Welcome to the resource page for Canadians moving back from the USA! Here you will find a ton of resources and tips from other Canadians specific to your move from the U.S.
The main Moving Back to Canada resource page has links to a full set of resources for you to access, so be sure to check it out as well!
Returning to Canada from the United States can be a smooth process, with only a few wrinkles to be careful with. Having the world's longest undefended border certainly makes us similar in culture and trusting of each other in many ways, despite the occasional family disagreement.
Some of the commonalities between Canada and the U.S. that returning Canadians can rely on:
Some of the differences between Canada and the U.S.:
Shirley Farrell shares her insightful story of moving back to ON from Nevada:
I finally made it back to my native Country of Canada. The city of Cambridge in the province of Ontario. With two dogs, and two cats it was not a really easy drive from Nevada...but we made it! 6 days on the road...about 2300 miles. I brought rabies vaccination papers signed by the vet for each of my animals to give to the Canadian Border Crossing Agent. (she was very nice). We had the cage covered with the two cats in it, but she didn't ask to see inside the cage.
We have been in town for about a month, (December). Thrust ourselves into the beginning of winter, but we really like the change. A little bit of a culture shock when it comes to the prices of things...more expensive than Las Vegas. We'll get used to it. My schnauzer loves the snow, he wants to go outside all the time. It was so hot in Nevada last summer, and the heat never seemed to really go away even in November...it was still 75 degrees. We like the cold...so much healthier.
There are many resources here for job seekers and people over 55, which is what we are. I'm looking for a job until my retirement date 3 years from now. I already made some work contacts. So many places to walk here, without having to worry about being a victim of crime. We didn't bring any of our furniture...but we've managed to find used items with the help of my son, and everyone is so generous when it comes to giving things away that they no longer need. Glad I saved my gloves and scarves: One really needs them here.
Canadians are a helpful bunch and very friendly. They love their coffee too...Coffee and doughnut shops everywhere. Tim Horton's for one. Lots of little family owned businesses. Quite a bit of culture and great food. We walk almost everywhere because we live downtown. America was kind to me, but there is no place like home!"
My only other thought is that when Canadians move back to Canada, they should embrace the winter and not hide from it...makes it much easier.
Thank you, Shirley, for sharing your experiences and insights! (Please share your ideas, considerations, and experiences relating to returning to Canada from the USA!)
Many Canadians are moving back for the purpose of retirement.
For this reason, I created a dedicated Retiring in Canada resource page to compliment this "USA" page.
On the Retiring in Canada page you will find resources and tips covering the whole process of preparing for and making the move back to Canada to retire. I created it in response to the growing number of returning Canadians who are retiring back to Canada not just from the U.S., but also from Australia, UK, Middle East, Hong Kong, Thailand, and Singapore.
The health care system in Canada is quite different the U.S., as you most likely know.
Understanding these differences is important if you are retiring to Canada, have chronic or worrying health concerns, or have medications you wish to ensure continuity of when you move back to Canada.
Key differences include how you access health care, how elective procedures are handled, and the general philosophy towards health care.
Because of the number of questions I have received from clients relating to differences between the U.S. and Canadian health care systems, I have created a dedicated resource page to help Canadians returning from the U.S. understand these differences and to answer frequently asked questions:
Health Care in Canada - How Canada's health care system is different from the U.S. system.
Most Canadians returning from the U.S. consider buying real estate before they arrive or soon after. And for many good reasons, including the strong USD which in comparison to the CAD gives you a 30% bonus as of the writing of this.
Moving back from the U.S. gives you some very specific advantages over Canadians moving from other countries:
However, there are also real differences between the U.S. and Canadian real estate markets and how to go about researching and buying property in Canada. And you may not have purchased a property recently in the U.S. or in Canada, so the process can feel quite uncertain. To help with this, I created a dedicated "Buying Real Estate in Canada" resource on this site:
Buying Real Estate in Canada - A resource for Canadians living in the U.S. or abroad.
As well, I have a free monthly newsletter that can help you keep up to date on what is happening in real estate in Canada. It is part news and part educational topics that cover a range of topics of concern and interest to Canadians:
Note: The home page of this web site is the main resource for general logistics considerations. This page contains USA-specific resources and suggestions.
