Before you accept what you think is that dream job in some tropical paradise, here are a few things you should consider before you make that decision.
First, make sure you check out the cost of living in the country you’ve been offered a job in. The cost of living in most Caribbean countries is more than double that of Canada. I’ll use Bermuda as an example , because I lived and worked there for 6 years. I can tell you from my personal experience, that the cost of living in Bermuda is 2 1/2 times the cost of living in Toronto. And I’m not talking about luxury items. I’m talking about everyday essentials like bread, toothpaste, shampoo, rent, etc. A tube of toothpaste that costs $ 2.00 Canadian at Dollarama (yes I shop at Dollarama), costs $USD 6.00 in Bermuda. A loaf of bread that costs, $ 3.00 Canadian at Loblaws, costs $ USD 7.00 in Bermuda. When, I left Toronto, I was living in a 2 bedroom penthouse apartment in the Bloor-Yorkville neighborhood of Toronto and paying $1,850.00 per month in rent. In Bermuda, I was paying $USD 3,900.00 for a 2 bedroom ground floor apartment in Hamilton, and that was considered a good deal. The place was nice, but it wasn’t as nice as my Toronto apartment.
Then there is the work permit issue. Non-Bermudians cannot work in Bermuda without a work permit. If you’ve been offered a job there, then your employer will take care of that for you. But if you are bringing a spouse or a partner with you,then they won’t be able to work.If you are single like me, then that won’t matter to you. But if you are a two-income household, then it is a huge consideration. You’ve now gone from relying on two incomes,to relying on only one income. And your spouse or partner will likely end up going stir crazy, because after a few months, you both will have seen and done everything that there is to do there, and while you’re at work, he or she will be stuck at home with nothing to do. Being stuck at home with nothing to do, on an island that is only 20 miles long, will be a bit like being in lockdown for the duration of your stay. And if that job doesn’t work out for whatever reason, then you’re both screwed, because it is a condition on every work permit that you can only work for that employer, and when the job or the work permit expires, then you have to leave the island. You can no longer reside there. (But then why would you want to live there, if you had no income to support yourself,in one of the most expensive places in the world to live?)
Next you should consider the costs of education if you have school age children. Most expats send their kids to private schools on the island because the free state schools are not up to the same level as Canadian state schools. School fees are going to set you back $20,000.00 per year, per child.
You should also consider the cost of healthcare. It’s not free like in Canada where you just show your health card and you’re covered. You have to buy private health insurance. It is not uncommon for comprehensive health insurance premiums to exceed $1,000.00 per month, plus a 50% co-pay when you actually visit a doctor. I got a reduced rate of $400.00 per month because I was a government employee, but I still had to pay the co-pay whenever I visited a doctor. Multiply that by the number of people in your household.
Then there is the crime rate to consider. Bermuda has a lot of crime. Remember the brutal rape and murder of Canadian teenager Rebecca Middleton? I was told by a local when I first moved there,”Don’t go to Court Street. They will eff you up on Court Street.” I gave that same advice to a friend who was visiting me. While I was at work one day, he phoned me up sounding distressed saying ” Norm, I think I’m on that street you told me not to go on.” There’s a reason to stay away from Court Street.
And last but not least, there is the corruption that exists in a lot of these places to consider. Bermuda is no exception. I’ve personally witnessed corruption in Bermuda. It was the departing advice of the outgoing Attorney-General to the current government, to clean up corruption in Bermuda.
Don’t forget about the Canadian departure tax. As a final parting gift, the Canadian government imposes a departure tax on Canadian residents who are emigrating from Canada. Basically, you are deemed to have disposed of all of your assets at their fair market value on the date of departure. This may result in sigificant significant capital gains liability for you. There are exceptions to this departure tax, such as stocks or bonds held in an RRSP or TFSA, but most non-registered assets will be caught. I’m going to write a separate article on the departure tax, so I won’t go into it in detail here.
When you weigh up all of the above factors, that dream job might end up being a disaster if you’re not careful. When I worked at the Attorney-General’s chambers in Bermuda, we actually hired a guy from Toronto – a lawyer at a big Bay Street firm. We had agreed on salary, start date, and everything else. A month before he was supposed to start, he called up and said he had changed his mind and would not be coming. I guess he had done the math, and it would end up being a financial loss if he were to take the job and move to Bermuda.
Anyway, the take away from this, is to do your due diligence before you accept what you think, is going to be that dream job in paradise. It may end up costing you a lot.