Expert: Ron - 2/13/2004

Question
I am interested in the possible tax advantages for Canadians living in Mexico full time as nonresident Canadians. Please suggest reading material and contacts.  

Answer
Hola Bob: I can not recommend directly any advisors on non-residency. Your accountant might know someone in the business. But you really need to do a lot of the research yourself. We did it all ourselves. I have yet to meet an advisor that really understands all the rules. For instance we were told that if Canadian income is low, there may be no savings because of the 15% withholding tax. But by filing under Section 217 of the Act you might pay only 8- 10% Canadian Tax.

Reading Material: Canadians Resident Abroad-Gary Duncan and Elizabeth Peck(a very good intro book), search CCRA's site www.ccra-adrc.gc.ca/menu-e.html on RESIDENCY and read their info and forms. Do the same search on the CARP site www.fifty-plus.net/ Take a look at one of the many company's such as www.canadiansinmexico.com, www.expat.ca

I suggest getting a full understanding through your own research before contacting an advisor.

Hope that helps,
   Ron