Canada or US

butlertl · Post by **butlertl** » Thu Jan 07, 2010 1:17 pm

I am US Citizen and my wife is Canadian and now a US Citizen. She is going to sponser me for Canadian Citizenship.......

For tax purposes...is it better to remain a US Citizen only and then have a summer home in Canadian? Or, If I become a Canadian Citizen are we subject to the higher tax rate in Canada? We will be retiring in a year or two.

Thanks

nelsona · Post by **nelsona** » Thu Jan 07, 2010 1:48 pm

She can't really sponsor you for Cdn citizenship. She can sponsor you to become a Cdn permanent resident, and then you can become citizen after a qualifying period., a good part of which must be spent in canada.

http://www.cic.gc.ca/EnGLish/citizenshi ... bility.asp

But, hypothetically, if you would ever get Cdn citizenship, and then no longer lived in canada, you would not be taxable in canada on anything but Cdn-source income.

Cdn taxation is based on residence, unlike US, which is based on citizenship or residence.

butlertl · Post by **butlertl** » Thu Jan 07, 2010 1:58 pm

So...maintaining a perminant residence in the US and a summer home in Canada...We would not pay Canadian taxes.

Thanks...this will help with our retirement plans.

We would be taxed on her RSP use though.....

nelsona · Post by **nelsona** » Thu Jan 07, 2010 2:03 pm

You will be taxed in both Canada and US on her RSP and on her summer home, of course.