By Linda Priestley
Do you plan to live abroad (or at least make extended stays there) during your retirement? Before settling in another country, you have to be well prepared—a few tips.
Do you want to take off as soon as it’s time to retire? Before settling in another country, you have to be well prepared for peaceful days. Here’s how.
- Choose the country that best suits our needs
To avoid unpleasant surprises, it is better to conduct in-depth research before making our choice. Starting with the following points:
the climate (the Internet allows us to study statistics for each targeted location and find out what the weather conditions are in each season);
the cost of living (including taxes and duties);
accommodation options;
the cultural aspect (including language barriers);
ease of access for relatives and friends who come to see us;
owning pets.
Besides Florida and Arizona, the favourite haunts of many retirees, there are other places of interest. The specialists of the American magazine International Living publish each year a list of the most affordable countries which offer advantages to seniors, such as reductions in transport or on electricity bills, low property taxes or exemption from certain taxes. . In 2013, Ecuador, Mexico, Costa Rica and Spain are among the destinations of choice.
- Check what the regulations are for staying abroad
Whether it is a temporary installation (more or less extended stays each year) or permanent (do you then want to apply for a permanent resident or citizen status or opt for dual citizenship?), it should be remembered that all these possibilities have their particular legal and tax implications. It is best to call on a tax specialist or a lawyer to see clearly and decide what suits our needs. Good to know: Canada has signed tax treaties with many countries, which can avoid double taxation and reduce taxes (visit the website of the Canada Revenue Agency for more information ). - Be reassured about our pensions
Even as a non-resident of Canada, you can receive benefits from the Canada Pension Plan (CPP), the Quebec Pension Plan (QPP) and Old Age Security (OAS), provided you meet the eligibility criteria. Note that there is a 25% withholding tax on this income and income from rental income or pensions from private plans such as group RRSPs and supplemental pension plans. For more information, visit the Canada Benefits site.
Very useful: CPP and OAS Frequently Asked Questions for pensioners residing abroad allows you to learn more about automatic payment or the advantages of receiving payments in the local currency.