If you find the planning overwhelming, the Moving Back to Canada Planner / Checklist organizes the steps into an editable check list format.
Emily T. from her return to Canada from the U.S.:
In order to forward to international addresses, you need to fill out a paper form at a US post office. US post office employees may tell you (as they did me) that you can do this all online, but they are INCORRECT. The online form only works for changes of address within the US, which is obviously not helpful. For international relocations you need to get the paper form in person, and if you fail to do this before leaving for Canada you'll have to write a letter to your formerly-local US postmaster and hope he or she is helpful.
If you have any way to open a Canadian bank account in advance of your move it's going to make your life a lot easier. When you open a new bank account, the first check deposit you make into it may not actually be accessible to you for a period of time (may be up to a month depending on the bank) so if you can get this out of the way before you actually need to use the bank account it will be more convenient. Consider depositing cash instead of a check if you can, as this will be available right away. Also note that it will take 2 weeks to get any checks for a new account, and depending on your city, you may be asked for post-dated checks to pay your rent, so this can cause some issues with renting an apartment. And, the sooner you open a bank account in Canada, the sooner you can start building up a credit rating which will make it easier to get a credit card right away when you arrive. If you don't have a bank account until you arrive, you probably won't be able to apply for a credit card until you've paid a few bills/received a few paychecks, in other words, a month or more. If you'll be in that situation, be aware you'll need to keep using your US credit card for a month or more and ensure you have funds to cover it still in the US.
You'll need to get a new mobile phone number in Canada, which means switching out your sim card from the old phone. Remember that nowadays your old phone number will be tied to all sorts of online accounts, such as your bank account, and you'll need to log into all of them and update your phone number before the old one stops working, otherwise if you forget your password or need phone verification for some other reason, you won't be able to do this. Also, there is a big difference in mobile phone plans so it's worth doing some research on the best deal depending on where you live. If you'll be in a big city, some of the smaller, newer companies like Freedom mobile offer excellent deals with unlimited texting to US and Canadian numbers which may be worth checking out as well as the "big name" providers.
Thank you, Emily, for sharing your useful logistics thoughts!
Scott shares the challenge he has had exchanging his Florida driver's license for an Ontario one:
Well we are here in our home country and having some issues that you should be aware of.
You were good enough to tell us to make sure that we got driving records and we did exactly that.
We went today to exchange our Florida License for Ontario licenses and hit a solid brick wall.
The Drive test facility would not process our request unless we produced the envelope the driving records came in. Well first ours were electronic and there never was a mailed copy. Secondly the state of Florida will only mail a copy if requested by mail to the state capital and there is a 30 day processing period PLUS mailing it to Canada. Likely a two to three month period in total.
Please make your future clients aware of this bizarre requirement.
Thank you, Scott, for sharing your experience and wise suggestion to be proactive and organized for your driver's license exchange! Since 2018 the situation seems to have been a bit streamlined, but please heed Scott's suggestion to be proactive in getting the paperwork you need before coming back to Canada.
Because Canada and USA are connected by great road systems, moving your goods can be done quite easily. Coming across the Canadian border is pretty straight forward. Here are some tips:
There are four types of movers available to you:
You are pretty safe with "top-tier" movers because they have a reputation to uphold and are in the business of being professional. It is the second group, "Professional movers", where the challenges can happen and you need to do your research. I found this great article by Consumerist (The publication arm of the highly trusted non-profit Consumers Reports - Consumer Union), which goes into some detail and provides great resources for choosing a moving company in the U.S.:
How to Protect Yourself from Getting Scammed by Bad Movers
Ann shared her U-Haul move experience:
We're self starters and while our move to the US was a corporate transfer, our return was self funded and thrifty. Husband drove a U-Haul truck containing all our possessions; we handled vehicle exporting (from US) and importing (to Canada) ourselves without professional help. It can be done! Here are a few things that come to mind.
