Leaving Canada to become a Digital Nomad

[esqart]

Goal: Leave Canada and become a Digital Nomad. Live in 12 different countries for 1 month each.

If you lived in another country before living in Canada and you leave Canada to resettle in that country, you usually become a non-resident of Canada on the date you leave Canada. This applies even if your spouse or common-law partner temporarily stays in Canada to dispose of your home.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt

Significant residential ties to Canada include

• a home in Canada
• a spouse or common-law partner in Canada
• dependants in Canada

Secondary residential ties that may be relevant include:

• personal property in Canada, such as a car or furniture
• social ties in Canada, such as memberships in Canadian recreational or religious organizations
• economic ties in Canada, such as Canadian bank accounts or credit cards
• a Canadian driver's licence
• a Canadian passport
• health insurance with a Canadian province or territory

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

----
I want to keep my Canadian passport, driver's license, bank account and credit card. Everything else I want to cut all my ties with.
* Passport & License, are valid globally not just in Canada and I intent to use them.
* Bank & Credit Card, will be used to receive my tax returns. Also all my current online subscriptions like Youtube is connected to my cards and I can't really close it until I have completely re established a new financial system. But unless CRA minds, I am of hoping to keep these forever.

I have 2 options here:
1. Establish a tax residency in a digital nomad tax friendly country
2. Establish tax residency again in my previous country. And then move to another country from there.

I think my case seems reasonable where I can directly jump into No1. However I don't know how picky CRA is about this stuff.

Questions:
1. Do you guys know any threads or stories from people who are experienced about this topic?
2. Should I go for option 1 or 2?

 

[Canada2020eh]

Goal: Leave Canada and become a Digital Nomad. Live in 12 different countries for 1 month each.


https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt




https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

----
I want to keep my Canadian passport, driver's license, bank account and credit card. Everything else I want to cut all my ties with.
* Passport & License, are valid globally not just in Canada and I intent to use them.
* Bank & Credit Card, will be used to receive my tax returns. Also all my current online subscriptions like Youtube is connected to my cards and I can't really close it until I have completely re established a new financial system. But unless CRA minds, I am of hoping to keep these forever.

I have 2 options here:
1. Establish a tax residency in a digital nomad tax friendly country
2. Establish tax residency again in my previous country. And then move to another country from there.

I think my case seems reasonable where I can directly jump into No1. However I don't know how picky CRA is about this stuff.

Questions:
1. Do you guys know any threads or stories from people who are experienced about this topic?
2. Should I go for option 1 or 2?

It seems you didn't read the link you posted very much. It says, establishing a permanent residence in another country, which you don't plan on doing as you are staying in any given country for about a month. Severing residential ties with Canada, which you don't plan on doing if keeping drivers licence, credit cards etc.

So having said all that, what is you're question, are you trying to avoid paying taxes in Canada? From the plan you say, you aren't severing your ties to Canada. You will still have to pay taxes to Canada on any worldwide income. You never have to give up your PP but the rest you do to become a non-resident for tax purposes. Where is your paycheck being deposited?

Unless you sever your ties and file the appropriate paperwork with CRA to become a non resident for tax purposes and establish a permanent residence in your previous or another country you still have to pay taxes here.

 

[Copingwithlife]

Goal: Leave Canada and become a Digital Nomad. Live in 12 different countries for 1 month each.


https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt




https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

----
I want to keep my Canadian passport, driver's license, bank account and credit card. Everything else I want to cut all my ties with.
* Passport & License, are valid globally not just in Canada and I intent to use them.
* Bank & Credit Card, will be used to receive my tax returns. Also all my current online subscriptions like Youtube is connected to my cards and I can't really close it until I have completely re established a new financial system. But unless CRA minds, I am of hoping to keep these forever.

I have 2 options here:
1. Establish a tax residency in a digital nomad tax friendly country
2. Establish tax residency again in my previous country. And then move to another country from there.

I think my case seems reasonable where I can directly jump into No1. However I don't know how picky CRA is about this stuff.

Questions:
1. Do you guys know any threads or stories from people who are experienced about this topic?
2. Should I go for option 1 or 2?

What in gods name are you trying to do ?
Doesn’t make sense

 

[steaky]

What in gods name are you trying to do ?
Doesn’t make sense

Maybe OP want to travel around the World.

 

[Copingwithlife]

Maybe OP want to travel around the World.

Maybe . Without any ties to Canada , but maintaining ties at the same time

 

[esqart]

No person can 100% cut ties with the country they are a citizen of. I still have strong ties with my original country, even though I've lived in Canada for the last half decade.

 

[YVR123]

No person can 100% cut ties with the country they are a citizen of. I still have strong ties with my original country, even though I've lived in Canada for the last half decade.

Yes. you can. I have no tie to my home counrty. "half decade" is only 5 years.

 

[prash42]

Hard to say if option 2 will work without knowing if your home country makes it easy. If you're committed to the idea, get professional advice - some like Nomad Capitalist have a lot of free resources to get you started.

Goal: Leave Canada and become a Digital Nomad. Live in 12 different countries for 1 month each.


https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt




https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

----
I want to keep my Canadian passport, driver's license, bank account and credit card. Everything else I want to cut all my ties with.
* Passport & License, are valid globally not just in Canada and I intent to use them.
* Bank & Credit Card, will be used to receive my tax returns. Also all my current online subscriptions like Youtube is connected to my cards and I can't really close it until I have completely re established a new financial system. But unless CRA minds, I am of hoping to keep these forever.

