briank Posted August 25, 2010 Report Share Posted August 25, 2010 Hello, I am new to the forum and I have been trying to figure out, tax wise, if it would be better to have "non-resident" status. Would any of you have experience in this? Thanks Quote Link to comment Share on other sites More sharing options...
costaricafinca Posted August 25, 2010 Report Share Posted August 25, 2010 Yes, it may be to your advantage to have non-resident status, but there probably will be a witholding tax of approx. 30%, depending on your income and what property you still have in Canada. Quote Link to comment Share on other sites More sharing options...
briank Posted August 25, 2010 Author Report Share Posted August 25, 2010 Yes, it may be to your advantage to have non-resident status, but there probably will be a witholding tax of approx. 30%, depending on your income and what property you still have in Canada. My intention would be liquidate everything in Canada and leave the country. My understanding by doing so and possibly only having a PO box left is that I can collapse the RRSP pay 15% Does this sound right? It's very difficult to get definitive answers to this stuff. Thanks Quote Link to comment Share on other sites More sharing options...
costaricafinca Posted August 25, 2010 Report Share Posted August 25, 2010 Since we did this quite a few years ago, things have changed so will let 'newer' newcomers reply to this part. Here is previous posting, that may answer some your of your concerns. Please visit Costa Rica first, before making this major decision and read the info at The Real Costa Rica Quote Link to comment Share on other sites More sharing options...
CdnMorganGal Posted August 31, 2010 Report Share Posted August 31, 2010 My intention would be liquidate everything in Canada and leave the country. My understanding by doing so and possibly only having a PO box left is that I can collapse the RRSP pay 15% Does this sound right? It's very difficult to get definitive answers to this stuff. Thanks The 15% isn't right - the institution will withhold a percentage based on the amount withdrawn. The %ages are laddered - the more you withdraw, the higher the tax rate. If you withdraw more than 15k, 30% is withheld. And remember, the collapsed RRSP amounts are considered part of your income for that year - depending on amounts of other income you have, you could end up paying an even higher tax rate. I'm looking into eventually only withdrawing 10-20k/year and paying minimal, if any taxes. Quote Link to comment Share on other sites More sharing options...
briank Posted August 31, 2010 Author Report Share Posted August 31, 2010 The 15% isn't right - the institution will withhold a percentage based on the amount withdrawn. The %ages are laddered - the more you withdraw, the higher the tax rate. If you withdraw more than 15k, 30% is withheld. And remember, the collapsed RRSP amounts are considered part of your income for that year - depending on amounts of other income you have, you could end up paying an even higher tax rate. I'm looking into eventually only withdrawing 10-20k/year and paying minimal, if any taxes. I think individual cases are different I am waiting for some info from my brokers "specialty" guys in Toronto and if I get anything interesting I'll pass it along. Thanks for taking the time to reply Bye for now Quote Link to comment Share on other sites More sharing options...
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