Job Discussion Forums

Sigmuu · Joined: 04 May 2003 Posts: 25

Canadians!! Can I open a RRSP in Canada even though I'm a non-resident?

Greetings:
I am Canadian, living and working in the Middle East and I am a non-resident of Canada for income tax purposes. However, I would like to open a RRSP (i..e. a Registered Retirement Savings Plan) in Canada if possible. I know that the Canadian Government doesn't want any of any citizens to be burden on the Canadian State during their retirement so I thought that this might be possible. However, if this is impossible according to present Canadian Tax Law, is something similar available to Canadians who wish to eventually retire to Canada but who wish to earn tax-free income oversea before retirement?
Please post any suggestions or advice or send a message to the following email address:

[email protected]

KiteBiker · Posted: Sun Jan 02, 2005 3:06 am Post subject: RRSP

The only reason the get into RRSPs is to deflect some of the taxes you pay in that fiscal year. Since you are a non-resident and pay no taxes, RRSPs are irrelevant to your situation. Indeed, once you retire, you will be paying taxes when you withdraw them through a RRIF, so this makes no sense. Keep your money invested off-shore. You are allowed to bring in about 100,000 CDN $ upon your return without penalty. Invest in normal financial products meant for retirement. Talk to HSBC on this. They have decent programs. But keep it all legal. Don't hide or launder money. CCRA will eventually catch up to you, usually at the most inopportune time and screw up any kind of plans you may have with your savings.

Gnome · Joined: 05 May 2004 Posts: 74

I totally agree with KiteBiker. What's the point of opening an RRSP in Canada, if not to deflect taxes? On the otherhand, you could buy raw land or invest in other ways. Afterall, the Canadian government loves the "foreign" investor, which you will be as a non-resident.

sprightly · Joined: 07 May 2003 Posts: 136 Location: England

for others who may be in my situation; due to a number of factors, ccra has decided that i AM a resident. and they want my tax money. haha!!

usually, you can only put about 18% of your gross salary into an rrsp. however, if you didn't max out in one year, you can carry over the amount to the next.

my understanding is that you can go back 7 years, and deduct it from the fiscal year you are paying taxes for.
however--call your bank or the ccra!!!! the ccra folks are very very helpful, and i've never chatted with a nasty one.