Canada Immigration Information for Retirees

Summary: This article details specific Canada immigration information for retirees; it covers taxes, pensions, healthcare in Canada and much more

Canada is one of the most popular countries in the world for those looking to retire abroad and achieve a good standard of living.  For British citizens Canada is their number 4 choice beaten only by good old Spain, Australia and France.  This article is specifically about Canada immigration information for retirees or soon to be retired persons.

First things first – yes, the standard of living achievable in Canada is excellent…but the cost of living is not necessarily cheaper in Canada than it is in the US or the UK for example, therefore those thinking specifically about retiring abroad have to look at this fact carefully because often in retirement money is restricted and has to go far further.

Income taxation in Canada, especially for those living on a restricted pension income is high, and anyone resident in Canada for over 183 days in a tax year will be liable to pay income tax.  Taxes vary because there is a federal tax in Canada as there is in America and then each province charges its own income tax on top.  On average those on a medium pension income of around GBP 50,000 annually will attract between 26 and 30% income tax which is higher than they would pay in countries such as the UK or Cyprus for example.

Having said that, Canada is actually a good place for retirees when it comes to both capital gains tax and inheritance tax…

Essential Canada immigration information for retirees includes the fact that inheritance tax or death duty is not levied in Canada and those who move to reside in the nation permanently can usually escape their own inheritance tax liabilities in the country they originally herald from after a period of five years.  Naturally a little depends on the country the individual originates from as well as a few other factors and specialist tax advice should always be sought.

In terms of capital gains tax, it is levied on a person’s estate at death but at a far lower rate than in the majority of nations worldwide – furthermore those moving to Canada actually have their assets valued for CGT purposes when they become resident meaning that any gains that have already been built up will be wiped off and the slate left clean as long as they do not return to their country of origin for a fixed number of years.

Just one more word about tax before we all fall asleep!  The taxes levied are actually put to good use in Canada; for example Canada’s health care system is funded by taxes and it is exceptionally good, offering free care to all.  Naturally this is of paramount importance to those planning their retirement overseas.  We all need peace of mind when it comes to our welfare and to discover that taxes paid go to pay for our potential care is a good thing!

In terms of specific Canada immigration information for retirees the bad news is that Canada doesn’t welcome retired persons as an individual group of people into their visa program.  Therefore if you’re considering retiring to Canada and you have family already living in the country you can apply for immigration stating that you will be joining them.  The other alternatives include starting a business in Canada, investing in the nation or getting a job there for a few years before retirement.  The Citizenship and Immigration Canada website contains the essential, up to the minute information for immigrants and comes highly recommended by us.

Property in many regions of Canada is incredibly cheap and especially in Eastern Canada a decent family home can be bought for a fraction of the price of property in the UK or Europe for example.  There are no restrictions on those coming from abroad who wish to own property in Canada either which is good news and property can be purchased as a holiday home or investment prior to retirement abroad. 

And finally, the standard of living in Canada is high, the cost of living is not restrictive, Canadian people are generally very welcoming and the nation as a whole has something of a reputation for welcoming citizens of all ages, nationalities, backgrounds and beliefs meaning that it can be incredibly easy to settle in and get on with retirement in Canada.

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