Moving
Back to Canada: FAQ's
Questions and answers will be steadily added as you ask them!
Frequently Asked Questions - FAQ's:
1. What do I have to do to "become" a resident of Canada again?
2. When I return to Canada do I have to pay taxes on the money I earned while living overseas?
3. Which provinces have a 3 month waiting period before I can get public health insurance?
4. Can I bring my car (vehicle, trailer, RV, etc.) back to Canada?
5. How do I renew my Canadian Driver's License while I am living abroad?
6. Can my foreign husband/wife/spouse come to Canada with me when I return, to live and work there?
7. How much money will the government deduct from my pay in Canada? ("Canada is a high tax country")
1. What do I have to do "become" a resident of Canada again?
Answer:
In some countries you have to go to the government and declare your residency when you either arrive, or shortly after. This assumes a central government control mind frame and procedures. Such is not the case in Canada: You will not have police knocking on your door if you do "register" your residency with the government, for example.
There are three parts to answering this question for becoming a "legal" resident of Canada after living abroad:
- In order to bring your personal belongings back to Canada without
duty or customs fees you have to verbally declare that you are a Canadian
returning to take up residency in Canada when you cross the border,
either by land, sea, or through an airport. Your belongings and possessions,
called "house hold goods" or "HHG" in movers terminology,
must be detailed clearly and fully in a list you make up beforehand.
Details of exactly what is required can be found on the Canadian Federal
Government's CBSA
web site.
- In order to access services such as health care and libraries you
will have likely have to show some proof that you are now living in
Canada. This can be an apartment rental lease, a utilities bill with
your name and address, etc.
- Finally, on the first tax return you file, you will have to declare the date you resumed residency in Canada, so your taxes can be calculated from that point forward.
That's about it. Your residency is formally "declared" upon crossing the border. You "become" a resident immediately upon arrival. Access to services and tax implications and through your first tax return filing.
More information on the arrival stage, and specific tax implications of moving your money home.
2. When I return to Canada do I have to pay taxes on the money I earned while living overseas?
Answer:
Generally speaking, the answer is "no". If you have lived overseas for several years, had few ties to Canada while you were away, and established a clear residency elsewhere, you will be considered to have been a non-resident.
Exceptions happen, however: If you were gone only a short time - typically less than 2 years, had significant ties to Canada such as property you intended to return to, a licensed vehicle, you used a Canadian credit card while away, etc., you may be "deemed" by the Canadian Government to have maintained your Canadian residency and will therefore be liable for Canadian taxes on your earnings. If you work for the Government of Canada while overseas is another exception: You are considered a Canadian resident still, unless you have some sort of special contract that stipulates otherwise.
Countries that have a tax treaty with Canada (like the U.S.) ensure that double-taxation does not occur. If you paid tax in USA while living there, you won't be taxed on your American earnings when you return to Canada.
In summary, the dividing line on the tax issue is pretty straight-forward for most folks: Live several years elsewhere with a clear separation from your Canadian life and you don't pay taxes. Be gone a short time and maintain ties to Canada: Pay taxes.
For more information on the tax question visit the Government of Canada's web site:
Individuals - International and Non-resident Taxes
3. Which provinces have a 3 month waiting period before I can get public health insurance?
Answer:
The provinces of British Columbia, Ontario, Quebec, and New Brunswick have a 3 month waiting period before you can get public health insurance. In all other provinces you can become insured immediately.
For the 3 month waiting period you can buy private health insurance. It is available through many major Canadian insurance companies.
4 Can I bring my car (vehicle, trailer, RV, etc.) back to Canada?
Answer:
Bringing a car, other motorized vehicle (an RV for example), or a non-motorized trailer back to Canada can be pretty straight-forward, complicated, or impossible. I strongly suggest that anyone considering "importing" their vehicle when they are planning to move back to Canada research their particular situation carefully.
The relevant Canadian government web site:
http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html
Why this FAQ?
A message I received January 2012 regarding one person's challenge of importing their vehicle from the U.S. into Canada.:
"you don't have anything on here about bringing your american car over the border for use in canada. going thru hell right now, and have had a us car rental since the 1st wk in january; currently the 29th of january. have had to go over the rainbow bridge 3 times as of tomorrow it'll be 4 times to check on my car in a ford dealership, thank god for those guys, installed my day time running lights. so as such the resources would be good here, its a long drive from niagara falls to oklahoma city if I cant get the car over to canada."
5. How can I renew my Canadian Driver's License while living abroad?
Answer:
Every province has their own driver's license process, and all are a bit different. Below are British Columbia and Ontario processes, as examples. For other provinces, just Google: "[Province] Driver's License renewal" to find the appropriate provincial web site that explains that province's process. For all provinces, see the "IMPORTANT:" note below.
