If I live in Mexico, do I still have to file income taxes for Canada?

To answer this question, it is important first to figure out if you are considered to be a resident or a non-resident of Canada for tax purposes – the Revenue Canada website has more information on this.  Non-residents of Canada do not have to pay Canadian taxes if they are not earning income from Canadian sources.  

 

If you earn income in Mexico, you pay Mexican taxes. If you are earning income from Canada and Mexico at the same time,...

To answer this question, it is important first to figure out if you are considered to be a resident or a non-resident of Canada for tax purposes – the Revenue Canada website has more information on this.  Non-residents of Canada do not have to pay Canadian taxes if they are not earning income from Canadian sources.  

 

If you earn income in Mexico, you pay Mexican taxes. If you are earning income from Canada and Mexico at the same time, you have to file income tax returns in both countries but there is a tax treaty between Canada and Mexico so that you don’t end up being double taxed.  

 

(Connaught Building, home of the The Canada Revenue Agency or Agence du revenu du Canada, pictured.)

If you live full time in Mexico, you don’t have to file your income taxes for Canada, although it’s better if you do keep paying your taxes in Canada. I would recommend filing your income taxes in Canada once a year just like we do.

 

If you’re a Canadian living and working full time in Mexico, you must pay you Mexican income taxes, and since you are paying your Mexican income taxes, you don’t have to pay your income taxes in Canada....

If you live full time in Mexico, you don’t have to file your income taxes for Canada, although it’s better if you do keep paying your taxes in Canada. I would recommend filing your income taxes in Canada once a year just like we do.

 

If you’re a Canadian living and working full time in Mexico, you must pay you Mexican income taxes, and since you are paying your Mexican income taxes, you don’t have to pay your income taxes in Canada. Income tax is only paid in one place.

 

On the other hand, if you’re getting your pension in Canada and you live in Mexico, the government takes out a portion of the pension so you don’t have to pay your income taxes anymore.

 

 

A lot of Canadians living in Mexico would rather just file the income tax and get no income. People also need to know that they can’t just not file their income taxes and pretend nothing happened. For them, you may not be living in Canada anymore, but you must be on the file.  

 

(Petroglyphs, Mexico, pictured.)