# Canada <> France Tax Treaty - advice?



## silvervan1986

Hi,

I am Canadian and my wife is both French (France) and Canadian. We live in Canada. 

I am looking for advice on where to find information with respect to taxes should we decide to retire in France. Also any tips of pitfalls in this area. 

As a Canadian I will have a pension from my employer, RRSPs (which will convert to RRIF) at age 65, Canada Pension and Old Age Security (OAS). 

All of these streams of income are taxable when retired in Canada and as such I’m wondering what happens if we decided to live full time in France? Do I pay in both countries?

I’m not looking for full answers from the forum but rather guidance and suggestions on where to begin. 

Thank You


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## travertine

My Canadian wife and I are in the throws of moving permanently from Canada to France. 2022 is the transition year for tax residency and home ownership. We will continue to have investments in Canada that will fund our retirement. We have been advised that we need to stipulate the final date of departure from Canada and this date will be used to calculate capital gains accrued on our investments since they were established. The gains will be included in our 2022 tax year returns. There are mechanisms for spreading capitals gains across 2 contiguous financial years in order to perhaps minimise tax payable. The departure date effectively resets the clock for calculating future capital gains. 

If you own a home/property we have been advised to sell it before we cease to be Canadian residents as it simplifies the tax component. If the property is sold as a non resident, 25% of the capital gains on the property is automatically forwarded to the CRA. You then need to claim that back in full or part. So this year we will sell the Canadian property and buy a house in France. 

The tax advice we've received in both jurisdictions is that any tax paid in Canada will be factored into the tax due in France. So we will continue to submit tax returns in both countries going forward. It will be interesting to see how the tax processes synchronise. I'm on the west coast and my guess is there is less familiarity with French tax here than there might be on the east coast/Quebec/Ontario.


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## silvervan1986

Thanks for the quick reply. We are also on the West Coast (Vancouver). Sounds like a tax accountant maybe based in Canada where income is generated with skills to help file in both countries is a good place to start. Likely as you indicated need to work with someone in ON or PQ. I still have a few years more to work so you are quite a bit ahead of us. Curious are you / will you be French Citizens or EU Citizens. 

I would need to go through the citizenship process also of gaining French papers via my wife who is French. 


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## travertine

French residents through the Brexit process. This is a separate matter but also be aware of the ability to exchange a Canadian driver's license for a French version and try if you can to ensure you have at least 12 months remaining on the former before you commence the exchange. You don't want to end up with an expired Canadian license mid way through. Otherwise you may find yourself having to get a French license as the French do with driving schools, theoretical and practical tests.


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## Bevdeforges

The French Fisc (tax office) has really increased their online information in English in the area of taxation. Start here: International (EN)
Click on the link for "Individuals" and skip the stuff on non-resident individuals. There is quite a bit available in English, but also info in French on the various tax treaties that should be of interest to you.


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## 255

@silvervan1986 -- You should become knowledgeable of the following: CONVENTION BETWEEN CANADA AND FRANCE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL - Canada.ca . I would also recommend you settle as much as possible, while you are still in Canada -- before you move to France.

Secondly, you indicated that you're a few years out -- I'd recommend you apply for French citizenship as the spouse of a French national. Cheers, 255


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