Leaving Canada & Moving to Panama: 1 Year Update Part 1: TAXES | 0% Tax in Panama?
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- เผยแพร่เมื่อ 26 ก.ค. 2024
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00:00 Intro
01:48 TFSAs
05:06 Cash Account (Non-Registered)
07:40 RRSPs
10:54 Other Income Sources
MISSION:
Help everyday people to invest on their own, in order to create their own source of Passive Income to enhance their quality of life and reach Financial Independence
GOALS of this Channel:
1) To share my Personal Investing Journey & Strategy with the world. Everybody needs to make their own investing decisions. I am NOT against any style of investing and I will NEVER claim my Investing strategy is the “best”; its the best FOR ME
2) Educate you about Income Oriented Investing with a particular focus on Covered Call ETFs listed on the Canadian & U.S. Stock Markets
DISCLAIMER:
The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adriano Starinieri is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adriano is not responsible for investment actions taken by viewers.
#passiveincome #investing #dividendincome #financialfreedom #livingoffdividends #covered call #high yield #income
Big UPDATE here: th-cam.com/video/Z5F7v5WyO1g/w-d-xo.html
Panamanian living in Toronto here. In Panama foreign income does not need to be declared. Sorry to admit, but yes, we are a tax heaven. (Flies away)
I worked out of Canada on two occasions, both were financially beneficial in that i was in a low tax jurisdiction. On both occasions, I was deemed a non-resident.
My biggest difficulty was on the home front. We were far away from family and friends, we missed so many small things that you do with family, birthdays, Sunday dinners, this is time you do not get back. This is the biggest cost of emigration, missing out on the hundreds of small things with friends and family.
Everyone is in a different situation, but I feel like you, I would miss family and friends back home. We have residences in Toronto and Puerto Vallarta, and spend about 6 months in each, but I understand carrying the costs for both would be difficult for many, and might prefer to have permanent residence in one.
At the end, you should pick the lifestyle that gives u a better overall quality of life.
@@Mewzyc There is no reason to pick only one, when we can have both.
@@HamiltonRb not really. There's always some trade off. You can only really have "both" is if you are rich and powerful enough . In your example. You have to spend money and time going back home for family/friends. Where as If they were already there, u wouldn't have to spend the time and money to travel
And money can't really buy you more time, best it can do is save you time.
@@HamiltonRb 6 & 6 likely works, 11 months gone per year does not work, as I found out.
Love your constant transparency with your followers. Everyone has haters, it just means that you have made it. Keep up the great and informative work.
Great video !!! Love the fact of how easily you share a lot of quality information! I appreciate it! ❤
As a Canadian who has travelled a bunch, while also investing and also earning YT income, your video is a gold mine. I have perpetually travelled on tourist visas, but maintained Canadian residency the whole time by not taking residency anywhere else. So my situation has been different, but I may permanently emmigrate one day so thanks for the vids and other resources. It's very helpful 🙌
Thanks Adrian! It's going to be tax season soon, so this is a well timed video. To summarize, you pay more taxes in Panama. I guess the living expense is super low, so you get to keep more at the end of the day? Looking forward to see the part 2 of this series. 😀
less overall. because my business income exceeds my cash account dividends . makes sense?. either way, i would have still moved . its 33 degrees here
@@PassiveIncomeInvesting Nice 👍. It's 1 degree here in Toronto. 🥶
Look forward to part two. Thank you so much 😊
Hi Adrian, 20cm of snow this morning in Montreal.....you are lucky to be in Panama. 😁 When I was younger, I lived in Africa for 3 years and I am missing that hot temperature......now I only go south 2 weeks in the winter.....it is not the same. 😁 Have a good day.
Wow. I didn’t know this. Exciting. Thanks
So if I plan to retire and move to a different country, should I start contributing to my non-registered account or should I keep contributing to my RRSP? I have maxed out my TFSA and re-invest all the dividends I get from within that account.. Dividends will be my only source of income.
Thank you for sharing!
Thanks Adriano! Such interesting info .. looking forward to part 2. What is the healthcare system like out there?
better than Canada
@@PassiveIncomeInvesting We need Part 2 please!
Great video Adrian! Interesting to see behind the curtains.
Great video! I've been an non resident many years based in the UK. Will probably head to Italy next as cost of living is low and I already have a base there. Would love to hear from other non resident guests who are into passive investing to learn from their experiences.
Italy! nice
Thanks for answering a lot of question. I had about taxes. Learning the off set with RRSP , I have been reading about tax s. When living in another country. Yes very true Also health care is important. People should I quit about befor living abroad.
