There is a Tax treaty between Canada and the US. The main purpose is not to tax it twice. However, there are withholding taxes (15 -25%)on all these incomes, including CPP, OAS, GIS, RRSP, etc. income. A TFSA is similar to a Roth individual retirement account in the United States, although a TFSA has no withdrawal restrictions, such as the unqualified withdrawal penalty of the Roth IRA.
I can touch on The canadian rules for Thailand but would not have any idea bout their tax rates :) For that youd have to consult an Thailand Canada cross border tax expert. But I can go over what happens Joe
Hi Steve, I'm retired in Thailand as a non resident. Look up NR5 and 217 forms. I think there's an income threshold for not taking the 25% withholding tax. I collect 36k per year and they don't take any taxes since I filed for NR5 7 years ago. Check it out!
Great video. I subscribed to this channel. But, first things first. I've been trying to figure out how I can move to the US as a retiree. There's no special visa, and considering that I am actually retired, I don't want to open business over there in order to get a visa. I spoke a number of times with American immigration lawyers, and they were unable to help.
Hey Robert, yeah I think you would need a special visa which you would have to apply for and that usually means a substantial investment ( or the O visa could be if you became a UA-camr LOL) Welcome to the channel and thanks for the comment! Joe
Hey Chris! Unfortunately no. Canada will withhold 15% on CPP and OAS and 25% on death benefits for Greece, however ACC to the CRA website you are exempt from the first 15000 of income (or its equivalent in euro currency) of your total pensions from Canada In order to get this exemption you will have to file the NR5 form. Thanks for the great question and welcome to the channel. I appreciate the support. Joe
Hi Perfect! I am only registered in Canada and US and not in Panama. But the only 3 countries I have seen with no withholding taxes on the CRA website was US, UK, and Brazil. That’s said I am only cross border with the US so any answer I give on this you should confirm with a cross border expert with Panama familiar with their tax laws and Canadian ones. I could be wrong but I do not believe Panama has the same arrangement. Please confirm that though as I am speculating and you should not take my answer as an expert answer in this area. I know it’s not what you wanted to hear but thanks for the question and welcome to the channel! Joe
We have retired to Mexico full time. We have NR5 and then Section 217 so we are taxed at 9% and 2% on our retirement income. Is it possible to pay no tax on CPP & OAS if retired and residing in Mexico? We we be very interested to know.
Hi Sharon, I am not totally sure about Mexico but I could do some research on it. I am also cross border advisor with Canada and the US, as I am registered in both of those countries, and not registered in Mexico. Being taxed at 9% and 2% is a great tax rate and thanks for sharing the information. I do not know for sure if Mexico would be the same as I do not think Mexico has the same types of social security programs the US has. I could be wrong and I am guessing here but I don’t think so. I would be finding a cross border tax expert that deals with Canadian expats in Mexico and see if there is a specific tax treaty that might help reduce or eliminate tax. I know this probably doesn’t answer your question but I want to be careful on what I am qualified to answer and what I am not ;) Thanks so much for the question welcome to the channel and I will learn a bit more about it. Joe
@@petewick8627 we decided to apply to be ‘non-residents’ of Canada for tax purposes. Mexico & Canada have a tax treaty and the taxation rate on retirement income is 15%. It is a good rate if you have a moderate or high income from your retirement income sources. If you take out very little of your income or have a lower annual retirement income you can file a section 217 Form apply for further reduction in taxation rate. If you go with existing tax treaty rate of 15% you never have to file annual tax returns. However, if you opt for reduced taxation rate through a Section 217 and get approved, you are required to file income tax returns annually. The reduction rate is valid for 5 years and you re-apply. This information is available on CRA website under non-residents.
Hey Nellie! Thanks for the question and welcome to the channel. Unfortunately it would not apply for a pension that was private. Private pensions would not convert to social security- it would only be Government pensions and OAS. I hope this helps and thanks for the support! Joe
I believe your wrong. Just becoming a PR in the US or any other country does not releive you of Canadian tax libilities of Canadian source income and capital assets or even foreign based income. You have to formerly cash out of Canada tax wise first i.e. pay all taxes owning on anything (RE, stocks) as if they were sold at market and prove you have a permenate foreign residence to be free of all future filing requirements and taxes. The non witholding issue is just a convience granted because they recognize by being a PR you now have US tax libilities that will use up that withholding. You may think at least you wont have to pay the provincial portion, but the tax hungry feds in Canada will keep the provincial portion for themselves. You get to formerly use taxes paid in the US as a Canadian tax credit but it seldoms is a 100% credit and as taxes are higher in Canada and combine the provincial portion you'll just about always be paying something to Canada if you're not living near poverty and didn't cash out your Canadian assets.
