Great Info and Guide

by Donna
(Canada)

Found your guide quite straight forward and helpful for starting your initial search as well as info for more permanent choices.

Did find that there is not much detailed info in regards to Canadians and the repercussions of living overseas from an accounting and retirement decision or point of view.

In this I mean what happens to access or qualifying for benefits such as old age pensions and GIS and investments if out of country for longer than 6 months, which from what I have heard is far different than for Americans.

I am searching for more info in regards to Canadians making that leap into overseas retirement and what effected their decisions.

Thanks for connecting me with a Canadian here who is looking at Nicaragua. Hopefully we will meet soon.

Overall your guide is well laid out and very informative. I also like that you make yourself available for ongoing help if needed. Thanks again.

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Great Research, Donna!
by: Maggie

Thanks for posting this helpful information about taxes, income and benefits for Canadians, Donna.

Regarding your questions...

Question: Were your prices listed for furnished or unfurnished accommodations?

Answer: Mostly unfurnished. Some may have been furnished.

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Question: Does Nicaragua require you to claim your outside incomes as well while being a resident in their country?

Answer: If you have residency under the Rentista or Pensionado status, you don't need to pay income tax on money earned outside of Nicaragua.

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Rent, Income and Taxes
by: Donna

Were your prices listed for furnished or unfurnished accommodations?

Canadians have to claim worldwide income for taxation purposes as long as they remain Canadian citizens and have income including pensions etc.

Non-residents of Canada are taxed on income received from sources in Canada and may also be subject to taxation in their host country.

I don't think Canada has or is undergoing a tax treaty with Nicaragua. A foreign individual may be eligible to claim exemption from or a reduced rate for withholding on certain types of income. The main purposes of tax treaties are to avoid double taxation and to prevent tax evasion. (Not sure how this all works if there is no tax treaty.)

Does Nicaragua require you to claim your outside incomes as well while being a resident in their country? Or do you end up reporting your income to both and there by paying taxes on both.

This may apply if you are earning income in the country of Nicaragua whereby you may end up not only paying tax on income to Nicaragua as well as including it in you worldwide income to Canada..?

CPP (Canada Pension Plan) and QPP (Quebec Pension Plan) benefits are paid outside Canada, as long as all conditions of eligibility are met.

OAS (Old Age Security) is paid outside Canada if the pensioner lived in Canada for at least 20 years after age 18. The OAS system is intended to guarantee a minimum income to seniors. Eligibility is determined by an income test. To receive OAS benefits outside Canada, you’re generally required to file an annual tax return reporting your worldwide income. For details, see the Canada Benefits website.

As a rule, you cannot receive welfare, disability or other forms of social assistance while living abroad.

Your provincial or territorial health plan will become invalid if you’ve been abroad beyond a certain length of time, typically six months. There could be a re-qualification period before your coverage is reinstated.

Not sure if I am allowed to post this link but know that it also has many other rabbit trails to definitions etc for determining residency status, tax treaty, taxes on pensions sand benefits, ...

http://travel.gc.ca/travelling/publications/living-abroad


http://www.cbc.ca/news/business/taxes/6-must-know-tax-facts-for-canadians-earning-abroad-1.1167892



http://www.esdc.gc.ca/en/cpp/international/before_applying.page


All for now still searching


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Thank you Donna!
by: Maggie

Hi Donna,

Thanks so much for your thorough feedback. You have given me ideas for additional information to include in version 2 of my Nicaragua Guide.

Can I ask you for a favor? If you find reliable resources and information about the specific situation for Canadians when moving abroad, could you share that with me? As you are Canadian, you have a better understanding of its pension and social system than I do.

All the best,
Maggie

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