How to Retire to Canada

The average American doesn’t realize just how difficult it is to move to Canada. Yes, Canada may be just to the north and in many ways, it is similar to the United States, but relocating to the country can be difficult.

Canada is not easy for Americans to relocate to after retirement and there are no special pathways for Yanks to follow to an easy life in the Great White North. If you want to retire to Canada, then you should do some planning beforehand. It may take months or years to be legally allowed to relocate to Canada upon retirement. There are a few areas to consider during the planning stage these areas include:

• Visas and residency permit
• Taxes
• The cost of living

Research the Canada visas that are available

You may not even need a residency visa to stay in Canada. All American tourists are granted tourist visas for up to 183 days – that is roughly six months. Tourist visas can be extended with a little bit of paperwork.

As an American tourist, you can open a bank account in Canada and buy a vacation home. If you want to spend time in Canada and at another location during the year, this is a great option. Of course, before going, make sure you are allowed in Canada. The country has strict policies on individuals that are let into the country.

If you have family in Canada already, such as your children, then you can apply for a parent super visa. There is also a grandparent super visa allowing you to live in Canada as long as your grandchildren live in the country.

Canada taxes

Taxes can be a sticky situation for Americans who retire to Canada. You can still receive Social Security benefits while living in Canada. However, you are still subject to American taxes. Retirees who relocate to Canada may still have U.S. taxes to pay on their retirement income. They will also need to pay Canadian taxes on any money earned there.

U.S. retirees in Canada will need to declare their worldwide income to Canada’s Revenue Agency. You won’t be double-taxed, however. The U.S. and Canada tax treaty ensures you can optimize your tax return to get benefits for living north of the border.

Living costs

The cost of goods and services differ across Canada, just like in the U.S. Depending on the area in which you live, your lifestyle will be different. Housing costs in Canada could be lower and all permanent residents benefit from Canada’s socialized healthcare system.

Not everything will be less expensive in Canada. Sales tax could be higher than what retirees are used to. In addition, food items imported from America are more expensive. In addition, Canada has certain automobile regulations for emissions and safety. Your vehicle must be modified to meet Canada’s requirements. Gasoline is more expensive in Canada than in most parts of America.

If you still plan to relocate to Canada after retirement, then it is worth seeking out a financial advisor to talk about your future. Although moving to Canada can be rewarding, if you aren’t aware of the various issues at play, it can turn into a stressful experience.