Canadian moving to UAE - am I thinking about this correctly?

[canadianplainview]

I'm a Canadian citizen who has the opportunity to maintain my income and relocate anywhere in the world, my employer doesn't care where I live.

I'm investigating a serious life change to move to UAE (Dubai) in order to receive my income tax free.

I've been approved for the remote-work visa of 1 year in Dubai. I understand this is different than receiving a tax certificate from UAE, which I become eligible for after staying 180+ days in UAE, which I plan on pursuing.

If I have both, I understand that I can claim non-tax residency of Canada and will leave the prying clutches of the CRA. I won't be visiting Canada for more than 3-4 months a year.

- Are there other things I might consider?
- Something I'm afraid of is potential instability in the Middle East. Would I jeopardize my tax position if I sent my income to a Canadian bank account in my name after "being paid" in Dubai?
- After receiving my Tax Certificate from Dubai, what becomes the minimum stay length I need to maintain to hold on to the Tax Certificate?

Thanks!

 

[M4S]

I think the residence by investment with @Fred is a better way to approach it. I wouldn’t send my money back to Canada but rather keep it away from JT’s clutches.

 

[JackAlabama]

I'm a Canadian citizen who has the opportunity to maintain my income and relocate anywhere in the world, my employer doesn't care where I live.

I'm investigating a serious life change to move to UAE (Dubai) in order to receive my income tax free.

I've been approved for the remote-work visa of 1 year in Dubai. I understand this is different than receiving a tax certificate from UAE, which I become eligible for after staying 180+ days in UAE, which I plan on pursuing.

If I have both, I understand that I can claim non-tax residency of Canada and will leave the prying clutches of the CRA. I won't be visiting Canada for more than 3-4 months a year.

- Are there other things I might consider?
- Something I'm afraid of is potential instability in the Middle East. Would I jeopardize my tax position if I sent my income to a Canadian bank account in my name after "being paid" in Dubai?
- After receiving my Tax Certificate from Dubai, what becomes the minimum stay length I need to maintain to hold on to the Tax Certificate?

Thanks!

Yep, get the residency thru company setup with e.g. @Fred is a better way. If you are worried about banks, just keep your savings in stablecoins, bitcoin or some other cryptocurrency or try to setup offshore banking somewhere else according to your circumstances.

A few months per year for sure to get this magical document and ideally you have some substance like a rented or purchased home. But it is unlikely to help you much if you will go back in Canada and live there as a de-facto central point of your life. Then it is unlikely that any western gov is impressed by such a certificate and they will investigate where you actually really lived which is very easy to do once they got you on their radar.

 

[Konstanz]

I'm a Canadian citizen who has the opportunity to maintain my income and relocate anywhere in the world, my employer doesn't care where I live.

I'm investigating a serious life change to move to UAE (Dubai) in order to receive my income tax free.

I've been approved for the remote-work visa of 1 year in Dubai. I understand this is different than receiving a tax certificate from UAE, which I become eligible for after staying 180+ days in UAE, which I plan on pursuing.

If I have both, I understand that I can claim non-tax residency of Canada and will leave the prying clutches of the CRA. I won't be visiting Canada for more than 3-4 months a year.

- Are there other things I might consider?
- Something I'm afraid of is potential instability in the Middle East. Would I jeopardize my tax position if I sent my income to a Canadian bank account in my name after "being paid" in Dubai?
- After receiving my Tax Certificate from Dubai, what becomes the minimum stay length I need to maintain to hold on to the Tax Certificate?

Thanks!

To receive Certificate of Tax residence you have to reside physically in UAE 180+ days.
Also if you stay a lot in Canada and have ties (home, social life, wife etc) you will probably still remain canadian tax resident

 

[CaptK]

Remote visa is fine, you will get a tax certificate after 6 months but can apply for it after 3 months if you have utility bills and a residential tenancy agreement.
Not sure regarding exit tax situation but, You can travel in and out but use your UAE bank account for all your spending wherever you are until you get your tax certificate. As @Konstanz said you will need to close all membership and subscription services you use in Canada.

 

[carz]

Remote visa is fine, you will get a tax certificate after 6 months but can apply for it after 3 months if you have utility bills and a residential tenancy agreement.
Not sure regarding exit tax situation but, You can travel in and out but use your UAE bank account for all your spending wherever you are until you get your tax certificate. As @Konstanz said you will need to close all membership and subscription services you use in Canada.

How can you apply after 3 months please? I thought the TRC application is done online now and requires a report of residency, (or w/e they call it) detailing how many days you've actually been in the country, from immigration.

 

[CaptK]

They know all that information before you even start the application.
In my experience we have applied for a TRC after 3 months and have received it.
Going in and out of the country is fine but you do need to spend the majority of your time in the UAE until you get it.

There are other more convoluted ways of getting it and being out of the country but it's expensive.

