I just spent the last five years living/working in the Middle East and so I know some things about this...
I got a temporary job abroad and I am not sure if I count as a resident or not for TFSA purposes. Let me highlight that I WANT TO BE a resident of Canada. I WANT to return (I'm applying for jobs back home in Ottawa but no luck so far). I WANT to contribute to my TFSA. And I surely WANT my contribution room to not stop increasing.
Congratulations on your new job :) - I guess? I hope you are enjoying it, even if it's not where you want to be long term!
Apparently one needs to report themselves to the CRA and there is a form and process through which they will evaluate whether you're still a resident.
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html - website with info
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/nr73.html - pdf form
So Q1: Has anyone had to go through the form and that process and could report what to expect?
I did submit NR73 myself, for Reasons, but it's neither necessary nor useful for most people. To clear up a misunderstanding here: this form is not required in order to either change or maintain your tax residency status. The way you change your tax residency status to non-resident is by submitting a "departure" tax return to CRA (when tax season comes around) for the year in which your residency changed. You don't do it by submitting NR73.
And if you do submit NR73, all you get in response is a letter indicating CRA's
opinion as to whether they consider you a resident or non-resident based on the facts you provide. This is a non-binding opinion and CRA reserves the right to change their minds at a later date.
Since you don't want to change your residency status anyway, you can skip NR73 (no problem if you already submitted it, but it's just pointless for you). What you do need to do is submit a tax return to CRA at the normal time of year, and include your foreign income...you will want to familiarize yourself with the terms of the
tax treaty between Austria and Canada; treaties like this are meant to prevent double taxation. You will almost certainly have to submit a tax return to both countries, but you shouldn't be double-taxed (you may end up paying the higher of the two tax rates, though, whether that's Canada's or Austria's).
Austria is unlikely to recognize your TFSA as tax-advantaged space (this will depend on the terms of the treaty, but usually RRSPs are recognized and the newer TFSAs aren't). Austria will probably consider your TFSA to be the same as a regular taxable account, nothing special.
However, since you will still be a tax resident of Canada, you can certainly continue contributing to your TFSA and you will continue getting additional space for it every year, the same as any other Canadian resident. And Canada won't tax it.
It's possible that you would be better off doing RRSP contributions instead.
Q2: does anyone have an idea what the odds are one to be deemed nonresident... seems quite radical to me, as if my country is disowning me!!!
Hah. Well, generally speaking, it's becoming a
non-resident that requires effort on your part to make happen. Staying a tax resident is the default, and I know people who've lived and worked abroad for many years and yet are still tax residents of Canada. If you are doing temporary contract work outside Canada and you intend to repatriate after that, CRA would deem you a resident in that situation anyway, no question (even if you didn't want them to).
Q3: do I need a tax consultant for that? I reached out to a company that specializes in expat taxes and they asked 1500 for a "10 hour mandate" that I could "spend as I wish". That sounds expensive to me and also I don't know if they can actually do something for me or will it be just "here's the form, fill it and we send it to CRA and tell u their reply" type of service.
Mmm, I'd be hesitant to hire an accountant in your situation, as it sounds relatively simple. Maybe try dealing with it yourself first and see how you make out; you can always hire someone later. Remember you can contact CRA directly if you have questions too.
Right now I'm saving money but I'm afraid to contribute to TFSA and here (EU) there's a 30% tax on capital gains and CRAZY brokerage fees so I'm hesitant to invest where I am. So I'm not sure what to do with my money...
I'm not super familiar with the expat investing situation in Europe, but I'm aware that brokers are significantly more expensive there. However, if you're still a Canadian resident, you should be able to open/maintain an account with a Canadian brokerage like Questrade just fine. I kept my Questrade account as a non-resident, no problem.
During this time, you may still owe the 30% capital gains tax to Austria on your investment accounts that are located in Canada - I can't speak to that (check the tax treaty)...but that has nothing to do with whether you're allowed to
have such accounts. And since you have long-term plans to live in Canada, I'd be inclined to keep these accounts in Canada, in your place. Just simplifies your life.
