Tax Implications For Canadian Marrying Foreigner And Residing Abroad

by Tax Guy - Burlington Accountant on March 23, 2009 Print This Post Print This Post

Question: I am self-employed and for the past few years I have been living in Argentina but as I don’t have official residency and I maintain ties (credit cards, bank accts, investments, RRSPs) with Canada I continue to file my taxes in Canada as a resident. However later this year I will be marrying my Argentine boyfriend and we will continue to reside in Argentina. Once married I will be issued with a national identity number here and will be given legal residency. However since we have no plans to move to Canada at this time my future spouse will retain only Argentine citizenship and residency. What are the tax implications for this situation? I do not own any property in Canada and we currently do not own property in Argentina either. I do want to continue to contribute to my RRSPs as I don’t trust the economy of Argentina at all, least of all their pension system. Should I keep residency status in Canada and continue to file my taxes there? Can I claim my spouse on my tax return, or should we just file separately, him in Argentina and myself in Canada? I’m nt sure what the tax implications are for this situation and there is no literature on the CRA website that applies to this situation.

Take a look at the CRA site and search “non-resident”. You will find the requirements that determine your residency.

I would then suggest contacting the CRA to determine if you are a resident.  If you are not a resident or will take steps to sever residency you should speak with an advisor in Canada (BDO Dunwoody in Toronto or Deloitte can help).

In the end, marrying your boyfriend does not necessarily change your residency in Canada but may put you into a position where you might have to pay tax in both countries on the same income.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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