Non-resident tax obligations

peoriasxyz · Post by **peoriasxyz** » Tue Jan 15, 2013 5:37 pm

Hi, My husband and I are Canadian Citizens. We are in the process of moving to Mexico. As per the typical process, currently working on "severing ties" in Canada (property; bank accounts; cars; etc.) to establish ourselves as non-residents for tax purposes.

We wish to understand (and properly fulfill !) our Canadian tax obligations as non-residents.

As such, we have a question that we hope someone can help with: after we establish residency in Mexico, if we have any investment income in Mexico (say capital gains from real estate or mutual funds or stocks/bonds transactions, etc.) do we have to pay tax in Canada on those capital gains?

Would appreciate your thoughts!

Sincerely,

Lauren P.

JGCA · Post by **JGCA** » Tue Jan 15, 2013 10:37 pm

Upon leaving Canada you will file departure returns showing your final tax obligations to Canada on the departure. Subsequently on your arrival in Mexico and investment income earned in Mexico on interest , capital gains from Mexico is no longer reported to Canada since you have left Canada. Only if you are still resident in Canada do you continue to report to Canada your worldwide income not after you leave and are no longer a resident of Canada.

nelsona · Post by **nelsona** » Wed Jan 16, 2013 9:57 am

The Emigrant Guide from CRA expalins that you will pay deperature tax on youyr investemtns, and thereafter, otherr than Cdn real estate, you will pay nothing in canad on investments.

Any other income you get from canad will be taxed by canada (pensions, RRSPs, etc).

peoriasxyz · Post by **peoriasxyz** » Wed Jan 16, 2013 9:45 pm

I appreciate all the replies shown above. Thank you.

Lauren P.