Hi Truth! With this video I do not think I am wrong but it makes a HUGE assumption that you have no other Canadian assets or income only CPP and OAS and under perfect conditions in theory you can get your CPP and OAS tax free. If I am mistaken I will be the first to admit it and make a correction, and am definitely going to be somewhat wrong at some point in the future about some topic :). I genuinely appreciate your challenging the video content, it makes me better as a creative person. It also assumes you have cut ties with Canada and only CPP and OAS remain. That said I love the feedback and highly respect the opinion. it’s comments like these that force me to learn and even greater amount from my community so thank you for that. I believe you are correct in the first part where just becoming a permanent residence of the US would not absolve you. You have to cut ties with Canada so you are correct. On the non witholding you would see there are very few countries the USA being one of them that they do not withhold. Most countries it’s 15 or 25%. I very much appreciate the comment and welcome to the channel! Joe
@@JoeMacek The US doesn't tsx their CPP/OAS Equivalent Spcial Security income up to about 30/ 35K. As it is an government equivalent they probably won't tax CPP/OAS as in most cases with FX considerations it will be below the theashold, unless other income create a tax liability in the US.
@@JoeMacek if this is true, then you have to choose a developing nation to afford health care. OAS+CPP in the USA is squat- $25k canadian puts you on the street.
Hi Dragi! Thanks for the great question and welcome to the channel ! I do not believe Serbia would be one of the countries that you could get tax-free income, as there are only a handful of countries Brazil, the United States, and the United Kingdom has a special tax with that Canada does not withhold taxes. I haven’t checked the list specifically for Serbia to see if they have a tax treaty but worst case scenario you would be paying 25% withholding tax if you moved back to Serbia and cut ties with Canada. Of course, I am not an expert when it comes to Serbia and Canadian cross border issues. My focus is on Canadian retirement planning US retirement planning and cross border services between those two countries so please it would be best if you triple checked this information with someone that is cross border with Serbia and Canada . I love the comment and thank you so much for commenting. It helps a lot. Joe
This is important to know, especially because more Canadians are escaping abroad. Please do one for Peru!
Thanks Fayez! Your support is always appreciated!
Hmm...... Quite interesting information. Thanks for sharing. 👍
Thanks for watching and the kind words! Welcome to the channel!
There is a Tax treaty between Canada and the US. The main purpose is not to tax it twice.
However, there are withholding taxes (15 -25%)on all these incomes, including CPP, OAS, GIS, RRSP, etc. income.
A TFSA is similar to a Roth individual retirement account in the United States, although a TFSA has no withdrawal restrictions, such as the unqualified withdrawal penalty of the Roth IRA.
Any chance you might do a similar one for retiring in Thailand?
I can touch on The canadian rules for Thailand but would not have any idea bout their tax rates :)
For that youd have to consult an Thailand Canada cross border tax expert.
But I can go over what happens
Joe
Hi Steve, I'm retired in Thailand as a non resident. Look up NR5 and 217 forms. I think there's an income threshold for not taking the 25% withholding tax. I collect 36k per year and they don't take any taxes since I filed for NR5 7 years ago. Check it out!
can you do one for a Canadian in the philippines?
I can look at doing one yes :) Joe
I’m interested but it’s all online anyway
That would be of importance to me as well!!
You like Phillipines the best?
@kellyinPH
Phillipines is a very promising destination for Retirement or just relocating!
From what I've learned, more positives than negatives!
Great video. I subscribed to this channel. But, first things first. I've been trying to figure out how I can move to the US as a retiree. There's no special visa, and considering that I am actually retired, I don't want to open business over there in order to get a visa. I spoke a number of times with American immigration lawyers, and they were unable to help.
yes I would like to know this also , how do you retire in US
Hey Robert, yeah I think you would need a special visa which you would have to apply for and that usually means a substantial investment ( or the O visa could be if you became a UA-camr LOL) Welcome to the channel and thanks for the comment!
Joe
How about Greece, can you collect CPP & OAS tax free there?
Hey Chris!
Unfortunately no. Canada will withhold 15% on CPP and OAS and 25% on death benefits for Greece, however ACC to the CRA website you are exempt from the first 15000 of income (or its equivalent in euro currency) of your total pensions from Canada
In order to get this exemption you will have to file the NR5 form.
Thanks for the great question and welcome to the channel. I appreciate the support.
Joe
What about Panama?
Hi Perfect!
I am only registered in Canada and US and not in Panama. But the only 3 countries I have seen with no withholding taxes on the CRA website was US, UK, and Brazil.
That’s said I am only cross border with the US so any answer I give on this you should confirm with a cross border expert with Panama familiar with their tax laws and Canadian ones.
I could be wrong but I do not believe Panama has the same arrangement. Please confirm that though as I am speculating and you should not take my answer as an expert answer in this area.
I know it’s not what you wanted to hear but thanks for the question and welcome to the channel!
