I get asked by expats for different platforms they can use wherever they are in the world. Most of the time you can use big platforms such as Saxo and Novia. There are occasional limitations due to geography but the one key offering for most expat platforms is that they are portable!
If you have any questions, please contact me using the button at the bottom of the page!
Investments platforms Canadian expats can use:
- Canadian investment firms: Many Canadian investment firms offer services for expats, including online brokerage accounts and investment management services. Examples include RBC Direct Investing, TD Direct Investing, and BMO InvestorLine.
- International investment firms: There are also many international investment firms that Canadian expats can use to invest in global markets. Examples include Charles Schwab, Interactive Brokers, and Saxo Bank.
- Robo-advisors: Robo-advisors are online investment platforms that use algorithms to manage portfolios for investors. Some robo-advisors, such as Wealthsimple, have services specifically designed for Canadian expats.
- Cryptocurrency exchanges: If you’re interested in investing in cryptocurrencies like Bitcoin or Ethereum, there are several cryptocurrency exchanges that Canadian expats can use, including Coinbase and Binance.
What are some of the considerations of Canadian expats and investing from a tax perspective?
As a Canadian expat, there are several tax considerations you should keep in mind when investing. Here are a few:
- Tax residency: Even if you’re living outside of Canada, you may still be considered a tax resident of Canada, depending on your individual circumstances. This means you may be subject to Canadian tax laws, including on any investment income earned.
- Tax treaties: Canada has tax treaties with many countries, which can affect how investment income is taxed. These treaties can also provide relief from double taxation, where you may be taxed on the same income in both Canada and your country of residence.
- Foreign taxes: You may also be subject to taxes in your country of residence on investment income earned there. In some cases, you may be able to claim a foreign tax credit on your Canadian tax return to offset these taxes.
- Retirement savings: If you have retirement savings in Canada, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), these accounts may have different tax implications when you’re living outside of Canada.
- Reporting requirements: As a Canadian expat, you may have additional reporting requirements, such as reporting foreign assets over a certain threshold or filing a separate tax return in your country of residence.
It’s important to consult with a tax professional who is familiar with the tax laws in both Canada and your country of residence to ensure that you’re complying with all tax obligations and taking advantage of any available tax benefits.
Can Canadians open up Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA) as an expat?
As a Canadian expat, you may be able to open and contribute to a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), depending on your individual circumstances. However, there are some rules and considerations to keep in mind.
RRSPs:
- Contribution limits: Your RRSP contribution limit is based on your previous year’s earned income, up to a maximum amount set by the Canada Revenue Agency (CRA). If you’re not earning income in Canada, your contribution limit may be limited or reduced.
- Deductibility: You may be able to deduct your RRSP contributions from your Canadian taxable income, which can reduce your tax liability. However, you may not be able to claim the full deduction if you’re not earning income in Canada.
- Taxation: When you withdraw funds from your RRSP, the amount will be subject to Canadian tax. Depending on the tax laws in your country of residence, you may also be subject to tax there.
TFSA:
- Contribution limits: Your TFSA contribution limit is set by the CRA and is not based on your income. However, if you’re not a resident of Canada for tax purposes, your contribution room may be limited.
- Tax-free growth: Unlike RRSPs, you won’t receive a tax deduction for your TFSA contributions. However, any investment income earned within the account is tax-free, and you won’t be taxed on withdrawals.
- Reporting requirements: As a Canadian expat, you may have reporting requirements for your TFSA in your country of residence. You should consult with a tax professional in your country of residence to ensure that you’re complying with all applicable tax laws.
How do you open up an RRSP as a Canadian expat?
As a Canadian expat, you can open a Registered Retirement Savings Plan (RRSP) through a Canadian financial institution, such as a bank or investment firm. Here are the general steps to open an RRSP:
- Choose a financial institution: Research and compare different financial institutions that offer RRSPs. Consider factors such as fees, investment options, and customer service.
- Gather necessary documents: You’ll typically need to provide proof of identity and address, as well as your Social Insurance Number (SIN).
- Fill out the application: Once you’ve chosen a financial institution, you’ll need to fill out an application to open an RRSP account. You may be able to do this online or by visiting a branch.
- Choose your investments: Once your account is set up, you’ll need to decide how to invest your contributions. Many financial institutions offer a range of investment options, such as mutual funds, stocks, and bonds.
- Make contributions: You can make contributions to your RRSP throughout the year, up to your contribution limit. You can do this through automatic contributions or by making lump-sum contributions.
It’s important to keep in mind that as a Canadian expat, your RRSP contributions may be subject to certain limitations or restrictions, depending on your individual circumstances. For example, if you’re not earning income in Canada, your contribution limit may be limited or reduced. It’s a good idea to consult with a financial advisor or tax professional who is familiar with the regulations and tax implications of investing as a Canadian expat before opening an RRSP.
Conclusion
As always it depends on your situation, this is not personal financial advice because there are so many other variables which may influence the route that you take.
Understand what routes you have and how they might be impacted by the investment vehicles out there, if you need any support, please contact me.
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