Canadian/US citizen retirees - can they move to Canada.

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I'm concerned about recent posts by you indicating that Americans
can't retire in Canada.  I am a Canadian citizen with Permanent
Resident Status in the US.  I have been retired for almost 5 years.
My income has been from personal investments during that time, while
my wife continued to work. I will be age 62 this year and will begin
collecting Social Security as well.  My wife, who is a US citizen,
just recently retired, and is receiving a pension from the California
Public Employees Retirement System.  Our combined annual retirement
income is $132,000 US.
We have been considering relocating to Canada to buy a home, and my
wife would apply for permanent Canadian residency. Am I to gather
from the advice you've given to others that this is not possible
because we're retirees?  Also, if I misunderstood and we can move to
Canada, would our retirement income be taxed by both countries, as
well as by California?  I could probably transfer my investment
portfolio to a Canadian institution, but our pensions are not
transferable, therefore are subject to Federal and State income tax
in this country. Your advice would be appreciated.
david ingram replies:
A great question and I am happy to give you a basic answer.
One:  In my opinion, you should get your US citizenship before you leave.  If you come back to Canada for three or four years and then decide that you would rather go back to the US, you will have to reapply to live in the States.  Your wife would have to sponsor you again and that is a real pain in the neck. You do NOT lose your Canadian Citizenship.  Goto and read my Oct 1993 Newsletter on dual citizenship. 
Two:    As a Canadian citizen (even as a dual citizen) you may retire to Canada.  You may also sponsor your wife into Canada. If you were both "just" Americans, it is unlikely you could qualify to immigrate to Canada to retire when over 60.
Three:    Your Civil or Private pensions will be taxed at 15% under Article XVIII of the US / CANADA Income Tax Convention.  California will not tax your pensions.  Your US FICA or social security will not be taxed in the USA.  86% of it will be taxed in Canada.
GOTO and click on the US/Canada Taxation section for another 27 pages on US / Canada taxation.
I would be happy to help you with the tax and immigration paperwork when you are ready to move.
david ingram
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