[RePete]

[quote=”costaricafinca”]You really should contact your local tax expert and not rely on forum members, especially when most replying are from the USA.:roll:
Also check with your local government ‘Service center’.
For tax purposes you may wish to become a ‘non-resident of Canada’.
An excerpt from the ‘Service Canada page’ .
“If you are a non-resident of Canada for income tax purposes, your CPP payment may be subject to non-resident tax up to a maximum of 25% of the gross benefit amount. The tax rate depends on the country where you live. If your income is low, you can apply to have the rate reduced. For more information, please contact the Canada Revenue Agency”.

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We will be moving to Mexico when our home sells (hopefully in a month or two). Our home equity and pensions will stay in Canada in our same bank account and the pensions will be taxed at the source by the fed/provincial governments. OAS, CPP and Super Annuation (municipal pension fund) will be taxed by the CRA based on an agreement with Mexico that sets the rate at 15%. We were told we must continue to file our Canadian taxes and could expect to get most of that tax back at filing time. There will be no capital gains applied to our home sale because it is our principle residence, therefore it is not considered taxable income. There are a few other things to consider, such as how the CRA rates your conection to Canada in the long term, so check on their website to place your selves in a catagory. But after all the advice you get here in digested, I agree that a visit to a tax lawyer is your best bet.

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