the UK and he gave up his UK citizenship for tax reasons.
PoA is run through the Office of the Public Guardian. You can set one up relatively easily, but it’s taking about 9months for submissions to be approved so if you want someone in the UK to be able to make health decisions for you, you should start the process. In the UK you can have a health one as well as a financial one.
Thanks for all the info, Victoria! I check MSE, yep! Don't sign up for newsletters, as I think deals just promote spending. But it's a great site!
Interesting re: your brother! I can definitely understand it, but can't imagine ever giving up my Canadian citizenship. (Also, I'd still need to deal with Canada when I start withdrawing my investments, etc. so won't ever be able to escape completely anyway!)
And didn't know that about PoA! Sounds like it works differently here than in Canada. Thanks again!
Super interesting post Cait! I'm from the UK but lived in the Netherlands for a few years and was surprised when I returned that I needed to build my access to credit again! With hindsight I wish I kept access to the Lloyds account that I originally had where I had my UK credit card with but I went through a processes of consolidating my UK bank accounts and FX rates were top of my list with that and Lloyds was poor in that respect. I have pension pots in the Netherlands that I'll need to wrap my head around at some point, but I'm leaving that for my future self to deal with ;-)
I am going through almost exactly the same thing but with the US and Canada! I definitely didn't know about the OAS piece, so I may need to put a little more Canadian time on my future roster. It's so interesting about the license thing in the UK! When I got my New Jersey license, they let me keep my Ontario one. If you ever want to commiserate over the stress of figuring out the retirement/investment situation in both countries, I am here for it! (honestly keeps me up at night). So appreciate you sharing this side of your journey!
HI FRIEND! Gosh, this is a whole new world of personal finance to explore, isn't it? Darn you for getting to keep your license, haha. Though it kind of makes sense!? If my driver's license is linked to being a resident (and having an address), and I'm not one of those... should I be allowed to have it? I don't know lol. Definitely here for convos in the future! I try not to worry much about it yet, but also want to be informed so I'm prepared (or as prepared as I can be) when the time comes!
Wow, this is all so fascinating to learn about! Some of the things in this post are pieces that I never would have considered. I learned some new things today! Thank you for this putting together this series!
I love this series. I love learning the details of how other people navigate big life and financial transitions
My husband is Colombian Canadian and we have purchased a property in Colombia for future retirement and reside there for several months a year. There is alot to consider when moving to another country.
My husband has been in Canada since 25 so may not qualify for OAS either depending when we change residency.
Estate planning we have a Canadian will. But we spoke to a lawyer in Colombia and they have different laws. If I become a resident I will be subject to their estate laws. Which means if my husband were to pass away before me I have to split 50% of estate with his children or vice versa if I pass away first. But if I remain a resident of Canada my Canadian will would still apply to my Colombian property and we could continue our provisions we already planned for our blended family.
This is a concern for both of us as we don't want the insecurity of having to sell our home before we are ready.
I also don't want to rely Canadian benefits in retirement and I do have a future worry that the Canadian government may change what pension benefits Canadians may collect that reside outside of the country.
Wow, super interesting to learn what's true for you guys (so far), Stephanie! So does that mean you haven't made decisions about your will + residency statuses yet? (This would make sense to me, just curious for clarification!) And that's an interesting concern. Have you read anything that suggests that?
Interesting. I'm curious why you decided to maintain your tax residency in Canada?
Canada taxes based on residency. Generally, when you move and become a resident in another country, you will cease tax residency in Canada, and not be taxed there on your foreign income.
The year you leave or when you choose to cease tax residency, you file a part-year return for the part of the year you were tax resident of Canada. Going forward for tax purposes you are considered a non-resident of Canada.
There are some tax rules about emigrating so it really doesn't hurt to talk to a professional about it. For example, you cannot contribute to a TFSA a a non-resident, you don't generate more room, but you can continue to maintain the account.
As a non-resident, the only time you would file again in Canada is to report Canadian source income. For most people, that's rental income from Canadian real estate. If all your future self-employed income is earned while living in the UK (aka that's where you are doing the work) you don't report it to Canada.
For Canadian investments/retirement accounts, you should inform the financial institutions you are a non-resident. All your tax slips would be be on a NR4 non-resident slip and if it's anything like Canadians moving to the US, the appropriate tax will be withheld a source based on the tax treaty agreement. That way you don't need to file a tax return because Canada got their money.
Hi Jessica! Thanks for all of this. Do you work for the CRA? Haha. Or maybe you're an accountant. Either way, lots of great info in here, but I'll start by saying: I didn't maintain my tax residency in Canada? (Don't think I said that anywhere!) I file as a non-resident (and I don't invest in my Canadian accounts anymore, but yes they know I'm a non-resident now too). Unfortunately, I do have 1 Canadian income source that "doesn't do NR4's"—it is ridiculous. But, it's one source of book publishing royalties, so I can't really do anything about it!? Unless I opted out of the earnings altogether, which I'm not in a position to do right now.