I have 2 options here:
1. Establish a tax residency in a digital nomad tax friendly country
2. Establish tax residency again in my previous country. And then move to another country from there.

I think my case seems reasonable where I can directly jump into No1. However I don't know how picky CRA is about this stuff.

Questions:
1. Do you guys know any threads or stories from people who are experienced about this topic?
2. Should I go for option 1 or 2?

 

[hamgha]

Goal: Leave Canada and become a Digital Nomad. Live in 12 different countries for 1 month each.


https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt




https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

----
I want to keep my Canadian passport, driver's license, bank account and credit card. Everything else I want to cut all my ties with.
* Passport & License, are valid globally not just in Canada and I intent to use them.
* Bank & Credit Card, will be used to receive my tax returns. Also all my current online subscriptions like Youtube is connected to my cards and I can't really close it until I have completely re established a new financial system. But unless CRA minds, I am of hoping to keep these forever.

I have 2 options here:
1. Establish a tax residency in a digital nomad tax friendly country
2. Establish tax residency again in my previous country. And then move to another country from there.

I think my case seems reasonable where I can directly jump into No1. However I don't know how picky CRA is about this stuff.

Questions:
1. Do you guys know any threads or stories from people who are experienced about this topic?
2. Should I go for option 1 or 2?

I personally know a lot of people in this situation. You still need to be a tax resident somewhere. The problem is how will you become a tax resident of those other countries as for most places you need to live there for 180 days

 

[canuck78]

It seems you didn't read the link you posted very much. It says, establishing a permanent residence in another country, which you don't plan on doing as you are staying in any given country for about a month. Severing residential ties with Canada, which you don't plan on doing if keeping drivers licence, credit cards etc.

So having said all that, what is you're question, are you trying to avoid paying taxes in Canada? From the plan you say, you aren't severing your ties to Canada. You will still have to pay taxes to Canada on any worldwide income. You never have to give up your PP but the rest you do to become a non-resident for tax purposes. Where is your paycheck being deposited?

Unless you sever your ties and file the appropriate paperwork with CRA to become a non resident for tax purposes and establish a permanent residence in your previous or another country you still have to pay taxes here.

If not a tax resident don’t have to pay taxes on your worldwide income like US citizens

 

[canuck78]

Goal: Leave Canada and become a Digital Nomad. Live in 12 different countries for 1 month each.


https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt




https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

----
I want to keep my Canadian passport, driver's license, bank account and credit card. Everything else I want to cut all my ties with.
* Passport & License, are valid globally not just in Canada and I intent to use them.
* Bank & Credit Card, will be used to receive my tax returns. Also all my current online subscriptions like Youtube is connected to my cards and I can't really close it until I have completely re established a new financial system. But unless CRA minds, I am of hoping to keep these forever.

I have 2 options here:
1. Establish a tax residency in a digital nomad tax friendly country
2. Establish tax residency again in my previous country. And then move to another country from there.

I think my case seems reasonable where I can directly jump into No1. However I don't know how picky CRA is about this stuff.

Questions:
1. Do you guys know any threads or stories from people who are experienced about this topic?
2. Should I go for option 1 or 2?

You are required to notify CRA when you leave Canada. It will also make your life easier to do so because you risk having to repay any benefit you incorrectly receive with penalties. You can ask CRA to determine your tax residency status for you. They are the only ones who can guarantee your tax residency status. You also have to notify your provincial health agency that you are leaving Canada. You have to research what is required for residency status in your previous home country.

 

[mikeg01]

This is a very good question. Thanks for asking. Frankly, the main problem I see (and also have) is the address! Canada - and many countries seem to always want a 'permanent address'. But what if you have a non-permanent style of life? That is your right after all. If you move around a lot, what address can you use for 1. CRA tax filing? 2. bank address 3. brokerage account address 4. mail 5. driver license (well until it expires after which you won't have it)

If you don't plan to maintain an apartment here while away it seems a little tricky. Sure you can run-off everything until it expires and also just use the last address since often nobody checks, especially if you don't receive mail. But it can get awkward if you need to put a real address on a tax return.

My suggestion is to first determine if you want to be a tax resident of Canada or not. If not, then you MUST become a tax resident of another country. The reason I say this is because I've read various opinion and court cases and it seems that not becoming a resident of another country officially AND having even a minimal tie to Canada they will consider you a Canadian resident (but not a provincial resident!). Even if you use a foreign address but you aren't an official resident, I doubt Canada will somehow call the other country to warn them that you are there and if you had declared yourself resident there. So basically, I see a high risk in this case that even with a few small ties like a passport/bank account/dl that they will consider you Canadian resident, even if you put a bunch of different addresses or something.

If you do want to stay a Canadian resident, I think the easiest is to have a Canadian address somehow for official use only. You don't have to be there. But how to get this address I don't know if you can use a virtual mailing address service. When you go to change it at your bank or something they might ask for a utility bill! What do you do then? If you say you don't have one and are in country XYZ, they will ask, are you a non-resident? If you say, no, I'm just a tourist, then I have no idea what happens! It looks strange to have foreign address temporarily every few months.

If anyone knows more info on this I'd be interested to know as well.