Dear Mr. Ingram,
In one of your previous replies to other inquiries, you mentioned it is difficult to immigrate to Canada as an employee after the age of 55. What about immigrating as an investor? I read somewhere that you could deposit a certain amount of money with the Canadian government, in exchange for immigrant status, and you can get the money back after 5 years, with no interests earned. Is there an age limit for this type of immigrants? How involved a process will it be?
My second question is: if we were to immigrate to Canada, we would be getting U.S. income in the form of pensions (from employer, not social security). Is this taxable in Canada?
Thank you very much for your help.
david ingram replies:
Assuming your health is good, you can come as an immigrant investor. You need to deposit $400,000
Canadian for 5 years. In addition, you need to show another $400,000 Canadian in asserts and have to be able to prove that he entire $800,00 was obtained legally. It is also possible to do it by our arranging an HSBC loan for you of the required money. This costs you about $135,000 in fees which are "not" refunded. However, in this example, you have the use of your $400,000 - the $135,000 and that could be worth more to you.
We can help you with all of that. At the moment, you should expect about an 18 month wait time although it may speed up with Buffalo's becoming an American only immigration office.
Your employee pensions would be taxed in the US first and Canada second. The effective rate of tax for you in the US is 15% and Canada would tax you at a maximum of about 44%. (about 23% on first $30,000, about 33% on next $30,000 and about 43% after that depending upon what province or territory you picked to live in.
Because you had already paid 15% tot he US, Canada would deduct that amount from the tax payable to Canada by filling out a Foreign tax credit.
Go to www.centa.com and click on US / Canada taxation for some other examples of US Canada taxation situations.
CEN-TA Cross Border Services - Tax, Visas, Immigration