Canadian Foreign Tax Tax Guide: “If I work abroad, where do I pay taxes?” – Other questions answered
And don’t forget: Canadian Medicare will eventually expire for expats. According to the CRA, if you are injured or sick, your provincial health plan may cover certain medical expenses you have abroad, but you must pay those in advance. After six to eight months, your coverage will be invalid.
“I’ve been talking to people about health insurance, disability insurance and life insurance. In Canada, disability insurance is usually part of your employment program, but for many people working overseas, that’s not the case, so put it in your budget,” Hiscock said. “Look for a broker who can assist with foreign insurance.”
Establish an emergency fund to cover three to six months’ fees. This is recommended for everyone, including Canadian residents, but for expats at higher risk, it’s even more. “And, if you don’t have a job, reserve a significant contingency fund based on your situation,” Hiscock advises.
Talk to other expats
The more information and lessons you collect from other expats, the better you develop, says Judith Asher, a Montreal-born executive and leadership coach. When setting up your own consulting firm, language barriers and lack of understanding of how the tax system in Italy works.
“When I first moved to Italy, there was less information and advice from other foreigners on solving financial problems online, because of its infamous bureaucratic and often changing financial rules,” she recalls.
“I couldn’t understand the official government website myself until my Italian language skills improved and had to rely on others to explain the rules to me, which made me feel frustrated and powerless.”
Asher also mistakenly believes that when talking to a local accountant, she will get options and financial advice in her best interest.
“I wish I knew to ask the question of inquiry: ‘What else can I do to reduce the tax burden?’,’, what other deductions can I deduct, claiming that we are not talking about we are not talking about?’,’, how can I open a company/better/benefit freelancers in terms of tax and functional burden,’, after I made these payments,’,’,’,’,’,’,’, she said: ‘What kind of documentation do I need to keep in order to claim the deduction? ”