Moving by U-Haul
On the U-Haul website you can find affiliate businesses that offer services such as packing, loading and unloading. We did all our own packing but used the website to hire affiliate movers for loading and unloading. For a long distance move, the van needs to be properly loaded to keep everything safely in place. The Atlanta loading crew (Nimb Moving) was amazing!
We printed labels with big numbers and stuck them on each packed box and item. We filled a spreadsheet as we packed, entering on each row the item number and a short description of the contents. We later added an estimated value for each item, then printed off the spreadsheet and attached it to our BSF186 form. Canada Customs praised the quality of this documentation. When we arrived in Victoria, most of our stuff went into storage while we stayed with family and waited for our house to sell in the US and subsequently found a house locally. The packing inventory turned out to be invaluable when we had to go into storage and find things we needed on a couple of occasions, and when we eventually moved to our new home. Movers would say "73?" and the person holding the list would say "dining room!"
Blackball Ferry from Port Angeles to Victoria
On the recommendation of your website [see contribution below for recommendation], we entered Canada via the ferry from Port Angeles. US Customs in Port Angeles and Canada Customs in Victoria were both very pleasant. US Customs in Port Angeles will process a vehicle export on any sailing of the Coho (at least, this was true when we came - readers should always check current information). This is not true at Peace Arch on the mainland, where they only do vehicle exports during certain office hours.
Thank you, Ann, for sharing your experience!
Emily T. shares her experience of engaging moving services for her 2017 return to Canada:
I was really disappointed to find out how very UN-helpful many of the moving companies I contacted were. Several didn't bother to ever get back to me, others required repeated follow ups just to get a quote out of them. I am guessing they prefer to work with corporate clients on larger profit moves, and aren't that interested in individuals, but it was no less frustrating. I ended up finding a company called "My International Movers" (http://myinternationalmovers.com) which had good ratings and excellent responsiveness, and was far and away more helpful than anyone else I contacted (even companies other people had recommended to me).
Thank you, Emily, for sharing your experience!
Moving less than a container load (LCL) of belongings back to Canada from the U.S.? George V. moved to Victoria, BC and shares his story of receiving his pallet of personal belongings:
It turned out to be fairly easy to receive the pallet. I received a phone call from Canadian Freightways that they had my pallet in their bonded warehouse, and I could come by and pick-up the paperwork. I took the paperwork over to customs house along with my list of goods to follow. The customs officer checked items off the list and then stamped the paperwork, which I took back to the warehouse. The sufferance warehouse fee was $97.00 for one pallet (which included a 48 hour storage time period). After that I could have contacted UPS freight about delivering it to my house. With all of the pallet being able to fit into my vehicle, I just took possession of it at the warehouse and drove it home myself.
What I would look into for any possible future shipments is to see if there is a price difference for just having it shipped directly to the warehouse vs. having it shipped to the house. Might save a bit of money that way.
Thank you, George, for sharing your story!
Marilyn shares her experience of using professional movers for her move back to Canada:
I moved back to London, Ontario, Canada after 42yrs living in the states. I found the move went very smoothly. I had professional movers, we had all the documents in order, basic moving inventory sheets. I was told to go to the London airport to customs, my movers had to go to secure warehouse, they faxed over my copy of documents within 10 minutes I was given the clear and my movers were back on the road again, it was simple as 1,2,3.
Thank you, Marilyn, for sharing your story!
Lynne P. shares her experience of moving back to Canada through Victoria:
Looking for a great place to cross the border from the US to Canada (in BC)? I highly recommend taking the Coho ferry from Pt. Angeles to Victoria. Total time for us to go through the entire "entry" process (myself, my husband, our mover and moving van, 2 cats, 1 dog was 45 minutes from the time we got off the ferry until we drove out of the Customs area with all our papers stamped. oh, and it really helps to have your B4 and B4a forms [now BSF186 and BSF186A] completed ahead of time (be as detailed as possible) - and of course, have all the papers relevant to your vehicles ready to show US customs and then Canadian Customs. Btw, if you have your vehicle papers all in order (pink slips and other required papers), the US Customs at Pt Angeles don't make you show those papers 72 hours in advance (which it says on the forms). Highly competent and pleasant Canadian officials (and the guys in Pt Angeles with whom we dealt with for the vehicles were great too)
Thank you, Lynne, for sharing your experience!
