Customized strategies for business owners and entrepreneurs
Moving Across the Border
Americans in Canada
Americans Moving to Canada & Returning Canadians
There are a number of issues that American citizens face when they move to Canada, or for Canadians coming home after working in the United States.
One of the most common surprises is that your retirement accounts will be orphaned when you move to Canada. Financial institutions must be registered where their clients are domiciled. In most cases, you will find your US retirement accounts, such as your IRA, will be frozen once you move. In some cases, your financial institution may even threaten to close your accounts and send your funds, after deducting for taxes and early withdrawal penalties.
The choice of investment products is also complicated. Many of the most popular Canadian investment vehicles are effectively “off limits” for American tax filers as they require onerous and expensive additional tax filings.
We understand the challenges that the American citizen or tax-filer faces and have developed connections and capabilities to fully support you. Importantly, as we are able to work with you while you are still resident in the US, we can plan to avoid the most difficult and complicated pitfalls even before you move.
For a more comprehensive guide to your transition to Canada, we encourage you to review the below attachment. Please do not hesitate to contact us if you have any questions.
Canadians in the USA
CANADIANS MOVING to the U.S.
Whether one moves for a new job or business opportunity, to be with family or as snowbirds looking to enjoy sunnier weather, most underestimate the complexities associated with moving to the United States from Canada.
While our cultures are very similar, our legal, tax, investment and compliance regimes are considerably different. While our phones may work in both countries and we often watch the same TV shows, our key institutions rarely seem to talk to each other.
Canadians often find themselves caught in a web of complexity as they navigate confusing immigration regulations, new taxation, investment structures, health care networks and a financial system that treats them as a stranger.
Even conducting basic financial transactions such as Canadians buying or selling US real estate requires careful planning and expert advice.
We can help you make a smooth transition to the US by creating a tailored and comprehensive cross-border financial plan, and then continue working with you while you are in the States.
Employees crossing the border are often following career-growth opportunities. Executives and key employees of large or growing corporations are often offered or demanded to travel across borders, often relocating themselves and their families for several years. The move for work across the border has implications beyond simply moving to a new residence.
The main issues arise from the difference in how Canadians and Americans are taxed. While both are taxed on their worldwide income, Canadian citizens are taxed based on their residency while US citizens are taxed based on their citizenship. Thus, while Canadians can follow a process to stop paying taxes when they leave Canada, American citizens are taxed no matter where they live. Further, while there is a tax treaty between our two countries, there are also situations where individuals may be subject to double taxation and other unwanted cross-border tax traps.
Canadians relocating to the US for work, and Americans moving to work in Canada should plan their cross-border move in advance to avoid the most common pitfalls and also to capitalize on opportunities that can result from such a change.