DIGITAL NOMADS WISHING TO STAY IN CANADA

Under current Canadian immigration rules, digital nomads may still live in Canada and work remotely for up to six months at a time as visitors, without requiring a Canadian work permit. The key factor remains the legal interpretation of “remote work”.

Before determining whether to admit a foreign national to Canada as a digital nomad (rather than as a traditional tourist or visitor), under the recently updated instructions, border officers will closely assess several factors, all of which should be supported by satisfactory documentation:

• Foreign Income: income must be earned entirely from sources outside of Canada.
• Remote employment: work must be performed exclusively for a foreign employer or involve providing services solely to clients located outside Canada.
• Financial stability: Applicants must demonstrate sufficient financial resources to support their stay in Canada. This may include pay stubs, employment contracts, bank statements, proof of assets.
• Intent to depart: It must be clearly established that the individual intends to leave Canada at the end of their authorized stay. This may be supported by a return airline ticket (for airport entries) or proof of temporary accommodations or an expiring reservation when entering at a land border (such as hotel bookings, lease agreements, or Airbnb reservations).

The key factor evaluated by Canadian border officers is whether the remote work performed for a foreign company constitutes entry into the Canadian labour market. There has always been a grey area as to what exactly this refers to.A commonly referenced rule of thumb is: could a Canadian worker be hired and paid to perform this same work physically in Canada? If the answer is yes, there may be a higher risk that the activity could be interpreted as unauthorized work. Even unpaid volunteer work may, in certain cases, be considered unauthorized work if the services provided could otherwise have been performed by a Canadian citizen or permanent resident for compensation.

The key legal principle to remember is that foreign nationals cannot work for a Canadian employer, nor provide services directly to the Canadian market, without first obtaining the appropriate Canadian work authorization.

For those wishing to remain in Canada as digital nomads beyond the standard six-month visitor period, an application for a Visitor Record must be submitted to IRCC before the expiry of the authorized stay in order to request an extension.

If you plan to remain in Canada for a longer period, it is important to understand your legal rights and obligations, particularly with respect to immigration, taxation, and other fiscal compliance requirements.

It is also important to note that time spent in Canada as a digital nomad does not usually constitute Canadian work experience and, therefore, does not count toward eligibility for Canadian permanent residence programs.

Depending on your individual circumstances, it is strongly recommended that you seek advice from qualified professionals, such as an immigration lawyer, certified accountant or fiscalist to ensure compliance with all applicable requirements.