Ooo thanks for letting me know, Jamie! And yea, I can't imagine it would do much more than pay for some groceries in 30 years lol. But cool to know I might be able to get some of it! Thanks again!
I have only lived in Canada! As someone who retired at 50...I would say over save for retirement! Is that a thing?! I only say this because I have a generous retirement pension that I paid dearly for while I was a full time educator. At the time, it was painful to see such a large amount going to my retirement, but now, living from that same pension, I am very grateful.
I lived in Japan for two years, and wasn’t required to lodge an Australian tax return for those years. (This was 20 years ago, so the rules may be different now.) And as a temporary resident of Japan, I didn’t need to lodge a tax return. So that was luckily all very easy!
I’m curious about the drivers licence ‘swap’ when you got your UK licence - if/when you go to Canada for a trip, does that mean you won’t be able to have your Canadian license with you, and therefore can’t drive while you’re there? How annoying, if so 🙃
I have a friend who spent most of her work life in Australia and has returned home to Scotland and has spoken about the pitfalls of navigating the two systems. She says it is with it!
I moved from Ontario to Quebec - but kept my company in Ontario - so there are fancy things I allow accountants to deal with (I am a corporation and not just self-employed). I will never get CPP as I have not paid into it enough. My husband has always worked on the Quebec side (even when we lived in Ottawa) so nothing really changed for him.
I think all of this is such an example of the personal in personal finance!
Hi Cait, re: electrol roll; you would likely be able to vote in your local council elections (at the very least) (https://www.gov.uk/elections-in-the-uk/local-government) as a qualifying Commonwealth citizen (https://www.electoralcommission.org.uk/i-am-a/voter/register-vote-and-update-your-details#commonwealth) if registered to vote. Although the deadline for registering for the upcoming set in May (if any in your area) is very soon. Obviously visa restrictions etc apply but thought I'd just flag that up.
Thanks, Meg! (AND SO NICE TO SEE YOUR NAME AND FACE! HI FRIEND!) Commonwealth citizens need to have leave to enter/remain, which sadly I do not. But hope to get that in the next 5+ years!
I thought that might be the issue but thought I'd flag it up anyway in case it helps anyone else. Fingers crossed! (Also, hello! hello! We should complete the seven sisters at some point; that would be lovely. x)
It would be! I don't have any trips planned down at the moment... but one day, I'd love to revisit that area and see you again! Hope you're well ❤️
Mi casa es su casa, of course. But yes, would be lovely to see you again. I'm well and enjoying seeing you post again.
Hi Cait
The website Moneysavingexpert will probably be useful to you. It’s a well-respected site and has information on everything money related. If you sign up for the newsletter you get notified of special deals available, and you can track your credit score.
One of my brothers emigrated to Canada from the UK and he gave up his UK citizenship for tax reasons.
PoA is run through the Office of the Public Guardian. You can set one up relatively easily, but it’s taking about 9months for submissions to be approved so if you want someone in the UK to be able to make health decisions for you, you should start the process. In the UK you can have a health one as well as a financial one.
Thanks for all the info, Victoria! I check MSE, yep! Don't sign up for newsletters, as I think deals just promote spending. But it's a great site!
Interesting re: your brother! I can definitely understand it, but can't imagine ever giving up my Canadian citizenship. (Also, I'd still need to deal with Canada when I start withdrawing my investments, etc. so won't ever be able to escape completely anyway!)
And didn't know that about PoA! Sounds like it works differently here than in Canada. Thanks again!
Super interesting post Cait! I'm from the UK but lived in the Netherlands for a few years and was surprised when I returned that I needed to build my access to credit again! With hindsight I wish I kept access to the Lloyds account that I originally had where I had my UK credit card with but I went through a processes of consolidating my UK bank accounts and FX rates were top of my list with that and Lloyds was poor in that respect. I have pension pots in the Netherlands that I'll need to wrap my head around at some point, but I'm leaving that for my future self to deal with ;-)
I am going through almost exactly the same thing but with the US and Canada! I definitely didn't know about the OAS piece, so I may need to put a little more Canadian time on my future roster. It's so interesting about the license thing in the UK! When I got my New Jersey license, they let me keep my Ontario one. If you ever want to commiserate over the stress of figuring out the retirement/investment situation in both countries, I am here for it! (honestly keeps me up at night). So appreciate you sharing this side of your journey!
HI FRIEND! Gosh, this is a whole new world of personal finance to explore, isn't it? Darn you for getting to keep your license, haha. Though it kind of makes sense!? If my driver's license is linked to being a resident (and having an address), and I'm not one of those... should I be allowed to have it? I don't know lol. Definitely here for convos in the future! I try not to worry much about it yet, but also want to be informed so I'm prepared (or as prepared as I can be) when the time comes!
