Finances and Cost of Living in Canada

TAXATION

Depending on whether or not you are considered to be resident in Canada, the income tax will be regulated differently :

1. Non-residents (foreigners living in Canada for less than 183 days in the tax year) are subject to Part XIII or Part I. Part I is more likely to be applicable to doctors working overseas.

  • Part XIII Tax: if your income in Canada comes from dividends, pensions, retiring allowances, annuity payments, management  fees, etc. it is taxed at 25%
  • Part I Tax: To calculate tax liability, you will need to file a tax return. If you receive income from employment in Canada, taxable parts of Canadian Scholarships, fellowships, bursaries or research brands amongst others, the payer usually deducts Part I tax from these incomes. You may have to file a Canadian tax return to calculate your final tax obligation.

2.  Residents (you are considered a resident if you stay in Canada for 183 days or more during a tax year) pay tax starting at 15% of their gross salary and continuing progressively. Those who receive higher annual incomes (over CAD 44,000) must pay higher taxes. Check rates here.

For more information, visit the Canada Revenue Agency.

COST OF LIVING

Canada compared with Western Europe is relatively cheap. However, there are differences between the cost of living in rural areas and large cities, which can be expensive.

According to Mercer´s 2012 Cost of Living report, Toronto was ranked as the 61st most expensive city in the world, followed by Vancouver (63rd) Montreal (87th) and Calgary (92nd).

Overall Canada is becoming more expensive due to the strength of the Canadian Dollar. However salaries are increasing as well and in fact have increased by 17% in the past 7 years.

The cost of living in Canada ranges between CAD ​​800 and CAD 1,200 per month for accommodation, food, transport and entertainment. Buying in markets can be very expensive as well as eating out and transportation:

For more information on the cost of living, check out this link: http://www.numbeo.com/cost-of-living/country_result.jsp?country=Canada.

EXCHANGE RATE

For more information about the GBP:CAD exchange rate, please follow the link below:

http://themoneyconverter.com/CAD/Exchange_Rates_For_Canadian_Dollar.aspx

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