Author Topic: Immigrating to Canada with 1M CAD  (Read 1071 times)

Snake Armpit

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Immigrating to Canada with 1M CAD
« on: July 10, 2017, 04:40:28 PM »

First of all, I am not a native English speaker, so I apologize for any less-than-ideal language usage.

A short introduction: we are a couple, (37 and 34 years old, no kids and won`t have them) born and living in a developing country. We've had good education, opportunities and drive to secure stable and relatively high-paying jobs. We both also share a minimalist lifestyle, avoiding unnecessary expenses and trying to make sensible investments.

We were able to travel the world and see that things can be a lot better (and worse, in all fairness) than here. We also envision a short/medium term retirement.

Despite the very unfavourable exchange rate, We've been able to amass the equivalent to 1 million CAD in capital, not counting a paid-off apartment, with an appraised value of 315 K CAD.

We are thinking about immigrating to Canada as skilled professionals. After studying the immigration rules, we have reasons to believe we should be able to meet the requirements (professions, experience, etc).

If successful, our plan is to transfer the capital to Canada while initially keeping the apartment, which should be rented for around 1000 CAD / month.

Our country has an agreement with Canada aiming to avoid double taxation, but since I am still not certain about the details, I think a conservative estimate would be 500 CAD / month after "friction losses", regarding the net rent income. If everything goes well after some time, we would eventually sell the apartment.

So, I would like to know what are your opinions on how far this 1M CAD would get us regarding net income (after taxes), we are thinking about investing in the Vanguard U.S. Total Market Index ETF. We also accept other investment suggestions.

Our initial plan was living around Victoria, BC. We know it's an expensive city, but we like the area and I think we are frugal enough to give it a try.

Learning how much net passive income we would earn will enable us to estimate for how long we would still need to work (in Canada, here or both) to make our early retirement in Canada possible. The tax rates are the main source of doubt regarding these investments.
Thanks a lot for your attention and sorry for the long message! It was very nice to find this site and learn so much. Thanks for everyone involved!


  • Bristles
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Re: Immigrating to Canada with 1M CAD
« Reply #1 on: July 11, 2017, 10:02:33 PM »
Welcome as possible future canadians!  In BC it will depend.  are your professions ones that can work in smaller towns, or must you be in larger cities?  BC is beautiful, but it is an expensive place.  generally the "smaller" towns are not as expensive.  I am not from BC so i can't give a lot of suggestions as to which areas are best/worst. 

For a lot of us, we follow recommendations on here, but there is also a site called that has a lot of great choices for Canadians wanting to invest.  as for returns, i'm afraid i'm not a lot of help
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  • Bristles
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Re: Immigrating to Canada with 1M CAD
« Reply #2 on: July 12, 2017, 12:42:01 PM »
Hello and perhaps a future welcome to Canada!

I'm sorry I can't contribute regarding taxation issues for passive income. I currently have a small amount in taxable accounts, and the larger accounts in tax-advantaged accounts.

Although I've visited the west coast, I can't really speak about the cost of living - I live on the east coast. The only thing I can say is that 1M CAD is enough for both myself and my partner to live on in a small city (Québec City). If, for example, we assume this is like a 40k CAD salary before taxes, it's enough to live comfortably for two here.

I wish I could help - but I'm glad you're considering this lovely country to come retire :-)


  • Magnum Stache
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Re: Immigrating to Canada with 1M CAD
« Reply #3 on: July 12, 2017, 02:08:30 PM »
CANADIAN dividends are taxed very favourably. Foreign dividends are taxed as normal income. Capital gains are taxed at 50% normal income.

Bear in mind there is dual taxation; from the Federal level, and Provincial (or Territorial I guess, should you live in a Territory not a Province).

If you move to Canada for 10 years then leave, you will be taxed capital gains on the difference between your investments when you leave (total value, in CAD) vs when you arrive.

You won't have much in the way of tax shelters.

It doesn't matter "where" the capital is; you will be taxed on it in Canada if you are Canadian resident. Same with rental income, though the country where 'real property' is located gets to tax first; then you claim that as a tax credit against the tax you would pay to Canada. IE, you pay the greater of each country's tax rate on rental income, at best.

If you had $6k rental + $30k investment income, you'd be looking at maybe $5k total in tax - depending on province, as I said. If you're working of course then you'd be paying much more.

The day you immigrate, you must get a valuation on the apartment. The same as with your investments, if/when you leave Canada, you would pay cap gains on any difference in the value.
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With This Herring

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Re: Immigrating to Canada with 1M CAD
« Reply #4 on: July 13, 2017, 11:14:08 AM »
Posting to follow - purely for curiosity
Go soak your beans.  You know you keep forgetting.