Is a foreign retirement pension taxed by CRA?

[Jorge Bittencourt]

I received my PR in February 2025 through the PGP sponsored by my son. I'm 65 years old, a retired civil servant in Brazil, and my only source of income is this monthly pension I receive. I don't plan to work in Canada, just bring my savings and make investments. Will I have to pay income tax in Canada on my Brazilian pension?

 

[YVR123]

I received my PR in February 2025 through the PGP sponsored by my son. I'm 65 years old, a retired civil servant in Brazil, and my only source of income is this monthly pension I receive. In Brazil, I'm exempt from income tax because I had a serious illness. I don't plan to work in Canada, just bring my savings and make investments. Will I have to pay income tax in Canada on my Brazilian pension?

In general pension is consider taxable income. (You need to report world wide income as a tax resident of Canada)

You can consult with an accountant whose familiar with international income. As far as I know, there is no "exemption on tax" for "serious illness". It's interesting that you passed the medical exam under your condition.

 

[canuck78]

Do people not do this type of research when applying for PGP? This should have been a consideration before applying.

 

[Jorge Bittencourt]

In general pension is consider taxable income. (You need to report world wide income as a tax resident of Canada)

You can consult with an accountant whose familiar with international income. As far as I know, there is no "exemption on tax" for "serious illness". It's interesting that you passed the medical exam under your condition.

The disease was completely cured.

 

[YVR123]

The disease was completely cured.

That's great news. But as far as I know, Canada do not have tax exemption for sickness.
People usually unable to work under sickness will have lower income or they can claim some of their medical expenses for tax deduction.
But it's best to discussion with a tax accountant.

 

[Jorge Bittencourt]

Thank you for your help.

 

[scylla]

I received my PR in February 2025 through the PGP sponsored by my son. I'm 65 years old, a retired civil servant in Brazil, and my only source of income is this monthly pension I receive. I don't plan to work in Canada, just bring my savings and make investments. Will I have to pay income tax in Canada on my Brazilian pension?

Yes. You have to file taxes on your worldwide income.

 

[armoured]

I received my PR in February 2025 through the PGP sponsored by my son. I'm 65 years old, a retired civil servant in Brazil, and my only source of income is this monthly pension I receive. I don't plan to work in Canada, just bring my savings and make investments. Will I have to pay income tax in Canada on my Brazilian pension?

While I agree with the comments by others that your pension will be taxable income, worth noting that if you are paying tax on the pension payments in Brazil, you MAY be able to deduct the taxes paid at source from your taxes payable in Canada. Usually this depends on whether there is a bilateral double-tax avoidance treaty or agreement of some kind.

Since you don't know the basics of this - STRONGLY suggest you consult a tax professional with knowledge specifically about Canada/Brazil in this regard.

 

[canuck78]

Agree that it really depends on tax treaties and how much time you plan on spending in Canada. If you applied for PR and not TRV assume most want to move to Canada and then they typically become a tax resident. All considerations that should have been made before applying for PR. The amount of money taxpayers processing these applications when people haven’t done basic research is absurd. Processing 17.5k applications for 10k spots is a perfect illustration of Canada’s productivity issue. Most will continue processing even if they don’t qualify, file JRs, etc. the cost is just insane for a program that is a net drain on the economy. IRCC needs reform asap. I also see no changes to income verification for this lottery.

 

[Buletruck]

Thank you for your help.

You'll also have to pay taxes on any profits you make outside a registered investment fund as well.