Moving from the U.S. to Canada


What are the next steps and issues to consider:

  1. Consult a Canadian cross border tax specialist. There are a number of things that you need to consider before crossing the border relating to tax. There are serious tax incidents that occur when leaving the US, as well as steps to alleviate or improve your tax treatment upon arriving in Canada. Only an experienced cross border tax specialist can walk you through these.
  1. Consult an immigration specialist in advance. Not all questions are fiscal in nature. Arriving in Canada properly documented is essential.
  1. Do you have a cross border investment specialist? Determine what to do with your investments. Do you have a 401K. Is it with your current employer? Will you be changing employers. Should you roll over your 401K into an IRA? Do you have IRAs, SEPs, a Roth IRA? Determining a course of action and what solutions are possible with regards to these plans can prove to be very beneficial. There are strategies to improve your result that should be considered and put in place before you make the move. There are also many investments that you will need to avoid upon arriving in Canada while being a US citizen (It is not a question of tax residence). As a US citizen living in Canada, you will still have reporting and filing obligations in the US
  1. Will you be maintaining a property in the US, do you have a power of attorney for property management prepared in the state where the property is? Or will you be selling to finance your new home in Canada. What are the tax rules and the difference between the treatment in the US and in Canada.
  1. Where do you want to move to? Do you have any school age children? Have you thought of schooling for them.
  1. Are your parents US resident citizens? Are you beneficiaries of their last will and testaments? Are there any proposed changes to their final dispositions that they should be made aware of?
  1. Are you up to date with your tax fillings?
  1. Things you will need to do upon arriving:
  • Writing a new last will and testament, power of attorney, mandate in case of incapacity, living will.
  • Building your team of experts in Canada: Doctor (pediatrician), Lawyer, financial advisor (cross border) accountant (cross border), banking and credit.
  • Signing up for social security online services before you leave the US and maintain one US bank account to receive your SS payments.
  • Auto: Driving history and insurance in the US, prepare for vehicle importation.
  • Pets
  • Repeat prescriptions.

These are but a few of the many things to reflect upon long before you physically make the move. We at Patrimonia Wealth can assist you with these questions as well as identify the needed professionals to make your move easier and avoid some of the pitfalls.

Here are a few more resources to help you with your move: