LostInNS

If you had the choice:

Making 300,000 CAD a year (doesn't matter where you live work-wise) and living in Europe, not having to pay income taxes on that amount.

OR

Moving to NS for a better lifestyle but having to pay 43% income tax on those 300,000. It's still an above average income and one could live more than comfortable on it but would "sacrificing" 129,000 CAD yearly be worth the idea of a better lifestyle? I want to mention that this kind of salary would be for a maximum of another 10 years.

I know nobody can make the decision for us but I'm just wondering if we are completely out of our minds or if "money is not everything" if still comfortable is more important. Don't really want to discuss these financial matters with friends hence my question in an anonymous forum. I'd really appreciate opinions on this.

quiltman

Where have you got the idea from that living in Europe means not having to pay income tax? either you'll pay in Canada or whichever European country. UK tax on that income would be about 48%.

let us know these countries that don't charge income tax as i'm sure many of us on here would love to relocate!

Shirtback

All things being equal, I'd go for the tax free option. I'm intrigued about where in Europe you'd get this deal?

After a number of years in Canada, I'd choose just about anywhere in Europe over Canada at that salary level .

S

LostInNS

It's not really the issue here but I'll explain. Like most people, said person pays taxes where he works (for about 6 months of the year). Let's say he works offshore in Brazil and his company pays his income tax for him in Brazil. Brazil has a tax treaty with i.e. the Netherlands so when he lives in the Netherlands (but spends less than 183 days out of the country) he is not taxed again no matter how much or little was paid in Brazil.

Situation would be different with Canada. Canada taxes its citizens on their worldwide income no matter how many days they are out of the country. Also Canada does not have a tax treaty with Brazil (I'm only using this country as an example) so not even the income tax paid already in Brazil would be deductible. Hope that explains.

So I guess by your response your answer would be you would live in the EU if that meant not having to pay tax (again).

LostInNS

Thanks for your reply Shirtback. Yeah we've been here (in NS) for a couple of months now and I'm wondering if we are out of our minds...

Shirtback

Sorry, your further explanation was clear as mud

S

LostInNS

I don't know how to explain it better. What's confusing for you?

This doesn't apply to 99% of the working population that have a 9-5 job in the country they live in where income taxes are deducted automatically. It just applies to people who for instance work on a ship or on a platform. Their employers fly them home every 6 weeks for 6 weeks (or whatever the deals is).

mandymoochops

Let me rephrase that

This doesn't apply to all you 99% plebs that earn a pittance (that was a joke before anyone starts getting shirty)

I think if you are wondering if you've made a mistake - the seed is sewn already.

christmasoompa

They still have to pay tax in their country of residence though surely? Unless it's income tax free. So for example, somebody living in the UK and working offshore would still have to pay UK income tax, as that's where they are resident.

So I'm still intrigued by your comments and which European country you live in that doesn't tax it's residents?

In any event, for that kind of salary I'd live in Europe (South of France or the Cotswolds maybe), regardless of tax.

Lunathecat

Is this a real question, really? If you could live in europe tax free and earn $300k why the hell wouldnt you? Sometimes i wonder if people just ask these questions to make the rest of us "plebs" feel inadequate. If so, dont bother - i can manage that quite nicely on my own thank you!

Novocastrian

To be fair to the OP, it's a genuine question. My BIL is in the same situation working an a senior consultant for a European offshore exploration company with offices based in Norway. Several years ago he incorporated himself in Iceland and his salary/fees are paid in US$ into his corporate account.

Although he spends his "shore leave" in the UK his overall tax liability is very small indeed. He actually earns a good bit more than the quoted figure.

confused_uk

I think the most important question is are you enjoying living in Nova Scotia? If you are not sure then maybe you would be better off in Europe otherwise you might start getting bitter about how much money you are losing. Personally I would choose the place I want to live rather than the money especially if I was still left with a pretty decent amount of money anyway. I think if you choose to stay you have to think of it as the price you have to pay for living somewhere you love & just accept that or you'll drive yourself nuts.

izzi81

Your thread title question was is it worth paying more tax to live somewhere with a better lifestyle. But then you say:

If you are living there and thinking you are out of your minds, it doesn't sound like you are living the better lifestyle? If I loved where I lived, I would pay the tax. If I didn't, I'd seriously consider living somewhere else and keeping more of my money...

Shirtback

Ah, that makes more sense.

+1

S

Tirytory

Ah ya gotta love a bit of old legal tax evasion.... Does your brother-in-law indeed not use any of the UK infrastructure when he lives there?

Op live wherever makes you happy...if it makes you happy to have more of your money sitting in your bank account, then go live in Europe. Or you can feel good about living in NS knowing that you're paying your dues.

Personally I think money means nowt, I'd want to live wherever my family and friends were.