All this was really good to know.
Bro dont worry Haters will hate. Tax laws are implemented by the Countries. Everyone wants to be like meh meh meh(in a funny voice lol) how come Adrian gets a break on the taxes and lives in paradise while we live like peasents in Canada and in this cold and dark. Duh he figured out how to optimize his taxes and his income. People will say what they want to say. I love the savage and spot on answer. Bro you deserve all the success. Wish you more success. :)
thanks man! i appreciate that and don;t worry , i don't give a shit about haters, they usually either sad, mad or jealous
@@PassiveIncomeInvesting 🤑🤑🤣🤣🤣
Adriano, need the second part to this...Your thoughts about Panama, living expenses, etc. My wife and I are about to explore other places to live
Adrian, if you move to Mexico the withholding rate from the US goes down to 10%, and the withholding rate from Canada goes down to 15%, and it doesn't rain that much.
Looking forward to part 2
it barely rains where I am in Panama . getting from 25 to 15 is not my biggest concern. the big concern is the other sources of income. those would probably have to be declared in Mexico right?
@p.c.h.6721 Hi, I'm planning to move long term in Mexico in the next 2-3 years, do you know how it works for the TFSA and RRSP there ? I tried looking online for the detail of the taxation agreement between Canada and Mexico but I didn't find anything for these 2 accounts. For TFSA since it's tax free in Canada, can I just let it grow without touching it or do I have to declare it each year and be taxed on it (like in the US) ? Or can I leave it grow and only have to pay 15% flat tax for every withdrawal (in this case should I max RRSP instead to reduce my tax income these years since I will pay the same withdrawals fees for TSFA or RRSP) ? Thanks for your help if you have any infos !
Been waiting for this update. Appreciate it.
To clarify, standard 25% withholding in Canada and 0% Panama tax on your foreign sourced income ? Dividends, Pension, cap gain, etc. assuming it is all sourced in Canada.
yes
Happy life no matter where you're there. Wish you only the best of the best 👍 ❤️ 👍 and thanks for all you are doing ❤
Thanks Adrian
Can you still have drip/dpp activated in your registered accounts on questrade as a non resident? Oh, and also are you allowed to make trades (not contributions) in a registered account? Thanks for his great info! ❤
great job again. Keep it up
Is it compulsory to declare non-residency if you are living outside Canada? Or could I live outside Canada and continue to file taxes as if I was living in Canada?
How are capital gains (from Canadian equities) taxed in Panama? Thanks!
25% i assume its the same
I guess it's just my age talking but I'm personally more interested in healthcare than taxes. What's the healthcare situation for non-residents? Hoping it's touched on in Part 2.
One of the biggest advantage of Panana, let's say compare to Costa Rica, is that in Panama City they have the Punta Pacifica hospital affiliated with the John Hopkins hospital in Baltimore... Other option is to do medical tourism in Kuala Lumpur at the Prince Court hospital and get a VIP full scan and exams for about $150! It is for tourists and in English. Panama residency is also less restrictive and easier than Costa Rica, but you pay more withholding taxes in Panama.
@@MarVista90066 Interesting. Thanks!!
its very good in Panama. better than Canada
Since outsource incoming aren't taxable for Panama, why not convert your main Portefolio in a small businesses which have under 10% taxes in the most province of Canada for revenu under 1M$?
And Americans can move to Puerto Rico for taxes benefits
Great video to summarize Canadain taxes for non residents, thanks.
Obviously you use Questrade as your Canadain brokerage, what restrictions are there to manage your investments with Questrade once you become a non resident? (Excluding the TFSA contribution / CRA restriction)
I'm using Wealthsimple and have read that while I don't have to close my accounts when I become a non resident, I can't do anything there, including continuing DRIP, all I can do is leave it or close it, I'm not sure if I can make withdraws or if it is a one time account closure as the only option.
While I'm a still a resident, I want to find the best brokerage to have my accounts in before leaving.
Looking forward to part two (a close friend is living in Panama now, but only 6 months/year and keeps Canadian residency.... For now)
as far as i can tell, none whatsoever besides what i talked about
I just looked for your personal panama videos from playlist. has it changed since this video posted?
no
Any regret after 1 year? or are you happy with your relocation decision?
hellz no. i aint going back
would you recommend maxing out an rrsp account before using a non registered account? I plan to retire well before 71yrs old.
its not black and white. it really depends on many factors
Hi Adrian. Two questions. Any places where you pay 0% tax on US & Canadian income ETFs and Equity. Secondly, can you please make videos on UK and Euro income ETFs? If not, can you please recommend some resources or TH-camrs if you know who believe in income investing just like you. Thank you!
