As a Canadian citizen with Canadian passport, you can stay abroad for as long as you'd like, and back to Canada whenever you want.
I was going to write a whole story about that but then erased it, assuming you did your research.
I shouldn't have erased it . Taxes are always confusing
Wow thank you ! I did a little research but I was super confused lolI was going to write a whole story about that but then erased it, assuming you did your research.
You pay taxes where you have your fiscal residency.
Fiscal residency is defined in Canada (and in most other countries) as where you are for at least 183 days and having your main economic ties there.
Two main scenarios will emerge according to this.
1/If you spend 183 days or more in Canada during the Canadian fiscal year (i.e January to December), you will pay your taxes in Canada, as you'll be a factual resident of Canada for tax purposes. You therefore pay all your taxes in Canada, from inside and outside sources. From a tax perspective, it's like if you never left Canada. This is most likely the scenario that applies to you.
2/That being said, if you're spending more than 6 months abroad but still have significant residential ties in Canada, you'll be considered a deemed non-resident of Canada. You'll declare and pay taxes on all Canadian sources only. I don't think this applies to you, as you don't intend to routinely and normally live outside Canada. Meaning you won't leave your residential ties (Home, Family, Lease, Car, Job, etc...). You're just spending a long time abroad.
Whatever it is, Canada has a Double Taxation Treaties (DTA) with many countries around the world, mainly for Canadian citizens who spend a lot of time in that partner country. This treaty allows you to avoid double taxation, meaning you wouldn't have to pay taxes in both countries. What that means in practice is that if you're paying taxes on an income or property in Canada, you won't pay it in the other country (if it's signatory of the DTA agreement with Canada), and vice versa.
Bottom line, if you spend more that 183 days abroad during the fiscal year, your Canadian income will be taxed in Canada, and an income (or asset) in the other country will be taxable in that country.
If you spend less than 183 days abroad, you pay all your taxes in Canada as if you never left, unless you're already paying taxes on an asset in the other country and Canada has a DTA with the country.
Hope I cleared it up a bit.
My friend has a company in my home country. We are thinking to do something together. But thank you
Yes, if you have a proper address in Canada with its own lease and you pay rent and bills, that constitutes strong residential ties in Canada. That makes you a Canada resident for tax purposes.
Spot on!!I was going to write a whole story about that but then erased it, assuming you did your research.
You pay taxes where you have your fiscal residency.
Fiscal residency is defined in Canada (and in most other countries) as where you are for at least 183 days and having your main economic ties there.
Two main scenarios will emerge according to this.
1/If you spend 183 days or more in Canada during the Canadian fiscal year (i.e January to December), you will pay your taxes in Canada, as you'll be a factual resident of Canada for tax purposes. You therefore pay all your taxes in Canada, from inside and outside sources. From a tax perspective, it's like if you never left Canada. This is most likely the scenario that applies to you.
2/That being said, if you're spending more than 6 months abroad but still have significant residential ties in Canada, you'll be considered a deemed non-resident of Canada. You'll declare and pay taxes on all Canadian sources only. I don't think this applies to you, as you don't intend to routinely and normally live outside Canada. Meaning you won't leave your residential ties (Home, Family, Lease, Car, Job, etc...). You're just spending a long time abroad.
Whatever it is, Canada has a Double Taxation Treaties (DTA) with many countries around the world, mainly for Canadian citizens who spend a lot of time in that partner country. This treaty allows you to avoid double taxation, meaning you wouldn't have to pay taxes in both countries. What that means in practice is that if you're paying taxes on an income or property in Canada, you won't pay it in the other country (if it's signatory of the DTA agreement with Canada), and vice versa.
Bottom line, if you spend more that 183 days abroad during the fiscal year, your Canadian income will be taxed in Canada, and an income (or asset) in the other country will be taxable in that country.
If you spend less than 183 days abroad, you pay all your taxes in Canada as if you never left, unless you're already paying taxes on an asset in the other country and Canada has a DTA with the country.
Hope I cleared it up a bit.
Thank you so much ! I might have more questions! I live in an apartment so can I just change my address to my friend's address?
