By entering a Canadian bank, French-speaking immigrants discover a new jargon: debit card, credit card, rewards, credit rating… You should know that in Canada, the debit card (or Interac card) is only used to withdraw money and carry out transactions debited immediately from the checking account. To buy on the internet, you need a credit card, linked to a separate account and which will have to be repaid on installments. Purchases made via this card allow you to obtain cashback (or reward), in the form of reimbursement of a percentage of expenses.
“The credit card is important in Canada because it allows you to build your credit rating, in order to check your solvency in the event of the purchase of real estate, but also to find a job, rent a car or buy a telephone plan. , explains Vanessa Rodriguez, head of retail customer service at the National Bank of Canada. I advise newcomers to use their debit card only to withdraw money and to reserve the credit card for all their purchases, in order to increase their credit rating. Because if you regularly repay your credit account, your credit rating will be good and your authorized credit limit will increase. It takes at least three months to build your credit history.
Even before their arrival on Canadian soil, immigrants can pre-open an account on the National Bank of Canada website and benefit from free banking fees for three years (approximately $700 CAD). Other banks are deploying strategies to attract newcomers: at RBC, they can get a CAD $15,000 credit limit, with no credit history required, and get monthly banking fees waived for a year. At CIBC, this waiver is valid for two years and newcomers get $350 CAD when opening a CIBC Smart account.
Established for 17 years in Montreal, Services d’Acadie is a professional accounting firm specializing in the taxation of expatriates and non-residents. An aspect often overlooked by immigrants but which is important. “You should know that in Canada, there is a departure tax that affects the heritage remained abroad. If you have a professional heritage in France, you develop in Canada and North America and you return to France after ten years, the tax impact will be major, informs Éric Lescure, tax advisor at Services d’ Acadia. Our goal is to respond to tax issues throughout the life cycle of expatriation: on assets remaining in France, on tax returns in Canada and France, on inheritances, donations from France … Even before their arrival, we help immigrants to limit the fiscal impact of settling in Canada, because in an immigration project, one must not neglect taxation.” A blog and webinars also educate expats on their tax obligations: www.servicesdacadie.com.
