🇨🇦 Moving to Canada: tax, residency and cost of living

Key facts

Top income tax

53.53%

Corporate tax

26.5%

Capital gains

26.8%

Wealth tax

No

Inheritance tax

No

Cost of living index

67

Safety

8/10

Internet quality

8/10

Visa-free destinations

182

Foreigners can own property

No

Residency in

0 months

Citizenship in

0 years

Taxes

Canada taxes residents' worldwide income progressively: federal 14% to 33% plus provincial tax, in Ontario with surtax and Health Premium reaching a combined top rate of 53.53%. Capital gains are taxed on 50% of the gain (the proposed increase to 66.67% was scrapped in March 2025), and there is no wealth, inheritance or gift tax, though Canada settles unrealised gains on death and emigration.

Residency and visas

Canada has one of the most structured immigration systems in the world: Express Entry selects via a points system (CRS) on age, education, work experience and languages, with permanent residence within six months for a high score. There are also Provincial Nominee Programs, the Start-up Visa for entrepreneurs and family reunification; citizenship follows after three years of residence.

Property ownership

Non-resident foreigners generally cannot buy residential property until 1 January 2027: the Prohibition on the Purchase of Residential Property by Non-Canadians Act has been extended to that date. Permanent residents and temporary residents meeting conditions are exempt, and commercial property falls outside the ban. There is no annual national property tax, but there is a municipal property tax and, in some provinces, a speculation or vacancy levy.

Cost of living and quality of life

Canada consistently ranks high on quality of life, safety and education, with public healthcare (albeit with wait times) and a strong rule of law. The downside: harsh winters, high housing costs in Toronto and Vancouver and large distances. English and French are the official languages, and Western Europe is a seven-to-nine-hour flight away.

Passport and mobility

The Canadian passport ranks high on the Henley index in 2026 (around 7th) with roughly 182 visa-free destinations, including visa-free China since February 2026. Naturalisation is possible after just three years of physical presence within a five-year window, and Canada accepts dual nationality, making the passport a realistic and valuable end goal.

Residency and visas

• Express Entry (federaal, puntensysteem CRS): Federal Skilled Worker, Canadian Experience Class en Federal Skilled Trades; hoge score = uitnodiging voor permanente verblijfsvergunning, doorgaans binnen ± 6 maanden
• Provincial Nominee Program (PNP): provincies nomineren kandidaten voor eigen arbeidsmarktbehoeften; nominatie geeft grote CRS-bonus richting permanente verblijfsvergunning
• Start-up Visa: permanente verblijfsvergunning voor ondernemers met steun van een aangewezen investeerder/incubator en voldoende talenkennis; geen vaste minimuminvestering, wel commitment van de designated organization
• Gezinshereniging (sponsoring): Canadese burgers en permanente residenten kunnen partner, kinderen en (via lottery) ouders/grootouders sponsoren voor permanente verblijfsvergunning

Why people move to Canada

• One of the world's strongest passports

  The Canadian passport gives access to roughly 182 destinations without a prior visa and sits around 7th worldwide. Canada recognises dual nationality and naturalisation is possible after just three years of physical presence, so it is a realistic second passport alongside your current one.

• Structured immigration system with fast PR

  Through Express Entry and the provincial programs, permanent residence for qualified applicants is well plannable, often within six months. Entrepreneurs have the Start-up Visa; the whole path is points- and criteria-driven rather than discretionary.

• High quality of life, but honestly: high tax

  Canada offers safety, strong institutions, nature and public healthcare, but it is a high-tax country: the combined top rate in Ontario is 53.53% and residents are taxed on worldwide income. For anyone wanting to lower their tax burden, Canada is more a country to leave than a destination, unless quality of life and passport outweigh the rate.