Im Canadian moving to France for 1 year, Spain for 1 year and Portugal for 1 year. All using the Youth Mobility Visa. From the information Ive gathered, after residing in a European country for over 180 days I will be required to pay taxes. Will I be required to continue paying Nova Scotia taxes (that’s where I’m from) as well? Is there a way to lower my Canadian taxes while I’m abroad? I had plans to buy a house and being taxed twice will really cut into my savings.
All advice welcome ! Thanks :)
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At least in the US we are taxed globally but you deduct any taxes paid to foreign governments from US taxes. So if I owe the US $10 and pay Portugal $8 in taxes, I pay the US $2. My total tax burden is the same.
Canada and NS may be different of course, this is just as an example of how expat taxes can work. I highly encourage you to get advice from a tax professional and a lawyer who specializes in international tax arrangements.
Also almost everywhere I have ever lived has taxed people when they move based on their intent. I know for Portugal at least that we owe taxes when we arrive if we intend to stay for more than 60 days. We owe those taxes immediately, not after a period of time. I imagine you will pay a full year of tax in each of those countries, not only after 180 days.
That’s something to ask your provincial gov ('s website) tbh. As far as I know, though, most countries typically have agreements in place to avoid double taxation, with the US being a notorious exception.
The US does have tax agreements (around 70), but they’re written in such a way (“Saving Clause”) that the US reserves the right to tax its citizens and greencard holders.
You need to determine your residency status in Canada which will be based on how you maintain your residential ties with Canada while you’re abroad.
thank you for your response