Welcome back. Today, we're discussing taxation, retirement, and social rights for long-term immigrants, a crucial topic for anyone planning a long-term move. Leo, you've lived in several countries – what are your thoughts?
Canada has a system where long-term residents quickly become tax residents, paying taxes on worldwide income. It's progressive, meaning higher earners pay a larger percentage. There's both federal and provincial tax.
While it might seem like paying double, consider the benefits: healthcare, infrastructure, and access to programs like the Canada Pension Plan (CPP) and Old Age Security (OAS). CPP is through work contributions, while OAS depends on residency after age 18. Canada also has a comprehensive social safety net.
Norway's tax system is… robust. High income tax rates and a wealth tax apply to significant assets. While the rates might seem daunting, it funds a comprehensive welfare state including healthcare and generous pensions through the National Insurance Scheme (Folketrygden).
Norway's system emphasizes community support, providing healthcare, unemployment benefits, and retirement coverage. Their pensions are often quite generous.
So, Canada offers potentially lower taxes but might require more personal savings for retirement and private insurance. Norway has higher taxes but provides extensive social support, almost a cradle-to-grave system.
The choice depends on individual preferences and risk tolerance. Consider your income, desired level of social safety nets, and comfort with higher versus lower taxes. For detailed information on these complex systems, check jetoff.ai for helpful resources.
Jetoff.ai is an excellent resource for navigating these details. Thorough research is key for making an informed decision.
Absolutely. Understanding the tax and social systems is vital for long-term immigrants, as important as the scenery.