Feeling fed up with high taxes, outrageous inflation and freezing winters and are thinking of leaving Canada? You’re not alone. In 2022, the number of Canadians moving to the U.S. alone reached 126,340, a staggering 70% increase from the 75,752 who made the move in 2012.
It’s estimated that about 4 million Canadian citizens were living abroad in 2016.
As a born and raised Canadian citizen, I love Canada and the people within it, but I can’t deny that there have been a lot of problems lately with the country. Having lived and worked abroad myself in the past, I offer a unique perspective on this topic, and I’ll share some deeper insights you might not have considered BEFORE making the big move.
And don’t miss the end, where I’ll guide you on how to research the cost of living in other countries to help you budget effectively.
Why people want to leave
The main reason people want to leave Canada is due to the rising cost of living, especially in cities like Toronto and Vancouver, where housing prices have skyrocketed. Moving to countries like Mexico, Portugal, or some parts of the United States can significantly reduce your cost of living with more affordable housing and cheaper groceries.
Canada’s harsh winters, with temperatures well below zero and months of snowfall, drive people to seek milder climates. Trading in snow shovels for beach towels is an attractive prospect.
Canada’s healthcare system, despite being publicly funded, faces significant challenges. Long wait times for medical services and a low doctor-to-population ratio lead to resident dissatisfaction. According to the Commonwealth Fund, Canada ranks poorly among high-income countries for specialist wait times and elective surgeries.
Living abroad also offers adventure and new experiences, allowing you to immerse yourself in new cultures, cuisines, and ways of life, providing great opportunities for personal growth and learning.
Whatever your reasons for wanting to leave, let’s go over the steps you’ll need to take to make it happen.
Step 1: Make Sure You Want to Leave Canada Forever
Before you pack your bags and leave Canada for good, make sure you’re absolutely certain this is what you want. A trial run can save you a lot of heartache and hassle.
Spend a few weeks or months living in the country you’re considering, or even try multiple countries. This hands-on experience is invaluable. You might realize you hate it, or maybe you’ll fall in love with the lifestyle, strengthening your resolve to move permanently. Either way, you’ll gain crucial insights.
Travelling first can prevent future regrets. It’s rare for someone who’s never travelled to suddenly decide to move permanently. Discover what fits your lifestyle by immersing yourself in new environments.
During your trial run, you might find the new country isn’t as safe as you’d like or that the culture feels closed off, making it hard to form connections. You might miss your friends, family, and even aspects of Canadian life, like the healthcare system and social connections. As they say, the grass isn’t always greener.
In the past, when I was travelling more, I did a 6-month trial run to see if I liked the lifestyle. I met many people—from digital nomads to long-term expats. Their experiences helped me understand the realities of living abroad and gave me a much clearer picture of what to expect.
Step 2: Making Money Abroad
Unless you’re incredibly wealthy, you’ll need to find a way to make money while living abroad. Here are three popular paths, from easiest to hardest:
Expat (Company Transfer)
If you’re considering an expat position through a company transfer, start by seeking opportunities within your current company. Express your interest in international positions to HR and network with colleagues who have experience working abroad. Prepare for the move by understanding the legal and logistical aspects, including visas, housing, and taxes.
Benefits include job security and maintaining your job and benefits while experiencing a new country. Companies often provide relocation assistance and support networks, and the international experience can boost your career. However, you might have less flexibility over your location and work assignments, adapting to a new work culture can be challenging, and it usually requires a longer commitment.
Remote Work
To pursue remote work, find a job through websites like Remote.co, We Work Remotely, and FlexJobs. Set up a home office with reliable internet, a comfortable workspace, and necessary tools, and manage your time effectively using tools like Trello or Asana.
Remote work offers flexibility to work from anywhere with an internet connection, saving time and money by eliminating the daily commute. However, it can be isolating without the social aspect of an office, requires a high level of self-motivation and time management, and may offer less job security and fewer benefits compared to full-time employment.
I’ve met many remote workers, often in the software space but also from other areas of business like HR, sales, and even lawyers.
Digital Nomad
Becoming a digital nomad involves developing a skill or service such as freelance writing, graphic design, programming, or consulting. Build a portfolio to showcase your work online through a personal website or platforms like Behance or LinkedIn, and find clients on freelance websites like Upwork, Fiverr, and Freelancer.
This path offers the freedom to travel and experience new cultures, working for multiple clients, which can be more stable than relying on a single job. It fosters personal growth as you adapt to various environments. However, income can be unpredictable, balancing work and travel can be challenging, and navigating visas and work permits can be complicated. You might also get tired of not having a home base.
I’ve met so many digital nomads in the past, and they were doing so many different things, like digital marketing agencies, startup owners, content creators, and a good friend of mine is even a therapist who holds client meetings as he travels. My point is that there is a diverse way of leveraging your skills to make money online, so take a look to see what you might be successful at doing.
