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I can say that for Canada, yes, you're correct. It starts as of the day you left (or the day you become resident somewhere else, whichever is later) As long as
by eloff 5y ago
I can say that for Canada, yes, you're correct. It starts as of the day you left (or the day you become resident somewhere else, whichever is later) As long as you meet the requirements of non-residency. Which is basically no primary ties (spouse or dependants still living there, a house or car there). There are also secondary ties like bank accounts but these may or may not matter. You have to intend to leave permanently basically.
From a tax perspective you still are taxed on Canadian source income, so if your job is in Canada nothing changes.
With digital nomad visas specifically, as they are temporary and usually confer visitor status and not resident status, you may have difficulty establishing that you've left permanently and are resident elsewhere. That seems like a grey area yet to be tested, and the CRA probably has a good case there.
I'm not an expert, so consult a real expert in the field if you want tax advice.
- galphanet 5y agoYou've greatly summed up the tax law, well done.
- pbhjpbhj 5y agoTax on trade marks must be low, so you make a company in Canada, purchase trade mark rights from a guy in Costa Rica, your Canadian company makes no profit ... isn't that the sort of thing the big companies like Amazon do to pay no local taxes.
- eloff 5y agoThis requires that you earn your income through a company under your control and that you can pay to setup a complicated tax avoidance scheme like that, and pay to defend it, and even then you may get it wrong and end up paying taxes and penalties. I don't recommend trying things like this. In this specific case I guess you'd make your money from the IP royalties in Costa Rica, so it may avoid the Canadian source income. I doubt it would stand up to scrutiny though, the courts would very likely see right through it.
- takenpilot 5y agoThe laws get _weird_ if you have "resident" status in more than one country. Just to make the rules easier to enforce, it's sometimes easier to show you have resident status somewhere else. I had much bigger issues with the fact that land ownership / house ownership / bank account laws care a lot about non-resident-ownership.
- enterexit 5y agoHere's a nice 'from the horse's mouth' sum up on how the CRA views the residency status: https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-1-residency/income-tax-folio-s5-f1-c1-determining-individual-s-residence-status.html https://www.canada.ca/en/revenue-agency/services/tax/technic...
- eloff 5y agoThank you for sharing that, it's more detailed than other information I've come across.