# Income Taxes for Canadians Living in Mexico



## HolyMole

If my wife and I go through with our plans to relocate permanently to Mexico:
All our regular income will be from Canadian government pensions (retired Federal public service pension plus Old Age Security, CPP and a small QPP pension), and from Canadian savings accounts and, at some point, from cashing RRSP's.
For Canadians residing in Mexico, I believe the withholding tax is a flat 15% at source. The tax rate for withdrawals from RRSP's depends on the amount of the withdrawal. 
I realize Canada Revenue Agency is the source of all taxation info....but getting through by telephone is an exercise in frustration.
Since our income is modest, the effective tax rate for myself is around 10%. Due to the ability to split pension income, my wife pays little or no income tax.
I realize that if we have little or no income from Mexican sources, we would not be required to file Mexican tax returns. As a Canadian, I am always required to file a Canadian income tax return, regardless where I live in the world. 
My question:
If 15% tax is deducted from source in Canada, would I get a refund if my actual effective tax rate, after filing my tax return, is closer to 10%? Or is that 15% a fixed rate that I pay, regardless of how low my annual income is? 
(It wouldn't seem fair to tax an expat at a rate higher than if I was living in Canada.....would it?)


----------



## f3drivr

HolyMole said:


> If my wife and I go through with our plans to relocate permanently to Mexico:
> All our regular income will be from Canadian government pensions (retired Federal public service pension plus Old Age Security, CPP and a small QPP pension), and from Canadian savings accounts and, at some point, from cashing RRSP's.
> For Canadians residing in Mexico, I believe the withholding tax is a flat 15% at source. The tax rate for withdrawals from RRSP's depends on the amount of the withdrawal.
> I realize Canada Revenue Agency is the source of all taxation info....but getting through by telephone is an exercise in frustration.
> Since our income is modest, the effective tax rate for myself is around 10%. Due to the ability to split pension income, my wife pays little or no income tax.
> I realize that if we have little or no income from Mexican sources, we would not be required to file Mexican tax returns. As a Canadian, I am always required to file a Canadian income tax return, regardless where I live in the world.
> My question:
> If 15% tax is deducted from source in Canada, would I get a refund if my actual effective tax rate, after filing my tax return, is closer to 10%? Or is that 15% a fixed rate that I pay, regardless of how low my annual income is?
> (It wouldn't seem fair to tax an expat at a rate higher than if I was living in Canada.....would it?)


The CRA determines residency for tax purposes not by where you reside but by ties to the Country. They will consider you a resident for tax purposes if you have a primary tie or too many secondary ties to Canada. Examples of primary ties include maintaining a residence in Canada that is available for your use or having dependents residing in Canada. Secondary ties are things like Bank Accounts, Credit Cards, Driver's Licence, Club Memberships, even your Passport. The CRA will not just decide to declare you a non-resident and tax you accordingly. If you wish to be considered a non-resident then the onis is on you to prove that you have severed ties and if you can not then they may deny your claim even if you have not set foot in Canada for several years.

You should probably discuss your situation with a professional to determine what the advantages and disadvantages might be of being a resident versus a non-resident. You are correct that as a a non-resident living in Mexico you would pay a flat rate tax of 15% on all Canadian source income. You will also lose the right to split your pension income, to contribute to the new tax free savings accounts and probably other things as well. The CRA also charges a departure tax on assets that you are deemed to have disposed of when you leave if you claim non-residency. This includes your principal residence if you do not sell it before you leave. 

You may be better off to maintain certain ties to Canada and simply file tax returns as if you still live there. You could use a Family Member's address or you could put down your address in Mexico as your Princial Residence and still be considered a resident of Canada for tax purposes. If you choose the second option you would probably be considered a deemed resident of Canada and not a resident of any Province. In this case you would have to pay additional federal tax in lieu of what you would have been paying in Provincial tax which depending on which Province you live in might actually be more than the Provincial tax. You would also lose any Provincial tax credits.