Mars lol. you can never get away from taxes my friend the Gov. always wants their share in a non registered account . There will always be withholding taxes no matter where you are located .
I cannot make videos on those because i have no experience or knowledge of those ETFs. unfortunately i heard there's barely any covered call ETFs
Love the content and have been slowly building my own portfolio thanks to you.
Just had a question about withdrawal from Questrade for monthly income. Can you set up an automatic deposit to your bank account each month and if so how much does Questrade charge?
Thank you
its free to deposit to your bank. if you can do it automatically, not sure i have not checked but there very well might be that function
@@PassiveIncomeInvesting thank you for the response. Appreciate it
Very interesting, thank you. Will be waiting for part 2 ;)
If I understood correctly, Adrian is only paying Canadian taxes, no Panama taxes (except for the investment he was required to make in order to move there)?
yup.
I'd be concerned that Panama's recent decision to renege on its contract with First Quantum Minerals is going to mean a big hit to national GDP, a loss of investment credit status and foreign investment largely disappearing. That's not to mention that the Panamanian government could just as easily screw foreign nationals who have deposited large sums of money there in order to be granted residency. These are risks that are difficult to quantify in terms of likelihood, timing and severity.
i'm not
Hey Adrian, Yep, 25% witholding tax is huge. But why not just sell your shares just before they go ex-dividend, then buy them back the next day and pocket the difference... problem solved, right? Am I missing something?
that makes no sense . also i do not think 25% is huge. my pay was taxed about 45%
@@PassiveIncomeInvesting It seems to make sense. Hear me out here... example is QQQY: It went ex-dividend Dec. 1 after declaring 0.93 distribution. So Nov 30 it closed at 18.45 and Dec 1 opened at 17.52... lower by 0.93. (Just by reading the declaration, you already know exactly when and how much the price will change.)
Hypothetically if we hold 2000 units: sell 2000 on Nov. 30 for 36,900, then buy back 2000 on Dec. 1 for 36,040. We'd still hold the same # of units, but now have $1,860 cash as well. (If we simply hold through and receive the dividend, we'll only get $1,395 cash after the IRS witholding, right? Looks like you come out ahead by almost $500?)
Halfway thru the video, I was waiting for Adriano to say, I'm returning to Canada😀
wait till the end :)
lol sure let me get my shovel and boots
I didn't know moved!
nm, got it.
departure taxes ?? not mentioned ?
i talked about it in a previous video.
Curious how you picked Panama? I always thought I would go to Bahamas if I was going to do something similar.
we visited , we liked it , we moved . Veni, vidi, vici
@@PassiveIncomeInvesting Fair enough lol
Distributions that are ROC would not be taxable in either jurisdiction I assume as its not considered income in Canada?
ill have to see , but im hoping i can get the ROC portion refunded to me when i do my taxes
@@PassiveIncomeInvesting Keep us updated.
weather and taxes ..... i might move back to Victoria . great weather compared to Montreal and not hot and humid like tropical places ( which i like to visit only ) .. . taxes ? more expensive to live in Victoria than UK .. BUT .. i only pay 8% tax in canada as a resident ( dividends are my sole source of income ) .. and save a HUGE amount with a big portfolio ..
every situation is different. i have business income don;t forget
Is dividend income is taxed 8% in canada? Regardless of any amount?
cant say for certain . @@mehmetkemahli4677
yes .. as you say .. and nowhere is perfect LOL . .
@@PassiveIncomeInvesting
You go to UAE,QATAR,SAUDI its 0% tax on all income period. Coz that's their law and not a person trying to evade taxes
It sounds complicated and your choices to move specifically to Panama were probably personal. I myself moved from Canada to the US became a (dual) citizen but Canada and the USA have a Tax treaty. Hopefully that will be simpler, when I retire which will be in a few years. Now, Mexico seems to be a place I might want to live in part of the year. But anywhere I go in the world, the USA will TAX me because of US citizenship. Canada doesn't do that (yet) except for the money that you have in Canada.
I was interested in Mexico too. On my last trip a local lawyer (specialized in mexican real estate) told me that americans and europeans with a bit of money were targeted by organized crime. I might look into Costa Rica or Spain instead. Food for thought.
Hey, where is the USA PORTFOLIO UNVALE
I always thought if you withdrew money from your RRSP, your tax rate would depend upon your income for the year. With the RRSP withdrawals being counted as income.
yes but that's if you are a resident . i am a non resident now
@PassiveIncomeInvesting Interesting. That's a big incentive to go to Panama if you compare the overall tax rate of $100k in RRSP withdrawals/income living in Panama vs living in Canada for a retiree.
