Author Topic: Moving to Canada from Ireland - ETF check  (Read 1082 times)

cooker3

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Moving to Canada from Ireland - ETF check
« on: April 06, 2021, 11:01:43 AM »
Hi all.

I am Irish and currently living there. I am meant to be moving to Canada on a 2 year Work holiday visa...of course not guaranteed but let's say I get in at some point.
I hope to try qualify for Permanent residence and make Canada my home but it's by no means certain or even hugely likely.

I am looking to buy Ä10k in ETFs soon on Degiro, a EU based platform. It would be a accumulation fund. I don't have any other investments

What's the tax situation with how I declare that and what I would pay on that considering I am not going to be tax resident in Canada but will be tax resident in Ireland this year?

FIRE Artist

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Re: Moving to Canada from Ireland - ETF check
« Reply #1 on: April 06, 2021, 01:01:59 PM »
I believe that you will only need to pay taxes on your Canadian earned income while in Canada, so donít worry about your ETF as it is not held in a Canadian bank and you will have no obligation to report your world wide income to Canada.  You will be considered not normally resident on that kind of fixed term visa so you file as a Non-Resident for tax purposes. 
« Last Edit: April 06, 2021, 01:04:30 PM by FIRE Artist »

cooker3

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Re: Moving to Canada from Ireland - ETF check
« Reply #2 on: April 07, 2021, 05:26:18 AM »
Excellent. Thanks Fire Artist.

Goldielocks

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Re: Moving to Canada from Ireland - ETF check
« Reply #3 on: April 16, 2021, 02:38:46 PM »
Yeah,  Fire Artist's reply only applies to non-residents -- or if Ireland considers you to still be resident (per the tax treaty)  while you are living in Canada.

I think a 2 year work visa would normally put you (eventually) as "resident" or even "deemed resident"? (e.g., if you are on vacation here for more than 183 days and do not keep residential ties in Ireland).   

Do you intend to move to Canada and make your primary residence here?  Will you remain for more than 183 days each year? - Resident / immigrant, and you declare your move / entry date on your first tax return.

If you reside primarily in Canada for more than 183 days a year, with the intent to stay, you pay Canada taxes for the portion of year after you arrived.

If so, this is how it works for resident aliens:

1.  You pay taxes on world income earned while you were deemed resident in Canada, via your tax return. (date after you entered canada).
2.  On the CDN tax return you state how much $ taxes were paid to foreign countries for the income earned while you were deemed resident in Canada.  This is subtracted from the taxes owed to Canada.

Basically, it's a wash, you don't pay double taxes, but will pay the Cdn tax rate, which might be higher than Ireland.

For some work visas, you may be considered to remain a resident of Ireland despite living in Canada (e.g., Irish military stationed here while you maintain a home in ireland?  work for the embassy? Some oil and gas companies with camps,  etc).  some very temporary visas...  You need to figure out if Ireland would still consider you resident even after you move here for the visa.

A deemed resident would need to be considered a resident of their home country still, even if they reside in Canada for more than 183 days.   Would Ireland think that you are still resident there?    We have a tax treaty, so the "deemed non-resident" rules would apply, and Fire Artist is correct -- Cdn taxes on Cdn sourced income only.

I just can't imagine what type 2 year work visa, especially after you make an application for permanent residency (while on work visa), would keep you as a resident of Ireland while living primarily in Canada.