----------



## phil&sue

Of topic a little bit... We live in the USA and am I understanding this correctly? Mexico taxes pension and social security from other countries. 
Example: I'm 57 have pension and will be receiving social security (if its still there) at 62. Does Mexico tax my income form the USA? We are planing on selling our homes in the US and building a house in the Sisal area of Mexico. This would be our only house but will have a address in Tennessee (no state income tax on pensions)

Thanks
Phil & Sue


----------



## RVGRINGO

No. Mexico only taxes your income, if any, from within Mexico. Your US or Canadian pension and investments are not taxed by Mexico. You are taxed on them in your home country, where they are paid.


----------



## phil&sue

Thanks we like the sound of that.... Double taxes would be terrible. What I know of the Mexican 15% 
tax structure actually sounds better then the USA's.

Thanks,

RVGRINGO


----------



## RVGRINGO

Yes, the Mexican IVA is a 15% sales tax that is included in the sales price, not added on. As such, if you see a shirt marked 175 pesos, that is the total price you pay.


----------



## HolyMole

*Resident? Non-Resident? Which is the least hassle?*

Thanks for the info, f3drivr.
I'm aware of the CRA issues determining resident/non-resident status. One wonders what advantage there would be to establishing non-residency in Canada for taxation purposes. It sounds like a lot less hassle just to, as you suggest, use a Canadian family member's address as my address-of-record for Canadian bank accounts, RRSP, CPP/QPP, OAS and my pension from the federal public service. I don't know, however, about the legality of doing that. 
Losing the right to split pension income for those deemed to be non-residents for taxation purposes is important news to me.


----------



## HolyMole

HolyMole said:


> Thanks for the info, f3drivr.
> I'm aware of the CRA issues determining resident/non-resident status. One wonders what advantage there would be to establishing non-residency in Canada for taxation purposes. It sounds like a lot less hassle just to, as you suggest, use a Canadian family member's address as my address-of-record for Canadian bank accounts, RRSP, CPP/QPP, OAS and my pension from the federal public service. I don't know, however, about the legality of doing that.
> Losing the right to split pension income for those deemed to be non-residents for taxation purposes is important news to me.


I just realized I didn't receive a response to my original question: perhaps it wasn't clear enough.
Assume that Canada Revenue Agency determines that I am non-resident for income tax purposes....and I then have the prescribed 15% withholding tax applied to all my Canadian-sourced income. 
Question: When I file my income tax each spring, if my bottom-line tax liability is less than the 15% that was withheld, do I get a rebate?


----------



## f3drivr

HolyMole said:


> I just realized I didn't receive a response to my original question: perhaps it wasn't clear enough.
> Assume that Canada Revenue Agency determines that I am non-resident for income tax purposes....and I then have the prescribed 15% withholding tax applied to all my Canadian-sourced income.
> Question: When I file my income tax each spring, if my bottom-line tax liability is less than the 15% that was withheld, do I get a rebate?


As a non-resident you can file an election under section 217 of the Canadian Income Tax act to pay tax at the same rate as Canadian Residents. You can also reduce your witholding tax by filing Form NR5. I am not certain but I believe that as non-residents you would still not qualify to split pension Income. 

It seems unlikely that CRA would determine that you are a non-resident unless you apply for it. There is no mandatory application process that determines residency status, rather residency is determined by examination of the facts in each particular situation. As long as you maintain ties and do not declare yourself a non-resident they should continue to consider you a resident for tax purposes. If you leave Canada but maintain a dwelling that is available for your use year-round, CRA will not consider you to have severed your residential ties with Canada. I have not read anything that says that that dwelling can not be a room in a family member's house. I am still several years away from retirement but when I do retire I will be in a similar situation to yours. I would be interested to know what you decide to do.


----------



## HolyMole

f3drivr said:


> As a non-resident you can file an election under section 217 of the Canadian Income Tax act to pay tax at the same rate as Canadian Residents. You can also reduce your witholding tax by filing Form NR5. I am not certain but I believe that as non-residents you would still not qualify to split pension Income.
> 
> It seems unlikely that CRA would determine that you are a non-resident unless you apply for it. There is no mandatory application process that determines residency status, rather residency is determined by examination of the facts in each particular situation. As long as you maintain ties and do not declare yourself a non-resident they should continue to consider you a resident for tax purposes. If you leave Canada but maintain a dwelling that is available for your use year-round, CRA will not consider you to have severed your residential ties with Canada. I have not read anything that says that that dwelling can not be a room in a family member's house. I am still several years away from retirement but when I do retire I will be in a similar situation to yours. I would be interested to know what you decide to do.