Didn’t you have to invest over $200k for the visa?
yes. see previous videos i discuss it in detail :) its basically in a "GIC" until June 2025
after becoming a non resident, can a person buy n sell in TFSA while living aborad?
nothing changes , besides that you just dont get any more room to contribute
@@PassiveIncomeInvesting thanks for the reply . I was told by the national bank agent that I can only sell stocks in tfsa while being non resident , and not buy. I'm so confused because I can't get official answer. Are you sure I can buy n sell ? I follow your channel but I have noticed I can't post a question on your Facebook anymore ?
@@farhancpa Chech with NBC non resident expert, not all the clerck know the rules. I have no problem selling or buying . But you can NOT add or return contribution from those account when you take money out.
About the healthcare. Go private. As long as you have $$ you can get quite decent attention, but can't be compared with Canada.
Panama private is better than Canada health service.
Hi, great video ! I'm a french Canadian from Montreal looking to move/retire abroad in 2024. I have substantial amount in my TSFA, RRSP and Non registered accounts as well with National Bank Direct Brokerage. I heard most all Banks (TD, RBC etc) do not allow non canadian residents (including Canadian citizens) to hold brokerage account once we move out of the country. Did you have any issue with Questrade?
no, that is the only reason why i went to Questrade :)
As a non resident i use National Bank Direct Brokerage. I am satisfied of their service. Yes NBDB is less expensive compare to Questrade (which i use before NBC dropped most of their fees).
Call them and ask all your questions.
smart move.. canada became such a shtty place to live since trudeau and freeland took over.
HI Adrian,
Non-financial question... Don't you guys miss all your friends and family?
no lol . its funny how people ask me about this. the truth is, we barely saw friends and family anyways due to everybody's hectic life in the city. and when we did it was always stressful. now, its much better, because when they visit its more quality time.
Thanks for the honest reply
Yeah, tax matters, 25% is huge. If Canada has a tax treaty with Panama then your tax for TFSA withdrawn income would be zero?
TFSA is tax free!
@@PassiveIncomeInvestingOps, allow me to rephrase, If Canada has a tax treaty with Panama then your tax for cash accounts withdrawn income would be dependent on your income bracket?
$1500/month in taxes? Is it still worth living there?
LOL yes. maybe you did not hear the part where all my other sources of income are NOT taxed?
Would you ever give up your Canadian Citizenship’s?
it doesn't work that way for Canada
Once you get assets over $5 Million, simply invest into real estate in a country where you can 'buy' your citizenship there, a country with no tax or very low tax, and in that way you won't pay ANY tax to Canada at all.
But check you departure tax from Canada first...
Should have moved to Cayman Islands. No CRA
Wouldn't make any difference Cayman doesn't have a tax treaty with Canada, so you'd still pay 25% on Canadian investments...
exactly
Hi do you speak Spanish
Bro u should move to Dubai ZERO Tax 🇦🇪
maybe one day!
Lived 20+ years in Dubai. No seasons. Winters are hot summers are insane hot.i rather pay tax.
I’m missing something. He says he’s not extracting money from the TSFA because it’s a source of income and doesn’t want to deplete it. Then it’s not income.
He also says he’s not extracting from his RRSP. So all the income is coming from somewhere else. This is all going against the goals of this channel.
I’m very skeptical of sponsored channels like this. He gets paid to make the videos about ETFs so they’re publicity. Since this channel and sponsored videos are making him good money, he doesn’t care if his portfolio capital is going down (and it does, these products are not sustainable long term) and has not problem revealing his portfolio, which gives an impression of transparency. But it’s the income from all these management firms and the channel that make his life what it is, not his portfolio.
Also does 1on 1 consulting (or something to the sort) which is yet another income source.
What he means is that he does not want to forfeit the tax-free growth his TFSA and RSP provides. Withdrawing from the TFSA is especially problematic because, he cannot get back the TFSA room. But if he lived in Canada, he would be able to re-contribute the withdrawn amount the following year. As for the RSP, you always lose the contribution room upon withdraw.
@@dkyrtata6688 I got all that so I'm no missing anything. He's not using any income from his portfolio.
bingo
you are definitely "missing something"
So essentially everything non registered is subject to 25%?
WoW, is also 1 year since we meet you guys Panama Vacation. Time goes by so fast. thanks for all your financial share thru the years. and happy to be following you guys since 2020 and around 10k followers then. way-to-go 🥦🐱 Jose & Josie
Happy holidays!