REACH OVER 380,000 SUBSCRIBERS EVERY MONTH!

  LIST YOUR PROPERTY WITH US: on one of the  top Caribbean Property Sites. Get your property SEEN!

  ADVERTISE ON THE FRONT PAGE OF YOUR COUNTRY! Reach your target market - people looking for property, information and opportunities in YOUR country.

  PLACE YOUR BANNER ADD ON OUR SITE FOR HUGE TRAFFIC VOLUME! Click here to find out how we can help you sell your property, business, opportunity, ebook or idea.

NEED EXPOSURE FOR YOUR DEVELOPMENT? Advertise your project, your resort, your spa, your condos, your timeshare... whatever you are promoting - in Caribpro.

  SUBSCRIBE FREE! Click here and subscribe to Caribbean Property ezine monthly - FREE! We value your privacy (Unsubscribe anytime)

   DOWNLOAD LATEST EDITION AS A PDF : Click here to download the latest Edition of Caribbean Property Magazine in PDF format, June May 2010. Most computers will open PDF documents automatically, but you may need to download Adobe Reader. Download the reader here.

  CONTACT US/FEEDBACK Want to contact us? Make a comment? Want more info? Different info? We want you to be satisfied, so tell us what you think...

A comprehensive list of downloadable ebooks available from Caribpro. Titles include:

Retire In Mexico: Live Better For Less. Live in Mexico and join the many other retires who have done their homework, which resulted in mexico where you can live better for less.

Escape The Corporation:  How to live the life you have always dreamed of - free from the corporate slog.

Living & Investing: In Panama Find your dream in panama by enjoying an affordable and comfortable setting.

   The Portable Professional:
Using technology, log in from anywhere and earn a living. please yourself and make money doing it.

How to Remove One's Self Legally From the Canadian Tax System - Escaping Canada To Bermuda
by Robert Hof

November 2004

I'm not a lawyer! But, one of my coworkers talked to a tax lawyer before he too left Canada, and it was recommended that expats DO NOT submit the NR73 form. The lawyer explained that if you give CCRA the opportunity to deny your non-resident status, they are much more likely to do so than if you simply leave, declare that you have left Canada on your last tax return, and file no further returns. You are not legally required to fill out the NR73, so I will leave it up to you. The increased scrutiny of the tax department of any country is not something many of us would want.

Interpretation Bulletin IT-221
http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.pdf
This is the Canadian expat's tax bible. In this 8 page document is everything you need to legally escape the Canadian tax system. My favourite line is in Paragraph 2: "The term "resident" is not defined in the Income Tax Act." So, it's all a matter of interpretation! However, there are several major and minor factors that CCRA will take into account when determining residency status:

The Ties that Bind: Major Residential Ties
1. A House
2. A Spouse
3. Children

The House
You don't have to sell your house, but it makes things easier. If you can rent out the house for enough to cover mortgage and taxes then it's certainly worth keeping. You will likely owe capital gains taxes when you sell the house, as you're showing CCRA that you're non-resident. This one was a shocker to me.

If you keep the house, make sure you lease it out to a third party at the going market rate, or better yet, hire a property management company to keep it rented out. If you can terminate the lease without significant notice to the lessor, this could be contested by CCRA.

The Spouse And The Kids
Very simple - bring them with you! IT-221 says that CCRA will deem you to have acquired non-resident status on the latest of:

- the date you left Canada
- the date your dependents left Canada
- the date you acquire new residency

So if possible, bring your entire family with you to your new country. Sending back money to Canada to support a family is most certainly a "Significant Tie".

The Minor Ties

There are ten Minor Ties as defined by CCRA for determining your ties to the System. Taken individually, they won't be a problem, but they can add up to residency if you're not careful:

1. Personal Property 2. Social Ties 3. Economic Ties 4. Landed Immigrant Status or Work Permits 5. Hospitalization and Medical Insurance

6. Drivers License 7. A vehicle 8. a seasonal residence (cottage) 9. a Canadian Passport 10. Union or Professional memberships

Personal Property

When you're leaving, have a garage sale! Sell everything you won't be taking with you, or give it away. Don't put things in a storage locker. Remember - you aren't coming back.

Social Ties
Out with the Golf Clubs memberships, and change that lodge affiliation to the local chapter.

Economic Ties
This is a wide category. Obviously you can't keep your Canadian job, but CCRA also frowns upon keeping Canadian bank accounts and credit cards. Even keeping an RRSP puts a little tick mark beside your name.

But why would you want to keep your money in Canada? Apart from the increasing value of the Loonie compared to the greenback, there isn't much reason to keep cash in Canada. You get a T5 if you get significant interest income which you have to claim, and the advantage of tax-free growth inside your RRSP is effectively the same as keeping your investments in a low- or no-tax jurisdiction. You will take a significant hit withdrawing your RRSP funds, but you would pay tax on withdrawals inside Canada anyway. Talking to a tax accountant is mandatory if you have all but the smallest RRSP.

As regards the declining value of the US dollar, remember, there are other strong currencies out there. Mutual funds are available that are denominated in the Euro and in Pounds. Once you leave Canada, your options are wide open.

