{"id":587,"date":"2022-07-01T10:00:54","date_gmt":"2022-07-01T10:00:54","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/?p=587"},"modified":"2025-02-19T21:38:19","modified_gmt":"2025-02-19T21:38:19","slug":"at-lastwelcome-back-to-travel-spending-extended-periods-outside-of-canada","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/2022\/07\/01\/at-lastwelcome-back-to-travel-spending-extended-periods-outside-of-canada\/","title":{"rendered":"At Last\u2026Welcome Back to Travel! Spending Extended Periods Outside of Canada?"},"content":{"rendered":"\t\t
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\n\nAfter over two years of lockdowns and shutdowns, the opportunity to travel outside of Canada is a liberating experience that many have eagerly awaited. A significant number of people have organized overseas travel this summer. The many snowbirds who were forced to hibernate in Canada for the winter may now be looking to plan their escape once the cold months return.\n\nAs a reminder, if you spend extended periods outside of Canada, be aware that there may be associated tax consequences \u2014 both in Canada and your chosen destination. Canadian income tax obligations are determined by your residency status, which is determined on a case-by-case basis. This can be affected by such things as the amount of time spent in Canada, the residential ties to Canada (i.e., property owned), the purpose for your time abroad and your ties abroad. Being a Canadian non-resident for tax purposes may still require a Canadian income tax return to be filed and taxes to be paid. A non-resident withholding tax of 25 percent may also be applied to certain income received, such as dividends or pension payments. If you are deemed to be a resident of a foreign country, you may be subject to that country\u2019s tax rules.\n\nHere are other areas that may be affected:\n\nHealth Coverage \u2014<\/strong>\u00a0Although the rules vary by province, provincial medical coverage may become invalid as a result of extended periods spent out of province. Even if health care coverage remains valid, health care services received abroad are usually not covered by provincial health care plans, so having adequate private coverage should be considered.\n\nGovernment Benefits \u2014<\/strong>\u00a0Your government benefits may be affected by your residency status. For example, Old Age Security (OAS) and Canada\/Quebec Pension Plan (CPP\/QPP) benefits may be subject to a non-resident tax of 25 percent (unless reduced\/ exempted by a tax treaty between Canada and the country of residence). The value of OAS payments is impacted by how long you have lived in Canada after the age of 18, so a non-residency status may reduce payment amounts.\n\nTax-Free Savings Account (TFSA) \u2014<\/strong> You will not be able to accumulate TFSA contribution room for any year that you are a non-resident of Canada throughout the entire year. Contributions made as a non-resident will be subject to a penalty tax of one percent per month.\n\n<\/div>\n<\/div>\n
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\n\nEstate Planning \u2014<\/strong> The laws of the jurisdiction of residence at the time of death govern how an estate plan will be taxed. If you are a Canadian resident but have appointed a non-resident trustee\/\nexecutor\/liquidator (the title varies by province) to administer your estate, this may affect your estate, including that it may be considered to be a non-resident estate and may not receive\npreferential tax-treatment (i.e., on Canadian dividends\/capital gains) or it may be subject to the tax laws of the country where the trustee resides. Power of Attorney (POA) documents may also\nbecome complicated by a non-residency status. For example, if you are appointed as POA for property but are no longer a Canadian resident, you may be limited in what you can do, such as potentially not being permitted to give trading instructions on a security account.\n\nThere may be other potential implications should your residency status change due to spending extended periods outside of Canada \u2014 this is not meant to be a comprehensive list. However,\nit is intended to highlight some of the financial implications to consider before making a decision.\n\nWithout a doubt, it is exciting to be able to travel more freely once again. However, if you are spending extended periods outside of Canada, it is recommended to consult legal and tax advisors who are familiar with living abroad to understand how your particular situation may be affected.\n\n<\/div>\n<\/div>\n\n

The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable.\nThe information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual\u2019s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.\n\u00a9\ufe0f 2023, Wellington-Altus Private Wealth Inc. ALL RIGHTS RESERVED. NO USE OR REPRODUCTION WITHOUT PERMISSION<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

After over two years of lockdowns and shutdowns, the opportunity to travel outside of Canada is a liberating experience that many have eagerly awaited. A significant number of people have organized overseas travel this summer. The many snowbirds who were forced to hibernate in Canada for the winter may now be looking to plan their […]<\/p>\n","protected":false},"author":68,"featured_media":3017,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[40],"tags":[18,91,92,93,94],"class_list":["post-587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-estate-planning","tag-government-benefits","tag-tax-free-savings","tag-tfsa","tag-vacation-planning"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/comments?post=587"}],"version-history":[{"count":3,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/587\/revisions"}],"predecessor-version":[{"id":1745,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/587\/revisions\/1745"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/media\/3017"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/media?parent=587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/categories?post=587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/tags?post=587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}