Just how easy can it be to live in Canada as a foreigner while still holding employment in another country? Most people are familiar with Canadian immigration options that require you to have a job within the country to be able to live and work in Canada. However, moving to Canada as a Digital Nomad requires the opposite. It requires you to have a remote job with an employer outside of Canada. This means that you get to live in the country with no work or study permit. Yet, you still get to work from the comfort of your preferred location in Canada.

This guide will give you a detailed breakdown of what the digital nomad visa is about to help qualified persons take advantage of it.

Understanding the Digital Nomad Visa

In June 2023, the Canadian government introduced the Digital Nomad Visa. The program is part of a broader strategy to attract global tech talent and boost the country’s innovation sector. It is designed to position Canada as a prime destination for highly skilled remote workers, particularly in the technology and digital fields, by offering them the flexibility to live in Canada while continuing to work for their foreign employers. While Canada already has existing pathways for immigrants, the Digital Nomad Visa is specifically for a growing demographic of professionals who prefer the freedom of working remotely.

One of the key drivers behind this visa is to bolster Canada’s tech sector by tapping into the global talent pool. By allowing digital nomads to enter Canada, the government hopes that many of them will eventually settle permanently. The logic is that once these remote workers experience the benefits of living in Canada, including its robust tech ecosystem, they may decide to seek employment with Canadian companies or start their own ventures. This would not only fill existing tech vacancies but also promote entrepreneurship and innovation within the country.

Moving to Canada as a digital nomad allows you to stay in the country as a visitor for up to six months because it is a temporary visa. During this period, you do not need a work permit to retain your remote job. However, should you wish to secure a job with a Canadian employer and extend your stay in Canada, you will need a work permit.

Digital Nomad Visa Canada Requirements

Proof of Remote Employment or Freelance Work

You will need to show proof of employment or freelance contracts with a foreign (non-Canadian) employer or clients. This can include providing documentation such as employment contracts, letters from employers, or evidence of ongoing freelance or consulting work. The focus is on ensuring that your income comes from sources outside Canada, which differentiates this visa from a traditional work permit.

Canada Digital Nomad Visa Income Requirements

Canada has not placed any minimum income requirement for the digital nomad visa. This is a great advantage over other countries that offer similar visas. Iceland for example requires a minimum income of $8,000. For a Canadian digital nomad visa, however, you only need to prove that you earn enough to afford to live in Canada for the given period of six months.

Tax Implication of the Digital Nomad Visa

Canada’s tax system distinguishes between “residents” and “non-residents” for tax purposes. The non-resident tax status is applicable to anyone staying in Canada for less than 183 days while the resident tax status is for those staying in the country for 183 days or more in a given tax year.

Moving to Canada as a digital nomad makes you a non-resident since you hold a visitor status and stay for six months (about 183 days). This means that your foreign-sourced income (income from employers or clients outside Canada) would not be subject to Canadian income tax. You would, however, be liable for taxes in your home country, depending on your home country’s tax laws and any tax treaties it may have with Canada.

On the other hand, anyone with a resident tax status will be required to report their worldwide income on their Canadian tax return and pay taxes on it. Canada has a progressive tax system, so the income tax rates increase as income levels rise. So, if you decide to extend your stay and secure a job with a Canadian employer, you will be moved to the resident tax status.

Key Documents Required for Digital Nomad Visa Canada

  • Valid Passport: A passport with enough validity to cover your intended stay in Canada, typically plus six months.
  • Proof of Employment or Freelance Work: An offer letter and pay slips to confirm your remote work status. Or contracts, invoices, and client letters showing ongoing freelance work and proving that your income source is based outside Canada.
  • Proof of Sufficient Income: Recent bank statements for up to six months to show that you have adequate savings to support yourself.
  • Proof of Intent to Return to Home Country: You may need to provide documents showing ties to your home country or proof of intent to leave Canada after your visa period. This may be property ownership, family ties, or other commitments in your home country. You may also show a return flight or financial ability to purchase a return ticket.
  • Proof of Accommodation in Canada: You may need to show a rental lease, hotel reservation or other proof of accommodation before moving to Canada as a digital nomad.

How to Apply for Canada Digital Nomad Visa 2024

Check Eligibility Criteria

Before applying, you would review the official eligibility requirements on the IRCC website to ensure that you meet the criteria specific to the Canadian Digital Nomad Visa. This includes confirming that your work is remote and based outside Canada.

Gather Required Documents

You would need to collect and prepare the necessary documents, which are likely to include proof of employment (e.g., employment contract or client agreements), proof of income, a valid passport, and a clean criminal record certificate. Keeping documents organised in advance can help avoid delays in the application process.

Complete the Application Form

Follow the instructions to apply for the visa. This will likely include filling out an official application form provided by IRCC online. This form would typically require personal details, contact information, employment information, and travel history, and may involve filling in information about your intended stay in Canada.

Pay Application Fees

Most visa applications include a processing fee, so you would need to pay any fees associated with the Digital Nomad Visa. This payment is generally made online during the submission process. The digital nomad visa Canada costs $100 for the application fee and $85 for biometrics.

Wait for Processing

After submitting the application, you would wait for IRCC to review and process your documents. This can take between zero to two months according to the website.

Receive Decision and Visa Issuance

Once IRCC makes a decision, they would inform you via email or through their online portal. If approved, you would receive a visa (or entry approval) allowing you to enter and reside in Canada as a digital nomad for the specified duration.

Benefits of Moving to Canada as a Digital Nomad

  • No age limits
  • No IELTS (International English Language Testing System) or other language tests
  • No ECA (Educational Credential Assessment)
  • Short processing time
  • No draws/ waiting for ITAs (Invitation to Apply)
  • Opportunity to search for jobs within Canada
  • Ability to convert your digital nomad visa to a work permit or permanent residence

Frequently Asked Questions

1. Can I work for Canadian companies while on a Digital Nomad Visa?

No, a Digital Nomad Visa is generally intended for remote work with non-Canadian clients or employers. Engaging in work for Canadian-based companies or clients would require a Canadian work permit, as the visa is specifically designed for foreign-sourced employment only.

2. What are the best cities for digital nomads in Canada?

Popular cities for digital nomads include Toronto, Vancouver, Montreal, Calgary, and Ottawa. Each city offers unique qualities such as affordability, tech infrastructure, and access to nature, making them attractive for different lifestyles and preferences.

3. Will the Digital Nomad Visa allow me access to Canada’s public services?

Digital nomads on this visa won’t be eligible for Canada’s public healthcare or certain resident services, as the visa is designed for temporary residence. Health insurance is essential for coverage of medical needs, and digital nomads are generally expected to have the means to support themselves without relying on Canadian public assistance.

4. Can I extend my stay after my initial Digital Nomad Visa expires?

It may be possible to extend your stay by applying for a Visitor Record or other visas, such as a work permit or a Provincial Nominee Program (PNP) if eligible.

Conclusion

Moving to Canada as a digital nomad is an exciting choice for you if you want a balance of career flexibility and a high-quality lifestyle. Canada is actively embracing remote workers especially tech experts from around the world. Hence, making it easier for digital professionals to spend time in Canada without the need for a traditional job offer from a Canadian employer. By understanding the requirements, logistical aspects, and other important factors discussed here, you will be well-equipped to make the most of this opportunity.