Two of the Firm’s international tax experts collaborated with Le Devoir on the Vieillir dans le Sud report.
The experts agree that it may be advantageous to spend six months down South after you retire, provided these extended stays outside Quebec are properly planned.
According to Martin Caron, Senior Manager, Tax and International Mobility: “You have to consider your destination, the cost of living, currency and tax system. Each situation must be examined individually, depending on your income and the destination country. You could prepare simulations to see how much you’ll have for the rest of the year, in Canada and the other country.”
Mélissa La Venia, Lawyer and Senior Manager, U.S. and International Tax, says: “Everybody must discuss with their financial institution to determine if they can keep their account and investments.”
If you’re planning to live in another country, there are several factors to consider beforehand: departure tax in Canada, permanent residence vs. tax residence, pension plans and other assets.
La Venia add: “You also have to ascertain if there is a tax treaty with the other county. Each treaty is different. These documents establish the criteria that determine the tax residence of a particular individual.”
Contact our international mobility and tax experts to plan your retirement under the sun.