Joe
We have retired to Mexico full time. We have NR5 and then Section 217 so we are taxed at 9% and 2% on our retirement income. Is it possible to pay no tax on CPP & OAS if retired and residing in Mexico? We we be very interested to know.
We retired to PV a year ago and I was not aware of this. Could you tell me a bit more about NR5 and section 217?
Hi Sharon,
I am not totally sure about Mexico but I could do some research on it.
I am also cross border advisor with Canada and the US, as I am registered in both of those countries, and not registered in Mexico.
Being taxed at 9% and 2% is a great tax rate and thanks for sharing the information. I do not know for sure if Mexico would be the same as I do not think Mexico has the same types of social security programs the US has.
I could be wrong and I am guessing here but I don’t think so.
I would be finding a cross border tax expert that deals with Canadian expats in Mexico and see if there is a specific tax treaty that might help reduce or eliminate tax.
I know this probably doesn’t answer your question but I want to be careful on what I am qualified to answer and what I am not ;)
Thanks so much for the question welcome to the channel and I will learn a bit more about it.
Joe
@@petewick8627 we decided to apply to be ‘non-residents’ of Canada for tax purposes. Mexico & Canada have a tax treaty and the taxation rate on retirement income is 15%. It is a good rate if you have a moderate or high income from your retirement income sources. If you take out very little of your income or have a lower annual retirement income you can file a section 217 Form apply for further reduction in taxation rate. If you go with existing tax treaty rate of 15% you never have to file annual tax returns. However, if you opt for reduced taxation rate through a Section 217 and get approved, you are required to file income tax returns annually. The reduction rate is valid for 5 years and you re-apply. This information is available on CRA website under non-residents.
Does this apply to a private pension as well?
Hey Nellie!
Thanks for the question and welcome to the channel.
Unfortunately it would not apply for a pension that was private.
Private pensions would not convert to social security- it would only be Government pensions and OAS.
I hope this helps and thanks for the support!
Joe
Well that's fair you get no tax living out of canada and I have to pay taxes because I cannot afford to get out.
I believe your wrong. Just becoming a PR in the US or any other country does not releive you of Canadian tax libilities of Canadian source income and capital assets or even foreign based income. You have to formerly cash out of Canada tax wise first i.e. pay all taxes owning on anything (RE, stocks) as if they were sold at market and prove you have a permenate foreign residence to be free of all future filing requirements and taxes. The non witholding issue is just a convience granted because they recognize by being a PR you now have US tax libilities that will use up that withholding. You may think at least you wont have to pay the provincial portion, but the tax hungry feds in Canada will keep the provincial portion for themselves. You get to formerly use taxes paid in the US as a Canadian tax credit but it seldoms is a 100% credit and as taxes are higher in Canada and combine the provincial portion you'll just about always be paying something to Canada if you're not living near poverty and didn't cash out your Canadian assets.
Hi Truth!
With this video I do not think I am wrong but it makes a HUGE assumption that you have no other Canadian assets or income only CPP and OAS and under perfect conditions in theory you can get your CPP and OAS tax free.
If I am mistaken I will be the first to admit it and make a correction, and am definitely going to be somewhat wrong at some point in the future about some topic :). I genuinely appreciate your challenging the video content, it makes me better as a creative person.
It also assumes you have cut ties with Canada and only CPP and OAS remain.
That said I love the feedback and highly respect the opinion. it’s comments like these that force me to learn and even greater amount from my community so thank you for that.
I believe you are correct in the first part where just becoming a permanent residence of the US would not absolve you. You have to cut ties with Canada so you are correct.
On the non witholding you would see there are very few countries the USA being one of them that they do not withhold. Most countries it’s 15 or 25%.
I very much appreciate the comment and welcome to the channel!
Joe
@@JoeMacek The US doesn't tsx their CPP/OAS Equivalent Spcial Security income up to about 30/ 35K. As it is an government equivalent they probably won't tax CPP/OAS as in most cases with FX considerations it will be below the theashold, unless other income create a tax liability in the US.
@@JoeMacek if this is true, then you have to choose a developing nation to afford health care. OAS+CPP in the USA is squat- $25k canadian puts you on the street.
That's all very nice, but i would rather literally die early than move to the US.
Hao about serbija
Hi Dragi!
Thanks for the great question and welcome to the channel !
I do not believe Serbia would be one of the countries that you could get tax-free income, as there are only a handful of countries Brazil, the United States, and the United Kingdom has a special tax with that Canada does not withhold taxes.
I haven’t checked the list specifically for Serbia to see if they have a tax treaty but worst case scenario you would be paying 25% withholding tax if you moved back to Serbia and cut ties with Canada.
Of course, I am not an expert when it comes to Serbia and Canadian cross border issues. My focus is on Canadian retirement planning US retirement planning and cross border services between those two countries so please it would be best if you triple checked this information with someone that is cross border with Serbia and Canada .
I love the comment and thank you so much for commenting. It helps a lot.
Joe