Thanks again, f3drivr. You sound like a CRA-person. (I'm ex-Service Canada/EI). If we move to Mexico, it will be lock-stock-and-barrel, with no residence in Canada. We can easily continue to use a relative's Canadian mailing address for bank account purposes, and continue with Direct Deposit of our CPP, QPP, OAS and my government pension into that Canadian bank account.
I seem to recall that one cannot continue to maintain an RRSP if one is non-resident of Canada, although "non-resident" in this case may refer to an official CRA determination, rather than just the simple fact that one resides in Mexico.

In our case, what is holding us back right now from the BIG STEP is medical concerns.....as inefficient as our Canadian healthcare system is, it's light years ahead of anything in the US or Mexico......the relatively low Canadian dollar and the present downturn in Canadian home prices. Regarding the dollar, we had booked flights to spend 6 months split between Panama and Costa Rica to scout retirement locations....only to have the Can $ drop 20% against the US $....and effectively ruling out Panama. Fortunately, (or unfortunately), medical problems forced us to cancel the entire trip anyway.


----------



## f3drivr

HolyMole said:


> Thanks again, f3drivr. You sound like a CRA-person. (I'm ex-Service Canada/EI). If we move to Mexico, it will be lock-stock-and-barrel, with no residence in Canada. We can easily continue to use a relative's Canadian mailing address for bank account purposes, and continue with Direct Deposit of our CPP, QPP, OAS and my government pension into that Canadian bank account.
> I seem to recall that one cannot continue to maintain an RRSP if one is non-resident of Canada, although "non-resident" in this case may refer to an official CRA determination, rather than just the simple fact that one resides in Mexico.
> 
> In our case, what is holding us back right now from the BIG STEP is medical concerns.....as inefficient as our Canadian healthcare system is, it's light years ahead of anything in the US or Mexico......the relatively low Canadian dollar and the present downturn in Canadian home prices. Regarding the dollar, we had booked flights to spend 6 months split between Panama and Costa Rica to scout retirement locations....only to have the Can $ drop 20% against the US $....and effectively ruling out Panama. Fortunately, (or unfortunately), medical problems forced us to cancel the entire trip anyway.



I do work for the Federal Government but not CRA, I have spent many hours reading about this subject and have come to the conclusion that the best course of action for us will probably be to remain residents for tax purposes, especially with the new pension splitting and the TFSA. We will also keep accounts in Canada and use xe dot com to transfer money to our account in Mexico.

You can keep an RRSP until age 69 even as a non resident. The money can continue to grow tax free but there would be a non-resident withholding tax on any withdrawals.

I am not sure what we will do for medical either. I made some inquiries about private coverage the last time I was in Mexico and there doesn't seem to be a plan available that will cover everything, most are major medical only. We will probably end up going with IMSS.

Our dollar is just as strong now against the peso as it was when we were at par with the US Dollar. Canadian home prices are down but nothing like they are in parts of the US. Mexican Real Estate market has slowed also. Canadian Real Estate Prices are expected to fall more and it will probably take several years to recover. If I were in a position to retire now I would go.

We will be retiring in Mazatlan, we have already purchased a condo and a piece of property there. We are hoping to be there for 3 months a year in 5 years and full time in 10.


----------



## HolyMole

f3drivr said:


> I do work for the Federal Government but not CRA, I have spent many hours reading about this subject and have come to the conclusion that the best course of action for us will probably be to remain residents for tax purposes, especially with the new pension splitting and the TFSA. We will also keep accounts in Canada and use xe dot com to transfer money to our account in Mexico.
> 
> You can keep an RRSP until age 69 even as a non resident. The money can continue to grow tax free but there would be a non-resident withholding tax on any withdrawals.
> 
> I am not sure what we will do for medical either. I made some inquiries about private coverage the last time I was in Mexico and there doesn't seem to be a plan available that will cover everything, most are major medical only. We will probably end up going with IMSS.
> 
> Our dollar is just as strong now against the peso as it was when we were at par with the US Dollar. Canadian home prices are down but nothing like they are in parts of the US. Mexican Real Estate market has slowed also. Canadian Real Estate Prices are expected to fall more and it will probably take several years to recover. If I were in a position to retire now I would go.
> 
> We will be retiring in Mazatlan, we have already purchased a condo and a piece of property there. We are hoping to be there for 3 months a year in 5 years and full time in 10.