Bringing your dog or cat with you to Canada can be very straightforward...or not. The only paperwork you need is a veterinarian's rabies clearance certificate. If you are driving across the border, you simply present the certificate, if asked. Easy.
That said, if you wish to fly your pet to Canada, each airline has their special instructions and processes, and because your pet is going over the border, you will need to plan this a bit more carefully if they are flying unaccompanied.
Emily T. shares her pet repatriation experience:
I brought a small cat with me, and decided that rather than drive for days with a miserable cat, it would be better to fly and get it over with in a few hours, then ship the car. Air Canada has direct flights from most major US cities and they allow pets under a certain weight (15lbs I think?) to be taken into the plane with you as carry on. They recommend a soft-sided pet carrier (I used the "Jet Sitter Luxury Soft Sided Pet Carrier" https://www.amazon.com/gp/product/B01MEI0BTG with some "Dry Fur Pet Carrier Insert Pads" in case of accidents) and this fits under the seat in front of you. You will need to get a rabies vaccination certificate from your vet to bring with you (customs will need to see this when you arrive) and both my vet and the airline recommended AGAINST any tranquilizers. Warning: when exiting the US, the TSA made me take the cat out of the carrier and walk through the metal detector holding the cat. If your pet is likely to try and escape (and this is a terrifying area for a pet) you may want to put them in a collar/harness in advance.
Thank you, Emily, for sharing your experience!
Returning to Canada from the U.S. with your vehicle would seem to be a simple exercise, right? After all, large numbers of vehicles that are sold in USA are actually made in Canada! And we have had a long-standing automotive pact and now a free-trade agreement with America, right? And we have almost identical driving systems - cars, roads, etc!
Unfortunately, despite the seeming logic of Canada and the U.S. similarities, bringing your American purchased vehicle back with you (called "importing") is a process you have to work through step-by-step and diligently.
In summary, you follow these general steps:
If you plan to import your USA purchased vehicle into Canada, I suggest doing your research and planning early in your moving process. Here are three links that can help you do your own vehicle export & import:
Take your time to really understand the process to ensure it works smoothly for you!
Note: If you bought your car in Canada, moved to the U.S. and then are returning with the same, originally Canadian-purchased vehicle, you have it much easier. Check the same links noted for details on how to handle your situation.
Ann on "exporting" their vehicle from the U.S.:
If taking a car with you to Canada, not only does it have to be imported into Canada, first it has to be exported from the US. To do this yourself you have to get an EIN from the IRS, then use the EIN to apply for an account on the CBP ACE portal, then you can use the ACE account to submit an AES Direct application to export a vehicle. You can do all this online and it's not as bad as it seems but the process takes a few days. You have to fax the vehicle title and ITN (a shipment code issued by AES) to the US border crossing you plan to use, 72 hours before arrival. Instead of using the ACE system yourself you can pay a broker to get the ITN for you, but you'll still have to fax US customs and present yourself and the vehicle.
Thank you, Ann, for sharing your experience!
John M. on using a broker for his vehicle:
Having just returned to Calgary from Denver after 42 years in the US, I would STRONGLY recommend using a broker for exporting an auto from the US, as well as any import into Canada of business assets - in my case, a very expensive vfx workstation which I transported in the car to keep my personal goods-to-follow and business assets separate.
I'm at heart a DIY kind of guy and I waded into both processes and related paperwork with lots of coffee, the best of intentions and a strong belief that I could learn what I needed as I proceeded. I quickly realized that I was in quite over my head.
I was absolutely delighted to discover that the fees charged for exporting a car from the US (in my case USD ~80) and importing business assets (in my case USD ~140) were WELL worth the amount of time and brain damage I saved myself.
When I pulled up to Sweetgrass/Coutts at the Montana/Alberta border, I knew the paperwork was correct, and the border control folks knew the paperwork was correct too. I'm sure they were just as relieved as I was that it wasn't going to turn into a cluster.
The company I used was Cole International (there are many others) - which operates on both sides of the crossing. I found them all to be professional, courteous and very responsive, even for my one-time, "small scale" jobs.
