A US Citizen can work remotely in Canada. To work in Canada, a US Citizen must obtain a work permit or a work visa and be aware of the tax implications.
The Ways of Getting a Canadian Work Permit as a US American
There are a few ways an American can obtain a work permit to work in Canada. Below are some methods:
The Methods to Get a Work Permit when Working for a Canadian Employer
Though Canada and the United States share a border, working in Canada as an American can still be challenging. For starters, you’ll need to obtain a work visa. The good news is that there are a few options available, so you should be able to find one that suits your needs.
Temporary Foreign Worker Program (TFWP)
The TFWP is the most common way for Americans to obtain a work visa for Canada. You must have a job offer from a Canadian employer to be eligible. The employer will also need a Labor Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC).
Labor Market Impact Assessment (LMIA)
An LMIA is required for most work visa applications. It essentially proves that there is a need for a foreign worker in the specific occupation being applied for and that no Canadians are available to fill the position. The process can be complicated, so it’s best to have your Canadian employer handle it.
Provincial Nominee Program (PNP)
The PNP is another option for Americans looking to work in Canada. You must have a job offer from a Canadian employer to be eligible.
The province you’re looking to work in will also need to nominate you for the program, so PNP is suitable for US citizens who know which Canadian province they want to work in for the foreseeable future.
LMIA-exempt Work Visas
There are a few types of LMIA-exempt work visas which do not require a Canadian employer to obtain an LMIA. These include:
Intra-company transferees: If you’re working for a company with offices in the US and Canada, you may be eligible for an intracompany transfer visa.
NAFTA professionals: If you work in one of the following professions, you may be eligible for a NAFTA professional visa. Check out Canada.ca’s list of eligible professionals here.
Make Sure You Have the Proper Documentation and Visas to Work in Canada
Make Sure You Have the Proper Documentation and Visas to Work in Canada
If you’re moving to Canada, one of the first things you’ll need to do is apply for a Social Insurance Number (SIN). Your SIN is a unique nine-digit number that identifies you for employment and benefits. You will need it to work in Canada or participate in government programs and services like healthcare.
To apply for a SIN, you must provide proof of your identity and status in Canada. You can apply for a SIN in person at a Service Canada office or online if you already live in Canada with a valid work permit. Once you have your SIN, protect it like your credit card or other personal identification.
The Best Cities to Live and Work Remotely in Canada
According to WorkMotion’s global index study, these are the 10 best places in Canada to work remotely, based on various factors such as remote working compliance, cost of living, civic infrastructure and liveability.
- Montreal, Quebec
- Toronto, Ontario
- Vancouver, British Columbia
There are also multiple locations you can choose from across the country, as the job can be done remotely. However, following the criteria below will help weed out the bad from the good.
Research the Cost of Living in the City You’ll Be Working in
The cost of living varies widely from city to city, so it’s important to find out as much as possible about the place you’ll be calling home. Here are a few things to consider when researching the cost of living in a new city.
Housing
The cost of rent or a mortgage is often the most significant expense for Canadians. Make sure to factor in the cost of housing when budgeting for your move.
Transportation
Transportation costs can add up quickly, whether you’re driving or taking public transit. Be sure to account for these costs when budgeting for your move.
Groceries and Dining Out
The cost of food can also vary widely from city to city. If you’re on a tight budget, you may want to cook at home rather than dine out often.
Quality of Life
Make sure the area you’re considering has a good quality of life. This includes things like the crime rate, the schools, and the amenities.
Weather
Consider the areas has the weather that you can tolerate throughout the year. Weatherspark’s interactive tables and maps provide detailed temperature, precipitation, and more information for multiple countries, like Canadian cities.
Types of Remote Jobs in Canada for Us Citizens
There are many remote jobs for US citizens in Canada. According to Statista’s work arrangements, the following industries anticipate the highest growth in work-from-home jobs.
- Professional scientific and technical services
- Information and cultural industries
- Finance and insurance
Find more statistics at Statista
Is Remote Online Notarization Allowed for US Notaries Working in Canada?
Is remote online notarization allowed for US notaries working in Canada? This question arises due to the increasing popularity of remote online notarization and working from home. US notaries are typically authorized to perform notarial acts only within the boundaries of their respective states. However, the rules regarding notarial acts can vary between jurisdictions, and it’s important for US notaries working in Canada to familiarize themselves with the local regulations to ensure compliance.
Tax Implications for US Americans Working Remotely in Canada
It is important to note that this article is for informational purposes only and does not constitute tax advice. For specific information on your tax situation, please consult a tax professional.
The Tax Determinations For US Citizens Working Remotely in Canada
Whether or not you are considered a resident of Canada for tax purposes.
If you are a US citizen and earn income from employment in Canada, that income is subject to Canadian taxes. The amount of tax you pay will depend on your tax bracket and the type of income you earn. Below you will find more details on these topics.
US Companies with US Employees Working Remotely and Living in Canada
If you are a US employer with employees living in Canada, you may have to withhold and pay Canadian taxes on their behalf. The tax withheld will be a refundable tax credit to the employee when they file their income tax return.
Tax Residency
Tax Residency determines which country has the right to tax your income. The Canada Revenue Agency (CRA) considers you a factual resident of Canada if you keep significant residential ties in Canada, even if you live or work abroad.
If you are not a Canadian citizen but have been living in Canada for some time, you may still be considered a factual resident and be required to file a Canadian tax return.
Factual Residents or Deemed Residents in Canada
Factual Residents of Canada
These are subject to Canadian income tax on their worldwide income, regardless of where they reside or earn their income. They can claim the same deductions and tax credits as other Canadians.
Deemed Residents of Canada
This applies to residents who have stayed in Canada for less than 183 days in the year. They are considered residents of the country where they have a permanent home. If you maintain significant residential ties to the United States, you may be regarded as a resident there and not in Canada.
Permanent Home: where you have your family, belongings, and other ties. This is usually where you live most of the year, even if you are away for school, work, or vacation.
Significant Residential ties: These can include a spouse or common-law partner, dependents, a home, personal property such as a car or furniture, social ties such as membership in clubs or religious organizations, and economic ties such as a job or business.
183 Days Rule and the Canada-US Treaty
Under the Canada-US Treaty, if you are a citizen or resident of the United States, you can spend up to 183 days in Canada during 12 months and still be considered a non-resident for tax purposes.
This is often referred to as the “183-day rule”.
The days do not have to be consecutive and can be spent on multiple trips.
However, days spent in Canada for purposes such as vacation, education or medical treatment do not count towards the 183-day total.
If you exceed the 183-day limit, you will be considered a resident of Canada for tax purposes and will be required to file a Canadian tax return.
The US Department of The Treasury has a technical explanation of this rule in this pdf document.
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