Anna Ambroszkiewicz, a Polish passport holder and self-proclaimed citizen of the world, has embraced the lifestyle of a digital nomad. This lifestyle allows her to live in various locations around the world for shorter durations. Currently residing in Bansko, a small town in the Bulgarian mountains, she enjoys the flexibility to go hiking during the day and work in the afternoon or evening. Ambroszkiewicz is intrigued by Canada’s plan to introduce a visa specifically for digital nomads, as she has heard from others in the community about the country’s stunning natural beauty. She expresses her desire to visit Canada and engage in activities such as snowboarding. However, the high cost of living in Canada poses a major obstacle. A digital nomad is an individual who earns a living primarily online from any remote location of their choice, without settling down in one place for an extended period. Usually changing locations every few months or a year, digital nomads enjoy the freedom and flexibility to work while exploring the world.
Recently, Canada’s Immigration Minister Sean Fraser unveiled a series of initiatives aimed at attracting top talent in STEM fields. As part of this broader strategy, the government plans to introduce a special visa for digital nomads. According to Fraser, this strategy will allow foreign employees to work in Canada for up to six months, live in local communities, contribute to the local economy, and potentially even seek employment with Canadian employers. However, the details of the program, including tax regulations and property ownership for digital nomads, remain unclear. The Immigration, Refugees and Citizenship Canada (IRCC) spokesperson confirms that the government is currently developing a policy to position Canada as an attractive destination for digital nomads. Working with provincial and territorial governments and other stakeholders, they aim to determine the benefits of extending the stay of digital nomads beyond six months as well as the eligibility criteria for the digital nomad visa, including requirements for private health insurance and minimum income levels.
Nevertheless, Canada faces several challenges in attracting digital nomads. One such challenge is determining the appropriate tax scheme for this group. Currently, if an individual spends 183 days in Canada, they are considered a resident for tax purposes and may be subject to taxes on their global income. The Chartered Professional Accountants of Canada clarifies that international tax treaties aim to minimize double taxation between individuals’ country of residence and their country of source income. If digital nomads exceed the 183-day threshold in Canada, they will be liable to pay taxes on their entire worldwide income. Additionally, it is still uncertain whether digital nomads will be allowed to own property in Canada, as restrictions on foreign buyers have been recently implemented.
Therefore, potential digital nomads are advised to seek professional advice to navigate the tax regulations and property ownership laws. This uncertainty surrounding real estate and longer stays raises concerns regarding rising housing costs in certain communities. For instance, locals in Tofino, a popular tourist destination, worry about escalating rents and believe digital nomads may not be a suitable fit if the housing shortage for workers continues. Moreover, factors such as car dependency and limited public transportation options in Canada may deter some digital nomads.
Ultimately, the success of Canada’s digital nomad visa program will depend on how it addresses these challenges while providing benefits for both communities and nomads themselves. Ambroszkiewicz points out that a longer-term visa could appeal to “Slow-mads,” who prefer spending extended periods in each location. Kraemer believes that the new visa will make Canada a more appealing destination for nomads, as they value knowing which countries welcome their lifestyle. Nevertheless, Canada’s greatest advantage lies in its breathtaking natural beauty, as most visitors end up falling in love with the country.
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