Paul, many thanks for your site! It helped me prepare, well in advance, for one of the most difficult, anxiety-producing things I have done in a long, long time.
I am now almost completely unpacked (good thing - my lower back just filed suit against me) and am simply thrilled to be living again in my home town and my beloved "home and native land."
In these times, it is a privilege, an honor and a blessing to be Canadian!
Thank you, John, for sharing your experiences, suggestions, and feedback! And like you, I have a deep appreciation for the gift of being Canadian!
Emily T. on shipping her vehicle:
I decided to ship my car up rather than go through the hassle of selling it, and was initially recommended "Snowbirds Auto Connection". The form on their web site apparently goes to an unanswered void, so I had to call up to get a quote. Possibly this should have been a warning to me. They gave me a good quote and a choice of two dates, 1 March or mid to late March. As I wasn't flying up till the 7th I chose the later date and left my car behind with a friend for pick up, only to have the company suddenly flake and inform me they didn't plan to do a shipment in March or April. Since at that point I'd already left the country, this was pretty concerning, and the responsiveness of the company was very disappointing. Ended up cancelling my contract with them and finding another, "US Canada Auto Transport" (https://uscanadaautotransport.com) who were prompt, competitively priced, and very helpful. Possibly worth mentioning I had also contacted a third company "Ship Your Car Now", but their pricing was several hundred $ higher and they were extremely slow to respond and required 2 follow-ups to even get a quote to me.
Thank you, Emily, for sharing your vehicle shipping experience!
James B. shares his experience:
We passed through the land border at Port Huron. We had followed the instructions for exporting our vehicle and received an email directing us to the customs office on Water Street in Port Huron. Completely wrong! The actual office is located on the bridge to Canada. Access is off Pine Grove Ave, either directly, or via the nearby duty free shop. Drive onto the bridge and stay to the far left. Do not proceed to the toll booth. Stop on the side on the road near some Jersey barriers. Walk around a railroad style gate and into an unmarked office. You may need to ask for directions - tell them you want to export your vehicle. After we found the right office, things went smoothly. An officer took our car's title, looked up some info on his computer, walked out to see our car and stamped the title. We were done! The experience was illuminating. Although the US government threatens large fines if you do not formally export your vehicle, they make it nearly impossible to actually do it. No signs of any kind point you to the correct place. And they provide inaccurate (wildly inaccurate) directions to the responsible office.
Thank you, James, for sharing your experience!
Karen shares here experience of moving her vehicle back:
I just moved back to Ontario after 30 years in the US. Please be aware of the new laws regarding any vehicle you are bringing across the border. The Canadian officials were great and very helpful. The American side is another story. Make sure you check out their website and be prepared to hire a broker for the paperwork they don't allow individuals to do any of the exporting by themselves. Give yourself lots of time, it took me three weeks before I could get mine across and there are only certain crossing that tend to this part of the journey. I had the paperwork they were very picky about it. Good luck.
Thank you again, Karen, for sharing your experience!
Marilyn (from above) also shares her experience with importing her vehicle into Canada from the U.S.:
The confusion came when I received 3 different direction how to apply and were for my car plates and licenses.
Your drivers license comes from testing office, Ontario has understanding with most of the states, if you do not have any validation for 2 years or more on your record. You're not required to take either written or drivers test. Cost $72 for 5 years.
Have documentation from your insurance company stating how long you have been with the if there had been any violation
Have your complete drivers history, you can down load that from the computer. In Indiana it was the department of DMV
Insurance, check around, I was quoted $165 a month for my Ford Escort for full coverage. Another company estimate was to $85 a month Finally I received some what reasonable quote $65. Full coverage for my Escort in Indiana $45 a month for full coverage.
I have been shocked by what the car insurance and Cable service here, but that's another story. Ontario requires $1 million dollar coverage.
Car safety and emission check certification. Emission cost set by Ontario $35, safety check average additional $75 totaling $140. Ouch, my car passed the emission test, but, they ding me on my head lights covers were too dull due to age.