For Canadians with a BC Driver's License:
You must renew your BC Driver's License only while physically present in BC so that you do it in-person. ICBC, which handles licensing of drivers in the province, has a simple web site that explains your options:
http://www.icbc.com/driver-licensing/renew-replace/renewing-licence#licence_is_about_to_expire
In summary, they are pretty easy going - you can renew 6 months in advance or up to 3 years after it has expired. Note, however, that you cannot drive in Canada after it expires. If you go over 3 years, you will have to apply as a new applicant, with a written test, road test, etc. YUCK!
For Canadians with an ON Driver's License:
You must renew your ON Driver's License in-person unless your renewal form says you don't need a photo taken. Like BC, Ontario gives you 180 days ahead of time to renew, so that you have plenty of time to get it done. However, they seem stickier than BC on expired driver's licenses:
"You can renew an expired driver's licence, without taking tests, within one year of the licence expiry date." Note: This applies to regular licenses, not learner permits, temporary, suspended licenses, etc. After one year but less than 3 years, you will have to take a vision test, too. After 3 years Ontario is like BC: You have to start the licensing process from the beginning (TESTS!)
In summary, like BC, you have some leeway both before and after your regular driver's license expires in Ontario. Here is the Ontario web page that explains all the options and details:
http://www.mto.gov.on.ca/english/dandv/driver/renewal.shtml
IMPORTANT:
Renewing a Canadian driver's license has implications for your residency status! If you are living outside of Canada and renew your Canadian driver's license while still outside of Canada, carefully weigh renewing against all your other ties to Canada. A driver's license renewal by itself is probably a very small tie to Canada. Renewing plus having other ties to Canada might constitute a case for the government claiming that you are actually still a resident of Canada, with resulting tax implications.
6. Can my foreign husband/wife/spouse come to Canada with me when I return, to live and work there?
Answer:
Yes!
However, they must become a legal Permanent Resident to be able to stay, live, and work.
The process of "sponsoring" them is pretty clear and well-established. Here is the relevant Government of Canada link that explains everything:
http://www.cic.gc.ca/english/information/applications/spouse.asp
Note: To be clear, your husband/wife/spouse will not immediately get Canadian citizenship - this is about getting them Permanent Resident status: the legal right to live and work in Canada. Application for Canadian citizenship is a related but different (and longer) process.
An American comparable process is the "Green Card" versus "American Citizen".
For more information on what a Permanent Resident is in Canada:
http://www.cic.gc.ca/english/newcomers/about-pr.asp
7. How much money will the government deduct from my pay in Canada? ("Canada is a high tax country")
Answer:
Urban myth or truth? Is Canada a high tax country that leaves you much poorer every month than in the U.S., for example?
Simple answer: Canada is not a high tax country. You can live a great life here financially.
Longer answer:
There are a lot of factors that complicate this answer and lead to "apples versus oranges" comparisons that really don't make sense.
For example, is the government payroll deduction rate lower in the U.S. than in Canada? Yes.
Does this mean you automatically have tons more cash in your pocket every month in the U.S. than in Canada? Absolutely not.
If you compare overall costs of living over a 10 year period, for a middle class family of 4, between Canada and the U.S., you will likely find little difference if you factor in housing price impacts, medical costs, and other factors.
Take home pay calculator for Canada:
A lot of people believe a myth that Canada is like Sweden - 80% of your pay goes to the government in taxes (not true, but yes, they do pay higher taxes in Sweden). The belief that Canada is a high tax country is simply not true.
Check for yourself: The Canada Revenue Agency, of the Federal Government, provides an online payroll deductions calculator for you to play with and see what your "take home pay" looks like at various salary levels.
Hint: Use a bi-weekly pay period and minimal claim levels in your calculation. And when you put in your salary, be sure it is your gross salary for 2 weeks pay, not your pay for a month or annually (assuming you chose a bi-weekly pay period).
Final note:
Canada is truly an "apple" and the U.S., for example, an "orange". A much better comparison to use than financial pay comparisons is "quality of life".
According to various "most livable cities" indices, Vancouver, Toronto and even Calgary make the top 10...in the world.
Where do U.S. cities rank? Not even in the top 10! Mercer's 2011 ranking put San Francisco, the first American city to appear on the list, as #30 in the world.
Hmmm....now which country do you want to live in?
Any information may be copied from this page for your personal use. Commercial use: © 2003-2012 Paul Kurucz. Moving Back To Canada by Paul Kurucz is licensed under a Creative Commons Attribution 3.0 Unported License.