View down Robert's street	Beach near Robert's house

. .
Landed Immigrant Status Or Canadian Work Permits
Not an issue for Canadians by birth, but could be an issue for others. I'm afraid I know little about this.

Hospitalization And Medial Insurance
Every province in Canada has it's own medical insurance system, and being originally from Ontario, I know OHIP. It's important to know that once you leave Canada and lose OHIP coverage, there is a 6 month waiting period should you return to Canada. This may be a significant issue for those with health issues.

Drivers License
I have mixed feelings on this one. I chose to keep my Ontario Drivers License, because the Bermuda driver's license is not a particularly advanced (and therefore secure) identity card. While visiting family last summer, I tried to use the Bermuda license as id for getting into the local casino. When the laughter died down, I was politely asked if I had any other ID. Luckily, I still had my Ontario Driver's license.

If you move to a country with stronger ID, this may not be an issue for you.

A Car Or Truck
You're leaving, so why would you keep your car? Unless it's a true collector's item, sell it. Even if you do decide to move back to Canada, the car will be several years older by then. Sell your car.

A Cottage
Cottages can have more sentimental value than even your home. One of my closest friends back in Canada has a cottage that was passed down for several generations. I can understand why you wouldn't want to part with a cottage. If this is your only minor tie to Canada, you should be fine. But to be safe, consider renting it out.

A Canadian Passport
I grumble about this one being on the list - I don't plan on ever giving up my Canadian passport. No offence to Americans, but I believe Canadians get a warmer welcome in most places around the world than just about any other country. And in my case, I have a work permit here in Bermuda, upon which my residency depends. I will cover this in a future article, but getting Bermudian citizenship and therefore a Bermudian passport is all but impossible. So I'm keeping my passport.]

Union Or Professional Memberships
Another tricky one. Many people will have pensions tied to memberships in Unions or professional organizations. Again, this is a minor tie, so if you have to keep it for a good reason, you will not likely run into any problems.

There are also a few extras which CCRA throws into the IT221, such as maintaining a mailing address, a phone directory listing, even having Canadian magazine subscriptions. Obviously, the government needs to feed itself, and so CCRA will do its absolute best to keep you resident in Canada. The bulletin also specifies things that CCRA expects to see if you return - such as establishing residential ties in your new home. For that reason, keep copies of bills, and assuming you're renting, a copy of your lease. If you ever decide to return, having these documents will help to prove your residency in another country.

Escaping from Canada's tax system can be quite painless as long as you follow the points outlined in this article. If you are able to follow the golden rule: Sell everything, close all accounts, and act as if you're never coming back, you should have no problems. Talking to a tax accountant and/or lawyer is always recommended, as everybody's situation is a little different.

View out the back of Robert's house	Christmas 2003

The opportunities for living and working outside Canada are practically endless. If you're able to broaden your horizons by moving, by all means do so!

In my next articles I will be discussing expatriot life in Bermuda. This crazy little country has more than a few stories to tell, and there are excellent job opportunities for people in the insurance and IT fields. If there are any topics you would like to see covered, by all means email me at expatlife@101.net.

In the meantime, please visit the Association of Canadians in Bermuda website at http://www.canadians.bm/

Escape The Corporation? - Find yourself in a total rut? You're not the only one who has found that they were not living the kind of life they want to live. Is it possible to escape? YES!

CLICK HERE

Do you want to restructure your life in such a way that you can do the things you want to do and to live the life you want to live?

YES! Well, others have done it, and Frank Welzig is one of those who escaped the coroprate world and learned to live his life they way he wanted to live it. With a Degree in Mathematics and Computer Science he had worked as a software engineer for IBM and also in aerospace. One day he just stood up and said, "I'd rather be dead than to continue working at something I don't want to do"

Frank is the author of this eye opening report. Read what may be the most important report of your life. This may well be the final push you need to live the life you have always wanted. Join thousands of others who have seen their lives drastically improved just by taking the time to ask themselves a few questions...

Escape The Corporation - What Every Corporate Employee Needs to Know...

CLICK HERE

"How To Buy Costa Rica Real Estate Without Losing Your Camisa" was written by Scott Oliver with the help of dozens of Costa Rica real estate experts and attorneys.

What This Costa Rica Real Estate Book Will Do For You
This is not a book about living in Costa Rica; it is a 140 page comprehensive English-language guide to buying Costa Rica real estate.

When you search for suitable Costa Rica real estate, whether it is to live in or purely as an investment, you need to be informed about the challenges of Costa Rica real estate:

Buying real estate in Costa Rica or anywhere in Central America, without doing your homework or, working with the wrong people - could turn out to be a very expensive "learning experience."

The goal in writing this unique book is to help educate and protect you; to provide you with objective, non-commercial information from proven experts so that when you buy Costa Rica real estate, it’s not just a wonderful home but also a very profitable investment.

CLICK HERE

WE'LL PAY YOU FOR YOUR REPORT!

If you have a concept or know of a subject that you believe fulfills our description of what we are seeking; contact us at once. We'll buy your article.

CLICK HERE