Canada’s Digital Nomad Visa offers tech talent a gateway into the Country
Remote workers can live and work in the country for up to 6 months.
Canada has positioned itself as an attractive destination for skilled tech workers through its comprehensive Tech Talent Strategy. Leading Canada’s initiatives to lure talent from around the globe, the Temporary Resident Digital Nomad Visa stands out as an appealing prospect for digital nomads seeking new horizons.
This new visa caters to remote workers who are employed by foreign companies and have the freedom to work from anywhere in the world. With Canada’s stunning landscapes, high quality of life, and welcoming immigration policies, it’s no surprise that it has become a magnet for those in search of fresh and exciting places to live and work.
Applicants are required to already be in employment with a foreign employer and hold a valid passport or a valid work and residency visa for their home country – they will also need to prove that they have sufficient funds and health insurance to support themselves during their stay in Canada. Other than that, applicants need to have the right attitude to make a digital nomad lifestyle in any of Canada’s amazing cities work for them!
To commence the journey, applicants must submit their applications to Immigration, Refugees, and Citizenship Canada (IRCC). Successful applicants are granted entry into Canada and can live and work in the country for up to six months at a time.
Application fee: CAD$100
Biometric fee: CAD$85
Work permit fee: CAD$255
Check your nation’s tax treaty with Canada
For Americans embracing this digital nomad lifestyle while working remotely for US companies, tax implications come into play. Residents in Canada, regardless of their citizenship, are considered tax residents under Canadian tax law. This means that they will be subject to Canadian income tax on their worldwide income, including earnings from their remote work. Nonetheless, tax treaties between Canada and the United States will mitigate double taxation for American citizens by allowing them to exclude foreign earned income from their Canadian taxable income.
EU citizens can also benefit from tax treaties to avoid double taxation. For example, with the Canada-Germany Tax Treaty, a digital nomad working under the new visa can exclude their foreign earned income from their Canadian taxable income, reducing their tax liability in Canada significantly.
However, tax status can be complex and dependent on individual circumstances. Keeping meticulous records of income and expenses, filing Canadian tax returns annually, and potentially contributing to Canadian social security are crucial aspects for EU citizens to consider when evaluating their tax situation under the Digital Nomad Visa.
As the Temporary Resident Digital Nomad Visa continues to evolve, potential applicants must stay informed about any changes in the program’s requirements. For now, it stands as an enticing opportunity for digital nomads looking to make Canada their temporary home. However, seeking professional tax advice before proceeding with any application is always wise, as individual circumstances may vary.
Canada’s Temporary Resident Digital Nomad Visa opens doors for skilled tech workers worldwide to experience life and work in the Great North. As this program thrives, so do the possibilities for digital nomads seeking adventure, innovation, and the chance to call Canada home.