Just depends on the circumstances.

 

[Larin]

I'm a Canadian citizen who has the opportunity to maintain my income and relocate anywhere in the world, my employer doesn't care where I live.

I'm investigating a serious life change to move to UAE (Dubai) in order to receive my income tax free.

I've been approved for the remote-work visa of 1 year in Dubai. I understand this is different than receiving a tax certificate from UAE, which I become eligible for after staying 180+ days in UAE, which I plan on pursuing.

If I have both, I understand that I can claim non-tax residency of Canada and will leave the prying clutches of the CRA. I won't be visiting Canada for more than 3-4 months a year.

- Are there other things I might consider?
- Something I'm afraid of is potential instability in the Middle East. Would I jeopardize my tax position if I sent my income to a Canadian bank account in my name after "being paid" in Dubai?
- After receiving my Tax Certificate from Dubai, what becomes the minimum stay length I need to maintain to hold on to the Tax Certificate?

Thanks!

Just to add to the above:
1) Canada has a departure tax: Leaving Canada (emigrants) - Canada.ca

2) The tax certificate will not help for two reasons: a) the DTA between Canada and UAE defines a UAE tax resident very narrowly: Convention Between the Government of Canada and the Government of the United Arab Emirates - Canada.ca (Article 4 (b)); b) your Canadian tax residency will be a matter of fact. I.e. do you maintain enough 'ties' to convince CRA (and if you challenge it, a tax court judge) that you are in fact a Canadian resident for tax purposes.

If were you (this is not a legal/tax/accounting advice), I would leave Canada, sever as many ties as possible (get rid of all property, move my wife/kids out of the country, close bank accounts, give up driver license, health card) and file as a non-resident and hope that CRA accepts it. If they do, you are in the clear and if they don't be prepared to demonstrate that you have actually left. (List of ties (non-exhaustive): Determining your residency status - Canada.ca)

*Not a tax expert*

 

[M4S]

Just to add to the above:
1) Canada has a departure tax: Leaving Canada (emigrants) - Canada.ca

2) The tax certificate will not help for two reasons: a) the DTA between Canada and UAE defines a UAE tax resident very narrowly: Convention Between the Government of Canada and the Government of the United Arab Emirates - Canada.ca (Article 4 (b)); b) your Canadian tax residency will be a matter of fact. I.e. do you maintain enough 'ties' to convince CRA (and if you challenge it, a tax court judge) that you are in fact a Canadian resident for tax purposes.

If were you (this is not a legal/tax/accounting advice), I would leave Canada, sever as many ties as possible (get rid of all property, move my wife/kids out of the country, close bank accounts, give up driver license, health card) and file as a non-resident and hope that CRA accepts it. If they do, you are in the clear and if they don't be prepared to demonstrate that you have actually left. (List of ties (non-exhaustive): Determining your residency status - Canada.ca)

*Not a tax expert*

I am no tax expert either but I believe you are exactly right. The Canada/UAE DTA is not much help if your are going this route. Everything I have looked at/people I have talked to says you need to LEAVE Canada and establish a residence and ties some where else.

 

[NoKYC]

Just to add to the above:
1) Canada has a departure tax: Leaving Canada (emigrants) - Canada.ca

2) The tax certificate will not help for two reasons: a) the DTA between Canada and UAE defines a UAE tax resident very narrowly: Convention Between the Government of Canada and the Government of the United Arab Emirates - Canada.ca (Article 4 (b)); b) your Canadian tax residency will be a matter of fact. I.e. do you maintain enough 'ties' to convince CRA (and if you challenge it, a tax court judge) that you are in fact a Canadian resident for tax purposes.

If were you (this is not a legal/tax/accounting advice), I would leave Canada, sever as many ties as possible (get rid of all property, move my wife/kids out of the country, close bank accounts, give up driver license, health card) and file as a non-resident and hope that CRA accepts it. If they do, you are in the clear and if they don't be prepared to demonstrate that you have actually left. (List of ties (non-exhaustive): Determining your residency status - Canada.ca)

*Not a tax expert*

100%. I'm a Canadian living in Dubai and I had to do all of the above to be "compliant" with the crazy tax system we have.

You could live in Dubai 10 years and still be consider a Canadian tax resident if they deem that you have ties or that you might return.

The first thing I learned from my tax advisor was that residency and tax residency are two complete different things.

 

[canadianplainview]

@NoKYC
How does your passport work? Do you have to revisit Canada to renew it?

 

[M4S]

You should be able to renew from any embassy.

 

[canadianplainview]

> or that you might return.
Wait, is this actually part of the consideration? Of course I might return. But not for many years!

 

[NoKYC]

> or that you might return.
Wait, is this actually part of the consideration? Of course I might return. But not for many years!

It's more or less what you still have in the country that determines this in their eyes.