Thread: Question for Canadians Living in Panama

Hi fellow Canucks!

Quick question regarding Canadian tax:

Are you considered "non-resident" for CRA (Canadian revenue agency) ?

If so, I'm assuming you don't have ties in Canada (no dependants in Canada, no house, bank accounts, provincial health care, driver's licence...etc)

Since Panana is a "non treaty" country, I read we have to cut almost all ties....

So I was wondering, if you were able to keep some and if so, which one ?

Thanks a lot

You need to make the decision if you want to become a non-resident or not. If you do you can keep some ties, best to look at the CRA information or consult with a tax lawyer. You want to get it right so that you have no liabilities. There are lots of Cdn's in Panama who have done it both ways, it depends on your situation what is best.

gary

Hi Oggy
I know from my experience living and owning a business in Mexico for 3 years that the critical factor was a residence. On advice of our accountant we sold our house before we left but kept bank accounts intact. Apparently, Revenue Canada will believe the non-resident claim if you don't own a residence. I don't know if alot has changed in the last 4 years but as we lived outside Canada for at least "6 months plus 1 day" and didn't own a home in Canada, we owed no taxes on our Mexico income. I don't think this would affect pension income either but an accountant should be able to clear it up for you.

The biggest factors are:

1. Do you own a residence?

2. THE BIGGEST: NEVER use the Canadian health system as a resident (some people have tried this and paid dearly).

Other things that matter: how much time do you spend in Canada (6 months is the legal limit -- but they will ask more questions if you are closer to the limit. Even when I go for vacation as a non-resident: the first question they ask is "How long are you staying?" as if I'm a foreigner. So they seem to monitor that.

Minor variables: credit cards, bank accounts, mailboxes.

I became a non-resident 5 years ago and never looked back.

Rock on Groggy!
Matt

Hi All:

Useful info here for Canucks thinking of getting out of the Great White North : Leaving Canada (emigrants)
Have a look at the questionaire they use to determine your tax status.