Can new Canadians open a TFSA?

Posted 06 May 2016 by Lorna Maughan

Now that I have been here in Canada for over a year I am starting to look into ways in which I can invest some of my savings in the most tax efficient way. In Canada one of your options is a TFSA (Tax Free Savings Account), a relative equivalent to the UK ISA (Individual Savings Account),

Unlike the UK ISA, any unused allowance from previous years can be carried forward. For new residents, you are eligible for the full allowance in the year you came to Canada as a resident, providing you are 18 years of age and have a Social Insurance Number (SIN). So if, like me, you came to Canada in 2015 then you have the $10,000 allowance from last year plus the current year's allowance of $5,500. If you arrived before 2009 and you haven’t used any of your allowance, then you would be able to invest up to $46,500.

So how can you invest in a TFSA? Like the UK, you can choose to invest in equities, property, fixed income, or cash. You can also hold TFSAs with multiple carriers, although it can be more difficult to track your contributions that way. Give us a call to get started today!