Quote from Bootsie:
Now that you've "settled in" what would you say the future holds insofar as earning income... particularly trading and how you're going to pay your taxes. This affects me directly.
Could you pass on a little info as to what broker you've decided on (if there was indeed a change), your platform etc. and any issue you've had w.r.t. getting local banking acct's set up. Will you file a return (4% was mentioned... somewhere?). I find this to be the next hurdle based upon your email in the Bahamas thread. My wife and I have considered the same move due to the fact we're in the same tax bracket (the highest here in Ontario) - I wonder aloud... what would it take for her to set up a dental practice in Bahamas - if indeed she could - and what would the tax advantage be for her/us.
I guess buying property is the best way to go as far as "establishing" residency. Probably a good thing that you've applied for residency status. (Can you tell customs that you're going to be staying "on holiday" for 1 month, 6 months, 2 years etc?)
OK, I will try to address some of these points. My attitude is that I no longer live in Canada, and will not be returning to Canada. I have no assets of any kind in canada, and no ties to canada. They have all been cut. I rent an residence full time in Bahamas, have cut up my health card and returned it, and have private medical insurance. I have no ties to Canada, and therefore I feel I have no obligation to file a tax form with the Canadian government.
They could challenge me on that if they chose to do so, but I would have an extremely strong case to prove I am non-resident because I researched it extensively before moving. Do not get suckered into filling out that Canadian government form for people leaving the country, you are not legally required to inform the government you are leaving. This advice came from a lawyer of someone I know. That form can only be used against you, it cannot help you. They try to trap you into making statements that they can later use against you that would indicate you are still resident of Canada. You don't have to fill out the form, so don't do it.
I use the same broker as before, I use Ffasttrade out of Chicago and I recommend them to anyone.
Getting local bank accounts in Bahamas is VERY difficult. And even if you get it, you will be extremely restricted. You have to tell them in advance every time you want to deposit money, they are very strict in trying to prevent money laundering.
I didn't even bother getting a Bahamas bank account, its too much hassle. I use my American bank accounts based out of Miami. I suggest you do the same thing. Get a US funds bank account from a US bank in the USA, and use that. It might be tough to get a Florida bank account if you do not have a Florida address though, but its not impossible. Another option is to open your account just across the border in Michigan, NY state, etc while you are still living in canada. Then change the address on the account once you move to Bahamas. Make sure the bank has branches in Florida though unless you want to visit a local branch.
Make sure the US bank is willing to offer you a credit card, at least a pre-paid type of pseudo credit card. You will want to cancel your Canadian credit card, and replace it with a foreign one. But you won't get one from the bahamas, you need to get one from the USA. Look into this well in advance, it is a tricky issue, especially if you have no mailing address in the USA.
Take my word for it, you don't want a Bahamian bank account, its a huge hassle to open and operate. And everything in bahamas operates in US dollars anyway, its on par.
Your wife would have problems opening a dental practice, but its not impossible. Bahamas fiercly protects Bahamian jobs. You have to have skills that cannot be supplied by a Bahamian, and then only after the job has been advertised for locally and not filled. Work permits for foreigners cost $14,000 per year. I don't know what the story is with setting up your own practice.
Nothing is impossible, money talks, if you are making an investment in Bahamas and creating a job(s) for bahamians, they might let her open a practice. You would need to talk to a Bahamian lawyer, preferably one well connected with politicians. I know of one who is very well connected, I can tell you who he is if you want to know, but he charges more than others charge. But I guess you pay for the people he knows.
Buying property worth $500,000+ is the best and fastest way to get residency. Some of it can be financed. But its actually a $500,000 INVESTMENT, it doesn't all have to be in a house. An investment of $300,000 in a house and $200,000 in a Bahamian business would qualify as a $500,000 investment for residency purposes. Be aware though that many businesses require you have a Bahamian partner.
When entering Bahamas, you tell customs you are "on holiday" if you do not have residency status. NEVER tell them you are working or on business, even if you consider trading to be working.
Technically the maximum stay for a Canadian is 3 weeks I think, but I have already told them once I would be staying fopr 4 weeks and they didn't say anything, it wasn't an issue. An American can stay for 8 months at a time, but not a Canadian, not unless you have residency.
So you go there, tell them you are staying a month, then take the ferry to Lauderdale for a weekend holiday, then come back for another month, etc. You don't want to stay there all the time anyway or you'll get island fever, you'll want to visit the USA once in awhile.
OK, I hope this answers some questions.