It was never suggested to me by my mechanic they should be replaced. I had tiny rock chip that had been in my main windows, for years but they won't accept it. One glass repair place said, the whole window needed to be replace, cost $300. The chip was 1/4 of dime in size I called around and had it repaired for $100
Once every thing was repaired I had to go back in my Safety check shop and have the repair check again, once passed I had to take the certification to Service of Ontario where I paid for my plates another $86
Take all certification, provide of plates purchase, owner ship papers from Service of Ontario back to your insurance agent so they can document your car is licensed and plated.
Extra note, I was told at Canadian customs at Port Huron, the U.S. government is requiring all cars entering Canada for new residents with cars 10 year old or newer must be notify the U.S. department of transportation of your move and have your car register, by faxing over a form 72 hours prior to moving, You fax to department of transportation and you pick up a stamped received formed at the port of entry. Since my car was older than 10 years I was able to by past that requirement.
Thank you again, Marilyn, for sharing your experience!
There are a number of legal aspects to consider when moving back to Canada from the USA. For some returning Canadians this may be the most complicated step in their planning, or at least the one that they need to think through carefully. Dual citizens in particular will find this important. While a lawyer is not normally needed to handle most of the legalities involved in a straight-forward move back to Canada, you may wish to engage a lawyer if your situation is very complex in the areas of pensions, wills, child custody, business ownership, etc. Here are a few legal considerations that may be of value to Canadians returning to Canada from the U.S.:
The following stories are the best was to get a sense of some of the possible legal aspects involved in returning to Canada from the U.S.:
Emily T. on the 1040-C form, Canadian SIN, and dormant bank accounts:
Tax form 1040-C: departing aliens
If you're not a US citizen then you're expected to fill out this form before you leave, and you have to take it to an IRS office for an IN PERSON interview. These need to be scheduled at least 2 weeks in advance so be sure to phone up and book the interview MORE than 2 weeks before your leaving date. You need to bring a copy of your plane ticket, last 2 years of tax returns, and your passport with visa (check the web site for exact requirements as presumably they may change with time). This was actually really anticlimactic for me, and not even the IRS agent knew why I had to do this or what the form was for. They stamp your form with an official seal and the instructions say to keep it with your passport, but nobody actually looked at it when I left, so I'm still a bit mystified what the point was.
Dormant SIN number:
If you've been out of the country for an extended period of time, your SIN number will have been put into a dormant state in Canada. You'll need to go to a Service Canada office to let them know you're back in town. You'll need to bring ID (such as your passport) and an ORIGINAL copy of your birth certificate. They will NOT accept a certified copy. If you don't have this, they can be ordered online through Services Canada in the province you were born, but you'll need to allow at least 5 business days and preferably more, so plan ahead.
Dormant bank accounts:
Canadian banks seem to be more draconian than most about putting bank accounts into a 'dormant' state if you don't have any transactions on them for a year or two. If you left a bank account behind, check with your bank well in advance of your return (ideally, check this in person if you visit before the final move). If they're dormant, you may not be able to transfer funds into them in advance, which you may want to do.
Thank you, Emily, for sharing your experiences and clear guidance!
Ann on Social Insurance Numbers going dormant:
We had no idea that our SINs were dormant" until we tried to check into our CPP eligibility, after we'd been back in Canada for over a year. We had filed income tax returns during this time, but Service Canada's records are separate from CRA. You have to visit a Service Canada office in person with photo id, SIN card, birth certificate (if Canadian born) or citizenship certificate (if not Canadian born), marriage certificate or other documentation re name change (if not using birth name). We were told to expect a document by mail in about 30 days, after which we'll be able to apply for PACs (Personal Access Codes) and finally get My Service Canada online accounts. We would have gotten on with this sooner had we known about it. Apparently a SIN is made dormant after 5 years of inactivity.
Thank you, Ann, for sharing your experience!
Chris G. shares this tip:
If you have wills and trusts set up in the US, you may want to talk to your US attorney about estate planning before you leave US. Additionally, you should talk to a Canadian attorney about estate planning once you get there.
Thanks, Chris G. for this tip!
Rosalynn V. shares her experience and tips from their experience:
My husband and I have just retired after 17 years working in the US, and have returned to Victoria, BC. We're glad to be back, but the transition was rockier than we had expected. Your website was helpful, so I thought I would share a couple of tips for other returning Canadians.
