Market Overview

Looking To Escape An Unfavorable Presidency Outcome And Move To Canada? That's Not A Smart Financial Move

Share:
Looking To Escape An Unfavorable Presidency Outcome And Move To Canada? That's Not A Smart Financial Move

If Donald Trump wins the U.S. presidency, many Democrats, Republicans and Independents will take a closer look at moving to Canada. If Hillary Clinton wins the presidency, many Democrats, Republicans and Independents will also look into moving to Canada.

The problem with this scenario is that it is extremely difficult and expensive for most and simply unfeasible for others.

Here are 6 quick facts you need to know about relocating to the United States' northern neighbor, courtesy of Kelli Grant, CNBC's personal finance and consumer spending reporter.

1. Moving Is Expensive

Application fees for Americans to move to Canada vary. The lucky few who qualify as skilled workers will need to pay $380, while other economic-class applications require a payment of $425, in addition to other fees for family members.

However, hiring an attorney could cost anywhere from $400 to $7,500: a figure that may be out of reach for the tens of millions of Americans with little to no savings.

Related Link: Facebook "Likes" Say A Lot About Your Political Views

2. No Escaping Uncle Sam

Americans looking to escape a Trump or Clinton presidency while maintaining their citizenship can't escape Uncle Sam, as the U.S. has a worldwide income taxation system.

"Whatever you earn, wherever you are, we tax it," Tim Gagnon, an associating professor of accounting at Northeastern University explained to CNBC.

The complexities of filing two tax returns alone could cost more than $1,000.

3. Finding A Job

Canada's unemployment rate stood at 6.8 percent in June, compared to 4.9 percent in the United States. This alone makes it incrementally more difficult to find a job, that is, after spending months getting the proper credentials in the first place.

4. More Tax Implications

Americans living in Canada need to be extra careful in what they invest in. Passive foreign investment companies and Canada-based mutual funds can create notable tax implications.

5. Affordable To Visit, Not So Much To Stay

One U.S. dollar can be exchanged for approximately $1.31 Canadian dollars. This makes visiting Canada affordable for a vacation. However, the average home price across the country is $285,076 — 15.5 percent higher than the median price in the United States.

Also, Canada's public health care system is not available to those who are not citizens and permanent residents.

6. Don't Forgot The Actual Moving Costs

When all is said and done, an American moving to Canada needs to consider the cost of moving their possessions.

Moving the contents of a 5,000 square foot home to Canada could cost up to $30,000. And then there is additional costs of dealing with Canadian customs, that is, if your items are cleared at the border crossing in the first place and not impounded or denied altogether.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Posted-In: Canada CNBC Donald TrumpTopics Top Stories Media Personal Finance General Best of Benzinga

 

Related Articles (EWC + SPY)

View Comments and Join the Discussion!
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

Amazon Has A Laundry List Of Catalysts; JPMorgan Raises Price Target

Worst Performing Industries For July 29, 2016