Wow, this is all so fascinating to learn about! Some of the things in this post are pieces that I never would have considered. I learned some new things today! Thank you for this putting together this series!
I love this series. I love learning the details of how other people navigate big life and financial transitions
My husband is Colombian Canadian and we have purchased a property in Colombia for future retirement and reside there for several months a year. There is alot to consider when moving to another country.
My husband has been in Canada since 25 so may not qualify for OAS either depending when we change residency.
Estate planning we have a Canadian will. But we spoke to a lawyer in Colombia and they have different laws. If I become a resident I will be subject to their estate laws. Which means if my husband were to pass away before me I have to split 50% of estate with his children or vice versa if I pass away first. But if I remain a resident of Canada my Canadian will would still apply to my Colombian property and we could continue our provisions we already planned for our blended family.
This is a concern for both of us as we don't want the insecurity of having to sell our home before we are ready.
I also don't want to rely Canadian benefits in retirement and I do have a future worry that the Canadian government may change what pension benefits Canadians may collect that reside outside of the country.
Wow, super interesting to learn what's true for you guys (so far), Stephanie! So does that mean you haven't made decisions about your will + residency statuses yet? (This would make sense to me, just curious for clarification!) And that's an interesting concern. Have you read anything that suggests that?
We haven't made any final decisions yet. Still working out pros and cons of changing residency
Interesting. I'm curious why you decided to maintain your tax residency in Canada?
Canada taxes based on residency. Generally, when you move and become a resident in another country, you will cease tax residency in Canada, and not be taxed there on your foreign income.
The year you leave or when you choose to cease tax residency, you file a part-year return for the part of the year you were tax resident of Canada. Going forward for tax purposes you are considered a non-resident of Canada.
There are some tax rules about emigrating so it really doesn't hurt to talk to a professional about it. For example, you cannot contribute to a TFSA a a non-resident, you don't generate more room, but you can continue to maintain the account.
As a non-resident, the only time you would file again in Canada is to report Canadian source income. For most people, that's rental income from Canadian real estate. If all your future self-employed income is earned while living in the UK (aka that's where you are doing the work) you don't report it to Canada.
For Canadian investments/retirement accounts, you should inform the financial institutions you are a non-resident. All your tax slips would be be on a NR4 non-resident slip and if it's anything like Canadians moving to the US, the appropriate tax will be withheld a source based on the tax treaty agreement. That way you don't need to file a tax return because Canada got their money.
You will get the CPP when you retire.
Hi Jessica! Thanks for all of this. Do you work for the CRA? Haha. Or maybe you're an accountant. Either way, lots of great info in here, but I'll start by saying: I didn't maintain my tax residency in Canada? (Don't think I said that anywhere!) I file as a non-resident (and I don't invest in my Canadian accounts anymore, but yes they know I'm a non-resident now too). Unfortunately, I do have 1 Canadian income source that "doesn't do NR4's"—it is ridiculous. But, it's one source of book publishing royalties, so I can't really do anything about it!? Unless I opted out of the earnings altogether, which I'm not in a position to do right now.
Well that's a bummer about the royalties!
It REALLY is...
Hi Cait! There is a formula to get partial OAS based on how many years you lived in Canada, so you’ll probably get something! OAS isn’t a lot though.
Ooo thanks for letting me know, Jamie! And yea, I can't imagine it would do much more than pay for some groceries in 30 years lol. But cool to know I might be able to get some of it! Thanks again!
I have only lived in Canada! As someone who retired at 50...I would say over save for retirement! Is that a thing?! I only say this because I have a generous retirement pension that I paid dearly for while I was a full time educator. At the time, it was painful to see such a large amount going to my retirement, but now, living from that same pension, I am very grateful.
My friend did not have to give up his US license to get his UK license. Maybe it’s a Commonwealth thing?
Hmm I don't know! It was just part of the process: you send them your current license with the application, they keep it lol.
I lived in Japan for two years, and wasn’t required to lodge an Australian tax return for those years. (This was 20 years ago, so the rules may be different now.) And as a temporary resident of Japan, I didn’t need to lodge a tax return. So that was luckily all very easy!
I’m curious about the drivers licence ‘swap’ when you got your UK licence - if/when you go to Canada for a trip, does that mean you won’t be able to have your Canadian license with you, and therefore can’t drive while you’re there? How annoying, if so 🙃
I have a friend who spent most of her work life in Australia and has returned home to Scotland and has spoken about the pitfalls of navigating the two systems. She says it is with it!
I moved from Ontario to Quebec - but kept my company in Ontario - so there are fancy things I allow accountants to deal with (I am a corporation and not just self-employed). I will never get CPP as I have not paid into it enough. My husband has always worked on the Quebec side (even when we lived in Ottawa) so nothing really changed for him.
I think all of this is such an example of the personal in personal finance!