CDN retiring in MX: preparations?

[cayzer]

Originally Posted by RVGRINGO

Welcome to the forum and to Lake Chapala. We've been here almost seven years and will be able to suggest our contractor for your renovations and can give you several names of friends who have used him, based on our recommendation.
Unless you are shipping household goods on a menaje de casa, you can apply for your FM3s in Chapala or Guadalajara after you arrive. If you do them abroad, you will have to enter Mexico within that time frame you mentioned and then, you will still have to go through the process of registering them within 30 days of arrival. Since you own a home in Mexico, you will be able to provide proof of residence. You will also need proof of income from abroad in the form of bank statements. Have a joint account in order to avoid dependency and inheritance issues.
If you have last minutes questions, drop me a PM when you get here.

We are most appreciative and relieved of the offer of your contractors name. Amazing that a forum like this exists for folks to share issues and information, it seemed an impossibility from Canada. Would also need to know how to contact contractor - imagine it will have to be in person when we arrive. Regards.

[cayzer]

Originally Posted by pedro

hola!
as one who has gone through it all[from alberta] you may pm me and i'll give you my alberta vonage phone #. i have a contractor who lives in el chante and can do amazing things.
you'll love jocotepec-that was our second choice-i have many friends there,both mexican and ferners.
the mex consulate in van is excellent.

We were so pleased to hear from you and the infor on your el chante contractor. Have no idea on how to PM you. I am an ex-Northern Albertan will appreciate any tips coming our way. And thanks for the reassuring words about choosing Joco, it all seemed perfect at the time and there is no buyers remorse just nice to hear that our instincts were right. Cannot wait to return.
Regards

[pedro]

i have sent you a pm. to retrieve it,look at the top right hand of this page and open it.
you need to be logged in to read your pm's

[mazatman]

Canada's Old Age Pension (OAP) and the Guaranteed Income Supplement (GIS) are payable to those 65 and older. To be eligible for GIS you must reside in Canada and have a low enough income to qualify. Non-residents of Canada are not entitled to GIS and are subject to a 15% non-resident withholding tax on their OAP, although you can apply for relief on this.

Canadians can qualify for Canada Pension Plan (CPP) commencing at age 60. There are no residency requirements and like OAP it is subject to 15% non-resident w/h tax. If you start receiving your CPP prior to age 65 it will be at a reduced rate compared to what you would get at 65 or older.

I believe you can apply for OAP up to one year before you reach 65 and the CPP up to one year before you are eligible to receive it.

[pedro]

there is a certain question on the 217[i think that's the application form] that if you answer truthfully you will be rejected for the 15% tax on your income as outlined in the tax treaty with mexico and canada.
we were declared as "factual"residents of alberta.so we pay income tax as if we still lived there. since we file jointly nothing is witheld on my cpp nor will it be witheld on my oap when i start getting it in july.
we pay less than 15% this way even tho we are fm3 residents of mexico and have no assets in canada except our banking and the various pensions we get.
you apply for cpp and oap 6 months before you are eligable.

[mazatman]

Canadians are entitled to ask the Canada Revenue Agency (CRA) to determine their "residency" or "non-residency" status for tax purposes using form NR73. Most are told that they are "factual" or continuing residents of Canada, even if they live in Mexico full-time. Non-residency status is difficult to attain.

The new Canada Mexico Tax Treaty stipulates that 15% withholding tax be withheld on pensions originating in Canada and paid to Non-Residents living in Mexico.
There are no capital gains taxes payable by Canadian Non-Residents living in Mexico.

Some examples of the tax consequences:
1.)A retired Canadian with a $70,000. pension living full-time in Mexico who is judged by CRA to be a continuing resident of Canada would pay about $16,500 in taxes but the same person would only pay only (15%) $10,500. if they were a Non-Resident.
2.) A person with lower income, say below $32,000. would be better off paying tax as a continuing resident of Canada as opposed to the Non-Resident rate of 15%.
Pleasedo your own calculations as provincial tax rates and deductions vary.

Just because the CRA decides that you are a continuing resident of Canada for tax purposes, that does not mean that you don't have to live in Canada to qualify for other benefits, such as: provincial health care, GIS, or even a driver's license all of which require you to be physically resident in Canada, at some time. Having any of these benefits will normally cause CRA to rule that you are a continuing resident of Canada. If you live fulł-time in Mexico and are honest you would not be entitled to any of these benefits, IMHO. There are exceptions, of course.

[pedro]

you can get these forms from the cra on line[the 217 and the nr73]. we are jumping with joy that they declared us factual residents[after a year of back and forth total bullfarb] as it means my cerveza money stays intact.they told me we could have it reviewed again if we want-jarjar! they even sent a letter, after i phoned them, to cpp to stop causing me cerveza hardship.
my imss costs less than my alberta health care did. the only thing i need from the canuck gummint is me beer money and the use of the consulate in guad to renew my passport every 5 years.
if you have an opinion-never let it be said to be humble. some puter jargon sucks.
if you live in melaque,give my regards to mi amigo sparks-por favor.