Step 3: Understand the implications of becoming a non-resident of Canada
To become a non-resident of Canada, you need to sever significant residential ties, such as selling your home, closing bank accounts, and relocating your family. You’ll need to keep documentation of your new residency status, like rental agreements and utility bills.
Be aware of the departure tax, which applies to the deemed disposition of certain properties as if they were sold on your departure date. You’ll need to pay tax on the unrealized gains of your investments and real estate, though RRSPs, RRIFs, and certain real estate are exempt. Report these deemed dispositions on your final tax return and pay capital gains tax on any unrealized gains, with options to defer if necessary.
Your TFSA can remain open, but you can’t make contributions while you’re a non-resident, though earnings within it will still be tax-free in Canada. You can keep your RRSP and RRIF accounts, but withdrawals will be subject to a 25% withholding tax, which might be reducible by tax treaties.
You can continue receiving CPP benefits abroad based on your contributions. For OAS, you’ll be eligible to receive payments outside Canada if you’ve lived in the country for at least 20 years after turning 18, though these payments will be subject to non-resident tax.
Step 4: Understand your new country rules
Figuring out the details for becoming a non-resident of Canada is relatively straightforward, but understanding the rules of your new country can be much more challenging, especially with potential distance and language barriers.
Moving to a new country requires more than just a change of scenery. To have a smooth transition, here’s what you need to figure out BEFORE you move.
Residency and Tax Laws:
Research the residency requirements of your new country, including applying for temporary or permanent residence permits. Some countries require you to register your address with local authorities upon arrival. Understand what makes you a tax resident and look into tax treaties with Canada to avoid double taxation.
Visa Laws:
Understand the different visa options and choose the one that fits your situation. Familiarize yourself with the required documents, timelines, and conditions, including restrictions on work, study, and length of stay. Know the procedures for renewing your visa.
Banking:
Open a local bank account by choosing a reputable bank and preparing the necessary documents like your passport, visa, and proof of address. Understand the local currency, exchange rates, and banking system.
Other Important Regulations:
- Healthcare: Learn about the healthcare system and whether you need to purchase health insurance.
- Driving: Understand local driving laws and requirements, including the need for an international driving permit or converting your Canadian license.
- Legal Requirements: Familiarize yourself with local laws and emergency services to avoid legal issues and ensure your safety.
Step 5: Explore getting citizenship elsewhere
Securing citizenship in a new country offers benefits like stability, access to local services, and full integration into the community. Here are some common pathways to consider:
Citizenship by Naturalization
One common way to obtain citizenship is through naturalization, which usually involves living and working in a country for a specific period. For example, in Germany, you can apply for citizenship after five years, provided you meet language and integration requirements. The process generally requires you to maintain continuous residency, comply with local laws, and often pass a language test or demonstrate cultural integration.
Citizenship by Investment
Another route is through investment programs, where countries grant citizenship in exchange for significant financial investments. For instance, Turkey offers citizenship if you purchase real estate worth at least $400,000 USD. The process involves making the required investment, providing proof of funds, and meeting any additional residency or legal requirements set by the country.
Citizenship by Relatives and Ancestry
If you have parents, grandparents, or sometimes great-grandparents from another country, you might be eligible for citizenship by descent. For example, you can apply for Italian citizenship if you can prove Italian ancestry or for Irish citizenship if you have an Irish grandparent. This process typically involves gathering relevant certificates, such as birth and marriage records, and submitting them with your application to the consulate or embassy.
Additional Pathways
There are other ways to obtain citizenship as well. Marrying a citizen of another country can often expedite the process. Some countries, like the UAE, grant citizenship for exceptional skills in fields like science or culture. This usually involves a nomination or application demonstrating your contributions or skills.
Bonus Tip – Use Numbeo to Compare Cost of Living
I’ll show you a little hack on how I do a quick and dirty estimation about the cost of living in a new country that I potentially want to live in:
Step 1: Visit the Numbeo Website
- Go to Numbeo: Open your web browser and navigate to Numbeo’s website.
- Select Cost of Living: Choose “Cost of Living” from the top menu.
Step 2: Choose Your Cities or Countries
- Input Locations: Enter the names of the cities or countries you want to compare, e.g., Toronto, Canada vs. Lisbon, Portugal.
- Add More Comparisons: Click “Add another city” to compare more locations.
Step 3: Review the Comparison Results
- Overview: Numbeo provides an overview of cost of living indices for selected locations.
- Detailed Breakdown: See costs for:
- Rent: Monthly rent for apartments in city centers and suburbs.
- Groceries: Prices for common items like milk, bread, and eggs.
- Restaurants: Costs of dining out.
- Transportation: Prices for public transportation, taxis, and gasoline.
- Utilities: Costs for electricity, heating, cooling, water, and garbage.
- Healthcare: General healthcare costs and insurance.
If you’re seriously considering taking the plunge and moving countries, I would highly recommend talking to a cross-border tax specialist. At Blueprint Financial, we’ve helped guide people through this life-changing decision. Visit our services on this website for more details, and book a free consultation!