I retired in Dec/06 but have gone back to work as a "casual callback" for 4 months in the summer of 2007 and again in summer of 2008....and may do so again this summer.
For full-time residence in Mexico, Comprehensive coverage under the Public Service Healthcare Plan, (PSHCP) is expensive...and, for the life of me, I cannot comprehend what coverage it does NOT provide. I've asked the PSHCP people, but they don't seem to have any idea themselves. Reading the actual document doesn't help. However, I'm sure that Comprehensive PSHCP coverage, plus IMSS, would cover just about anything, but at a fairly high monthly cost, in my opinion.

(I once spent weeks, as an employee, e-mailing the PSHCP to ask how they would rebate for prescription drugs purchased in Mexico, since the vast majority of such drugs are available over-the-counter....and the "receipt" you get is the same as the one you would get for purchasing a popsicle. It seems that if my medical history with SunLife showed regular purchase of a particular drug, then they would reimburse for over-the-counter purchase of the same drug in Mexico....with a proper receipt.....without a doctor's prescription.)

We also like Mazatlan as a place to live, but haven't experienced the May-November period there, which, we're told, is brutally hot and humid....much more so than our preferred location much further south, in Zihuatanejo, which is reportedly not only more bearable in the rainy season, but...from our own experience.... more reliably warm and dry in the Nov/Dec to April period. Of course the other alternative is to live inland at higher elevations.....and maybe avoid those ****** prices on the coast.


----------



## f3drivr

HolyMole said:


> I retired in Dec/06 but have gone back to work as a "casual callback" for 4 months in the summer of 2007 and again in summer of 2008....and may do so again this summer.
> For full-time residence in Mexico, Comprehensive coverage under the Public Service Healthcare Plan, (PSHCP) is expensive...and, for the life of me, I cannot comprehend what coverage it does NOT provide. I've asked the PSHCP people, but they don't seem to have any idea themselves. Reading the actual document doesn't help. However, I'm sure that Comprehensive PSHCP coverage, plus IMSS, would cover just about anything, but at a fairly high monthly cost, in my opinion.
> 
> (I once spent weeks, as an employee, e-mailing the PSHCP to ask how they would rebate for prescription drugs purchased in Mexico, since the vast majority of such drugs are available over-the-counter....and the "receipt" you get is the same as the one you would get for purchasing a popsicle. It seems that if my medical history with SunLife showed regular purchase of a particular drug, then they would reimburse for over-the-counter purchase of the same drug in Mexico....with a proper receipt.....without a doctor's prescription.)
> 
> We also like Mazatlan as a place to live, but haven't experienced the May-November period there, which, we're told, is brutally hot and humid....much more so than our preferred location much further south, in Zihuatanejo, which is reportedly not only more bearable in the rainy season, but...from our own experience.... more reliably warm and dry in the Nov/Dec to April period. Of course the other alternative is to live inland at higher elevations.....and maybe avoid those ****** prices on the coast.


I wasn't aware that PSHCP offered coverage for non-residents. I believe that to be eligible for the Emergency Travel Assistance Benefit, one must be a resident of Canada and the coverage is only good for 40 days from the day you leave the country. I also know from personal experience that Mexican Hospitals will try to get you to pay yourself and then claim the expense when you get home rather than accept direct payment from Sunlife. I was actually not planning to keep PSHCP when I retire since I know that I will not be returning to Canada but I will inquire about coverage for non-residents.

The humidity in Mazatlan is really only bad from July to September and it's not like I will be doing outdoor physical labour when I get down there. With A/C and a small pool it will not be bad at all. The prices are also still low compared to other places on the coast and Mazatlan also has every amenity one could want and cheap flights home. Oh yeah, and my wife is from there so for us it wasn't a difficult decision.


