How to retire in Canada, essential information for expatriates – London Business News | London Wallet

Canada has long been a high-demand destination for retirees, with its low crime rates, stable political system, vast areas of open countryside and affluent, lively cities. While there isn’t a retirement visa as such, it is possible to retire in Canada, with several potential visa routes that may be suitable, depending on your circumstances.

As a country that routinely ranks among the best places in the world for quality of life and security, Canada is also appealing to expats who want an easy transition to a place where English is the primary spoken language, alongside French in the province of Quebec.

Chase Buchanan Private Wealth Management, an expert global team of wealth managers and financial advisers with a local base in Toronto, shares some insights into living in Canada as an expat retiree, as well as some of the visa categories and options prospective residents may wish to consider.

Canadian visas open to foreign national retirees

Canada is a desirable location for expats of all ages, and although it offers several visas aimed at professionals and students, it doesn’t have a separate retirement visa. UK citizens can, though, qualify for visas if they already have family members who are Canadian residents, or if they are willing to initially work or launch a business to claim a right to residency.

Expats with children, parents, grandchildren, or a spouse who are either Canadian citizens or permanent residents can ask those relatives to sponsor their visa. However, the person nominating the visa applicant must demonstrate that they have the financial means to support the main applicant.

Another option is the so-called ‘super visa’, which allows parents and grandparents of citizens and residents to apply for a two-year permit, allowing multiple entries over the two years. Because this visa is temporary, it doesn’t provide access to Canada’s public health system.

Foreign nationals of working age and planning a future retirement in Canada can instead consider a work visa, with multiple options available, including provincial programs to fill skills gaps and Express Entry visas for those with sought-after qualifications and experience.

Finally, you can consider a Start-Up Visa if you have the resources to launch a business. Foreign nationals must have sufficient funds to relocate and secure support from one of the designated venture capital funds worth at least $200,000 (£106,260) or $75,000 (£39,848) if supported by an angel investment group.

Successful applicants can launch a business in Canada with an initial work permit, which can be exchanged for permanent residency in due course. Note that permanent residency isn’t revoked if the business doesn’t succeed.

Understanding living and property costs in Canada

Once you’ve selected a visa route and verified that you’ll be eligible, we also suggest you think about living costs, as these vary considerably between Canada’s largest cities and more remote areas, in some cases by a significant margin.

It’s worth reminding expats that, as things stand, foreign nationals cannot purchase homes in most Canadian metropolitan areas due to the ban on foreign property purchases, which has been extended until 1^st January 2027.

Expats are unable to purchase a property in any city or large town and will have to rent in the interim if they’d like to live in one of these places. Rural regions with populations under 10,000 are excluded from the ban.

In terms of general living costs, most foreign nationals find Canada affordable, with overall expenses 6.9% lower, rental prices 3.2% less expensive, and the costs of eating out 13.4% cheaper in Canada. However, there are contrasts between cities like Vancouver, Montreal and Toronto, where buying an apartment when the ban is lifted will cost 1.1% more, although renting remains 3% more affordable.

Regions outside of the large Canadian cities are cheaper for those intending to buy, with the average property price 8.1% lower at $6,194 (£3,291) per square metre, compared to £3,590 in Britain.

The Canadian healthcare system and access for expats

Any retiree must ensure they have access to the public healthcare system or robust private medical insurance to be able to receive treatment and support if they become unwell or are injured.

While there are some exceptions, expats will almost always need to provide evidence of their health insurance to qualify for a visa. However, some may become eligible for public healthcare once they become permanent residents.

Healthcare in Canada is of a high standard, but it’s far from unusual for even Canadian-born citizens to hold private insurance to supplement the services available through the public system.

Reviewing taxes, pensions, investments and assets before retiring in Canada

Like many overseas countries, Canada has both federal and provincial taxes. That means that your actual tax liabilities will depend on where you choose to live, and this could influence your decisions, given that regional income taxes can be considerably higher in some provinces.

Currently, federal income taxes begin at 14.5% on incomes up to $57,375 (£30,483) following a reform to reduce the lowest tax band from 15% to 14%. This change took effect from mid-year, resulting in an effective bottom tax rate of 14.5% for this year.

To give you an idea of the variations, provincial taxes in Quebec extend up to a top rate of 25.75%, payable in addition to federal taxes on earnings of over $129,590 (£68,851). In Nunavut, the highest provincial tax rate is 11.5% on incomes exceeding $177,881 (£94,508), whereas in Ontario, it is 13.16%.

Retirees planning a move to Canada will need to review these and other tax considerations, alongside thinking about the best ways to manage their wealth, pensions, property ownership, and other assets, all of which are crucial to securing a comfortable and financially secure retirement.

Factors to consider include cross-border tax exposure for individuals who retain UK pensions and assets, the 25% Overseas Transfer Charge when transferring larger pension funds outside of Britain, and complications related to UK inheritance taxes.

Learn more about retiring in Canada as a foreign national expat

Our advice is always to ensure you consult a seasoned specialist with in-depth knowledge of the tax regimes, visa categories, and living costs in Canada, and who is also well-versed in the UK regulations that impact expatriates.

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