Banking, Money and Taxes in Canada
Banking in Canada is sophisticated, safe and ranks as the one of the best banking systems in the world. Connecting to overseas bank accounts is common and paying for most goods with an overseas credit card is easy. International banks that have large operations in Canada include ING Bank, HSBC, and Citibank. Some international banks that operate in the UK such as HSBC can assist in making an easy transition to a new account in Canada from a prior account held abroad.
Opening a new bank account in Canada is straightforward but comes with some frustrations. Preferably, banks require a passport, letter of employment and a rental agreement for expats to open an account. Upon residency credit references from abroad are newly void and don't account for credit history from overseas. With no credit rating it can be difficult to obtain a desired credit limit and overdraft privileges. The five largest Canadian banks are Royal Bank of Canada, Toronto Dominion Bank, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce. These all offer easy access to accounts through a huge number of ATMs and Internet banking.
Taxation in Canada can be confusing and, coupled with taxation laws in a home country, can be downright unintelligible. To avoid paying taxes in both Canada and abroad, especially the UK, it's recommended to hire an accountant specialising in expat taxes. In general Canadians pay a high income tax although these vary greatly between provinces. Canadians are taxed on their worldwide income, which is eligible for provincial and federal taxes if an individual is in the country for 183 days, regularly resides in Canada, or has established residential ties in Canada.
Opening a new bank account in Canada is straightforward but comes with some frustrations. Preferably, banks require a passport, letter of employment and a rental agreement for expats to open an account. Upon residency credit references from abroad are newly void and don't account for credit history from overseas. With no credit rating it can be difficult to obtain a desired credit limit and overdraft privileges. The five largest Canadian banks are Royal Bank of Canada, Toronto Dominion Bank, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce. These all offer easy access to accounts through a huge number of ATMs and Internet banking.
Taxation in Canada can be confusing and, coupled with taxation laws in a home country, can be downright unintelligible. To avoid paying taxes in both Canada and abroad, especially the UK, it's recommended to hire an accountant specialising in expat taxes. In general Canadians pay a high income tax although these vary greatly between provinces. Canadians are taxed on their worldwide income, which is eligible for provincial and federal taxes if an individual is in the country for 183 days, regularly resides in Canada, or has established residential ties in Canada.