----------



## HolyMole

f3drivr said:


> I wasn't aware that PSHCP offered coverage for non-residents. I believe that to be eligible for the Emergency Travel Assistance Benefit, one must be a resident of Canada and the coverage is only good for 40 days from the day you leave the country. I also know from personal experience that Mexican Hospitals will try to get you to pay yourself and then claim the expense when you get home rather than accept direct payment from Sunlife. I was actually not planning to keep PSHCP when I retire since I know that I will not be returning to Canada but I will inquire about coverage for non-residents.
> 
> The humidity in Mazatlan is really only bad from July to September and it's not like I will be doing outdoor physical labour when I get down there. With A/C and a small pool it will not be bad at all. The prices are also still low compared to other places on the coast and Mazatlan also has every amenity one could want and cheap flights home. Oh yeah, and my wife is from there so for us it wasn't a difficult decision.


Check out www.pshcptrust.ca/english/introduction/default.shtml 
As a federal public service retiree, you can purchase Comprehensive coverage under the PSHCP that covers you as a full-time resident of a foreign country....anywhere in the world. This has nothing to do with Emergency Travel Assistance or the 40 day business. Comprehensive offers 3 levels of coverage: $117/mo, $134 and $162 (the current rates are shown on the website) Read what it covers....then try and think through, in practical terms, what it doesn't cover. That's why I believe that having the Comprehensive PSHCP coverage, plus IMSS, (ballpark $25/mo per person?), would cover just about all eventualities, including prescription drugs, for full-time residence in Mexico.
If, on the other hand, you intend to spend half the year back home in Canada, you're better off sticking with regular provincial Medicare coverage, (which, in BC, covers us for up to 180 days out of province.) You are correct....your PSHCP coverage as an employee only covers you for the first 40 days out of province. Since medical costs in Mexico are generally less than they are in Canada, our provincial Medicare covers most of the costs you might incur in Mexico during that 180 day period. For those of retirees who drive to Mexico, the real concern is getting sick or having an accident in the US on the way down, or on the way back. As a current employee, the PSHCP covers you on the way down, but not on the way back if the return trip is more than 40 days from the date you left Canada.
As a retiree.......whether I live in Canada or not.... I no longer get that 40 day coverage at all.

Incidentally, what's your opinion of the way development in Mazatlan is impacting the Golden Zone? We think the newest highrise condos, (being built by Canadians from BC, by the way), are a blight.


----------



## f3drivr

HolyMole said:


> Check out www.pshcptrust.ca/english/introduction/default.shtml
> As a federal public service retiree, you can purchase Comprehensive coverage under the PSHCP that covers you as a full-time resident of a foreign country....anywhere in the world. This has nothing to do with Emergency Travel Assistance or the 40 day business. Comprehensive offers 3 levels of coverage: $117/mo, $134 and $162 (the current rates are shown on the website) Read what it covers....then try and think through, in practical terms, what it doesn't cover. That's why I believe that having the Comprehensive PSHCP coverage, plus IMSS, (ballpark $25/mo per person?), would cover just about all eventualities, including prescription drugs, for full-time residence in Mexico.
> If, on the other hand, you intend to spend half the year back home in Canada, you're better off sticking with regular provincial Medicare coverage, (which, in BC, covers us for up to 180 days out of province.) You are correct....your PSHCP coverage as an employee only covers you for the first 40 days out of province. Since medical costs in Mexico are generally less than they are in Canada, our provincial Medicare covers most of the costs you might incur in Mexico during that 180 day period. For those of retirees who drive to Mexico, the real concern is getting sick or having an accident in the US on the way down, or on the way back. As a current employee, the PSHCP covers you on the way down, but not on the way back if the return trip is more than 40 days from the date you left Canada.
> As a retiree.......whether I live in Canada or not.... I no longer get that 40 day coverage at all.
> 
> Incidentally, what's your opinion of the way development in Mazatlan is impacting the Golden Zone? We think the newest highrise condos, (being built by Canadians from BC, by the way), are a blight.


That is interesting. I wasn't aware that PSHCP offered that type of coverage and the price is not bad considering that it's for a family. I could see problems coming up when trying to file claims.

The development in the Golden Zone doesn't bother me. If it continues, property values will go up and since we already own two properties there it could benefit us. Our condo is in the Golden Zone across the street from the Emporio and we have a lot in Sabalo Country right near the entrance to the El Cid Marina. The money that we earn renting out the condo when we are not there pays our expenses. We plan to sell it when we retire and use that money to build on the lot. I will sell my house in Canada and invest the money, then live on a combination of investment income and my pension which will be reduced since I plan to retire early at age 47. It will be interesting to see how many of those condo projects actually get completed with the economy the way it is. 

Which part of BC are you from? I am in Chilliwack.


----------



## HolyMole

*Filing Claims*



f3drivr said:


> That is interesting. I wasn't aware that PSHCP offered that type of coverage and the price is not bad considering that it's for a family. I could see problems coming up when trying to file claims.
> 
> The development in the Golden Zone doesn't bother me. If it continues, property values will go up and since we already own two properties there it could benefit us. Our condo is in the Golden Zone across the street from the Emporio and we have a lot in Sabalo Country right near the entrance to the El Cid Marina. The money that we earn renting out the condo when we are not there pays our expenses. We plan to sell it when we retire and use that money to build on the lot. I will sell my house in Canada and invest the money, then live on a combination of investment income and my pension which will be reduced since I plan to retire early at age 47. It will be interesting to see how many of those condo projects actually get completed with the economy the way it is.
> 
> Which part of BC are you from? I am in Chilliwack.


Aren't you fortunate to be considering retirement and you're not yet 47. How are you going to keep up any interest in your job until then?
(I ask because I took a 3 month trip to Mexico in early 2006 using accrued weeks of annual leave....and found it very difficult to get back in the swing of things at the office on my return. In fact, I said at the time that if I was a boss, I would never allow my staff to take 3 months off.)
We live in Vernon. I can be contacted off-line via e-mail at [email protected] 
If you've spent much time in Mazatlan, you must have been to The Saloon .


----------



## KelleyJames

*Oas*

Ir's my understanding that you cannot receive OAS as a non-resident. Does this apply if you maintain a 'residence' in Canada?


----------



## f3drivr

KelleyJames said:


> Ir's my understanding that you cannot receive OAS as a non-resident. Does this apply if you maintain a 'residence' in Canada?


 http://www.voyage.gc.ca/publications/pdf/retirement_abroad-en.pdf 

You can receive OAS but not GIS as a non-resident. If you continue to file tax returns as a resident then you could also apply for GIS. If you read the document you will see that they actually discourage people from applying for non-resident status, you would not be likely to ever have a problem with the Federal Government. The problem will be with health care, all provinces that I am aware require you to be present in the country for at least 6 months each year to be eligible for health care.


----------



## HolyMole

KelleyJames said:


> Ir's my understanding that you cannot receive OAS as a non-resident. Does this apply if you maintain a 'residence' in Canada?


f3drivr is correct: 
If you qualify, OAS (and CPP/QPP) are paid anywhere in the world, regardless where you reside. 
As far as the Guaranteed Income Supplement (GIS) is concerned, since it's based on low income vs Canadian expenses, it is not payable if you reside out of Canada.

I erred in an earlier post concerning Out of Province health coverage for Federal Public service retirees. We do have this coverage, for the first 40 days after leaving your home province ( or Canada).


----------



## nwtconner

We keep up our Canadian citizenship in order to keep our OHIP in place and as a rule we tend to never miss our annual income taxes.


----------



## f3drivr

nwtconner said:


> We keep up our Canadian citizenship in order to keep our OHIP in place and as a rule we tend to never miss our annual income taxes.


