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I have a Canadian and German passport, but I have lived in Canada for 15 years. My grandpa, in Germany, had opened a certain savings account for me from which I will recieve a lot of money from in 2013. (I cannot touch the money before or else a certain bonus will be lost). I talked to the German bank and they said that when the agreement is done and I can get the money they will transfer this money to my Canadian bank account with a transfer fee, but I will not have to pay any German taxes on it since I do not live in Germany. What kind of taxes will I have to pay in Canada on this money?

Thank you

  • Is the account in Germany on your name? – Vitalik Jun 8 '11 at 12:46
  • Yes, it is, but my father has power of attorny over it. It is not a regular account so he can pay into it but cannot withdraw from it. He had to pay into it, by agreement, until 2010. But nothing really can happen to the account unless I say so. I hope this helps. – Anna Jun 8 '11 at 13:09
  • You might (I'm not a Canadian tax lawyer so I really don't know) be able to argue (given a agreement and/or banking arrangement like that) the money is already yours, and/or that it was gifted to you gradually over several years. – ChrisW Jun 8 '11 at 14:36
  • What kind of taxes would you have to pay on it in Germany? You don't usually pay taxes on account, you pay it on income or interest. – Vitalik Jun 8 '11 at 16:35
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There is no gift or inheritance tax in Canada, so you will pay zero.

  • Anna, to add to this: Once the money is (or has been) considered to be yours, any interest earned on the gifted money (whether earned in Germany or in Canada) would be fully taxable as income to you. It will be important to establish when, in fact, this money was considered your property, so that from that point forward you can calculate income taxes on any interest earned. – Chris W. Rea Jun 8 '11 at 16:23
  • If the account is in the same name. so it's not really a gift or inheritance. – Vitalik Jun 8 '11 at 16:36
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I think if you transfer money from your account in Germany to your account in Canada you don't have to pay any taxes. However if you get any interest on your deposits, you probably have to pay tax (and probably in Canada) regardless where the account is.

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