HI Jack! Thanks so much. For the questrade account it depends what type of account you’re trying to open up. An RSP is a registered retirement savings account which is a tax deferral vehicle, these are usually contributed to through your employer as it provides tax relief at source. If you have money that you’ve already paid income tax on, then a tax-free savings account is what you’ll be looking for. Of course, I’m assuming you’re in Canada if you’re looking for these. If not, there are cross-border tax implications with a TFSA that you’ll need to check up on.

Regarding the opening of a Questrade account ‘self-directed and standard individual’, is it the TFSA or RSP?

Your knowledge and energy is refreshing on this blog!

Thanks

Hi Rob, Way to go on the big decision to uproot and head over. It’s probably best to get in touch with some cross border tax specialists for your specific situation, maybe the guys at etsi.ie will be helpful in general guidance. Some things you may consider. I believe you could set up an RRSP right away and using a self-directed account in questrade to keep fees down if you were comfortable with that (http://www.questrade.com/?refid=5c7aad240e2f7 – affiliate link) – as far as I know this remains tax free until withdrawal even if you return to Ireland. For the TFSA, I think you begin accumulating contribution room as soon as you are resident for tax purposes whether you open one or not. If you plan on returning to Ireland a TFSA may be more hassle than it’s worth as you will need to file and pay taxes on gains as it is not considered tax free here, so you will not only lose out on the tax free side but also subject yourself to additional paperwork, and currency exchange fees and risk. Also if you continue contributing to the TFSA once you leave, you could be subject to penalties and interest as you will have lost your right to contribute once you are no longer tax resident. You could consider investing in the TFSA while you are there and then liquidate when you come back and reinvest the remainder over here to simplify matters at that point. At least that way you get 2 years of tax free growth. Check out monito.com for cheapest ways to transfer money over and back. If transferring large sums, often a forex broker will be the cheapest. Best of luck with your adventure 🙂

You are in the exact niche I need. I’m Irish but aiming to go to Canada this year on 2 year WHV, well if the border ever re-opens I will. PR is something I am/will consider but I am going go with running assumption that I leave after my 2 years are up.
Considering that is a TFSA or anything like that serve any purpose or am I just better off sticking them in savings account and getting 1% or whatever it is now.
Alternatively if I do go down the PR route at what point along the process would suggest I try to set-up TFSA, RRSA etc?

Thanks