In BC you must by physically present in the province for at least 6 months in a calendar year to be eligible for coverage. I just looked up the rules for Ontario and it seems that they are more flexible than BC as they allow you to be absent from the province for up to 212 days each year and you can apply to get coverage for an extended absence. There is more information here: Ontario Ministry of Health and Long-Term Care - Public Information - Ontario Health Insurance Plan - Travelling Outside Canada

I suppose if you continue to file taxes as a resident of Ontario and maintain an address there they may never know how much time you are spending out of country but I would be careful about trying to claim out of country medical expenses if you are exceeding the 212 day limit or they may cut you off. I heard about some RVers from Alberta that got cut off for being out of the country for too long but I think they had been claiming expenses from outside of Canada.

As for Canadian citizenship, Canada taxes based on residency not citizenship like the US does so there would really be no reason to renounce citizenship. I have never heard of any Canadians who have done it.


----------



## nwtconner

what about ohip and how your defiance may affect that?


----------



## f3drivr

nwtconner said:


> what about ohip and how your defiance may affect that?


Could you please elaborate? I'm not quite sure what you are asking.


----------



## HolyMole

f3drivr said:


> In BC you must by physically present in the province for at least 6 months in a calendar year to be eligible for coverage. I just looked up the rules for Ontario and it seems that they are more flexible than BC as they allow you to be absent from the province for up to 212 days each year and you can apply to get coverage for an extended absence. There is more information here: Ontario Ministry of Health and Long-Term Care - Public Information - Ontario Health Insurance Plan - Travelling Outside Canada
> 
> I suppose if you continue to file taxes as a resident of Ontario and maintain an address there they may never know how much time you are spending out of country but I would be careful about trying to claim out of country medical expenses if you are exceeding the 212 day limit or they may cut you off. I heard about some RVers from Alberta that got cut off for being out of the country for too long but I think they had been claiming expenses from outside of Canada.
> 
> As for Canadian citizenship, Canada taxes based on residency not citizenship like the US does so there would really be no reason to renounce citizenship. I have never heard of any Canadians who have done it.


Thanks for that clarification on BC Medicare. I had thought out-of-province coverage was limited to a 180 consecutive day period, but the literature says "must be physically present in Canada at least six months in a calendar year and continue to maintain their home in B.C......."

B.C. also allows for an extended period of up to 12 months temporary absence from the province, but approval is limited to only once in 5 years for absences that exceed 6 months in a calendar year.

As far as renouncing Canadian citizenship......I'm not sure it can be done as a means to avoid paying Canadian income tax on all your world income, regardless of residency. Certainly, if one became a Mexican citizen but had income from any Canadian sources, (Old Age Security, Canada Pension Plan, etc.), that income would be taxed at 15% at source.
There was a short period during the mid-70's during which assuming US citizenship meant automatically losing one's Canadian citizenship, but that no longer exists. Becoming a citizen of another country now simply results in dual citizenship.


----------



## f3drivr

Hey Holymole, did you notice the exception for unlimited continuous eligibility for residents of Ontario who are doing Missionary Work? I wonder what kind of paperwork they need as proof of who is a missionary? They would be afraid to discriminate against any particular religion. Maybe we should become residents of Ontario and then do "Missionary work" in Mexico for the rest of our lives.


----------



## HolyMole

f3drivr said:


> Hey Holymole, did you notice the exception for unlimited continuous eligibility for residents of Ontario who are doing Missionary Work? I wonder what kind of paperwork they need as proof of who is a missionary? They would be afraid to discriminate against any particular religion. Maybe we should become residents of Ontario and then do "Missionary work" in Mexico for the rest of our lives.


Back during stalled contract negotiations as a low-paid Federal public servant, (and union activist), I wrote a letter, tongue firmly planted in cheek, to the Canadian Finance Minister, asking if, as a public servant, I could join a religious order, then swear a vow of perpetual poverty and thereby become exempt to income taxes.

Just to show how much consideration politicians give to correspondence from the great unwashed, the Minister replied by mail that she had forwarded my letter to the Minister of National Revenue for consideration. 

About two weeks later, I got a telephone call from Ottawa....someone in the Minister's office....who went over my request, then stated: "You're not really being serious, are you?" I didn't reply for about 10 long seconds, then had to fess up because I started to laugh. Looking back, I probably should have kept the process going to some kind of conclusion. I did, however, relate the story in a letter to our local newspaper, which was published.


----------

