Here are a few things to consider about your budget and retirement savings if you plan to take your retirement to another country:
If you plan to buy property in a foreign country, find out about property taxes and other taxes for the area. You may also have to report to the Canada Revenue Agency (CRA) about your foreign holdings, depending on where you decide to live and your Canadian residency status. For more information, visit the CRA website at http://www.cra-arc.gc.ca/international/ or call 1-800-267-6999.
Cost of living
Calculate all living costs you might encounter in your chosen country, not just the cost of buying or renting property. A house in a certain country may be cheaper than you’re used to in Canada, but things like groceries and gas may not be. Don’t forget to factor in moving costs and flights home to visit friends and family, if need be.
Keep in mind that your provincial or territorial health plan will only cover part, if any, of the cost of health care outside of Canada. And if you live away for a certain length of time – usually six to eight months – medical costs will no longer be covered at all. This means you’ll need to account for supplemental or replacement health insurance costs when you think about your budget while living outside Canada.
Have you considered working part-time to supplement your retirement income? Ensure there are opportunities for your job of choice in the country you’re considering. What are the visa requirements to legally work in that country? And don’t forget to factor into your budget travelling to and from work.