1) You must "Abandon your Permanent Residence Status" once you return. The form, I-407, is readily available on the USCIS website. It tells you that you can mail the form in, along with your card. However, it is very hard to find WHERE to mail it. So, here it is: Former LPRs residing in Canada should mail it to:
Via regular mail:
DHS/USCIS Mexico City
P.O. Box 9000
Brownsville, TX 78520
Via UPS, DHL, FedEx, etc.:
DHS/USCIS Mexico City
225 S. Vermillion Ave.
Brownsville, TX 78521
We were a bit anxious about entrusting this to the mail. We couriered our forms and cards, and heard back within a week by email, and received the formal acknowledgement within ten days. Much easier than doing it at a port of entry or at the consulate.
I would also like to alert your readers to the fact that, if you are receiving CPP benefits, US Social Security will reduce your SS benefit by up to half of your CPP benefit. This will also affect any spousal benefit. This ruling also applies to any pension derived from income on which you didn't pay Social Security taxes - that is, any foreign pension. CPP reports to Social Security. Social Security calls this ruling the Windfall Elimination Prevision, and I urge your readers to read about it on the SS website. We had no idea that this treaty even existed, until we were informed by SSA that our combined benefits were to be reduced by nearly $300 US per month, and that we have to pay back the overpayment. A very nasty shock, with serious consequences for our financial comfort.
Thank you, Rosalynn, for sharing this valuable information!
As mentioned earlier on this web page, Canada and the U.S. have a tax treaty that is well documented, well understood by our governments, lawyers, and accountants, and has the benefit of lots of experience - it has been around for awhile.
For most returning Canadian clients I work with, preparing their tax context for a move to Canada is not challenging. It can be confusing and concerning, however, until they understand the actual facts of their situation. Adding to the confusion can be stories they read online or hear by word-of-mouth that something horrible will happen to them. This is simply sensationalism and usually outright misinformation. I always suggest we discuss all aspects of their financial situation openly and clearly, where I can explain for each part what the impact of their move will be (usually it is little or no impact!) Clients are relieved and empowered when they get unbiased and clear information on their situation.
If a client's personal financial situation is complicated, with business assets, complicated personal trusts, etc. to consider, I will sometimes refer my clients to a trusted cross-border tax accountant. There are lots of tax accounts and lawyers in major Canadian cities who have experience with American-Canadian tax challenges. Unfortunately, there are only the rare few who are experts, act professionally, and communicate well with clients.
Recommendations of cross-border tax accountants
I have a few I can recommend based on my personal interactions with them and the experiences of my clients. However, if you are currently working with an accountant you are extremely pleased with and can recommend, please let me know!
See the new Professionals For Your Team page on this site for a listing of recommended cross-border tax accountants and other professionals trusted by returning Canadians!
Suzanne shares her insights on Canadians renouncing U.S. citizenship for tax reasons:
US citizens continue to renounce in record numbers. Currently, 75% of the people renouncing US citizenship live in Canada, the UK and Switzerland. There is now nearly a year long wait to renounce at the US's Toronto consulate, in spite of the renunciation fee being recently raised to US$2,350! Because of the US's unique tax laws, Canadians with US citizenship find it necessary to do this to completely extricate themselves from the US tax system and re-establish themselves as Canadians with the same opportunities as their fellow Canadians (which includes saving for retirement). However, what many Canadians returning home don't realize is that Green card holders must also make a proper exit from the US tax system by submitting a DHS Form I - 407 in order to remove themselves from the US tax system.
Here are some of the considerations currently facing Canadians leaving the US:
Thank you, Suzanne for generously sharing your thoughts!
Ann shares a Roth IRA tax tip:
In order to avoid Canadian taxation of Roth IRA withdrawals, you have to send a one-time letter to the Canadian Competent Authority as detailed here:
Thank you, Ann for generously sharing your thoughts!
Chris G. shares his planning tips from his move back to Canada from the U.S.:
- Get all of your health records from all of your providers before you move.
- I had my parents switch their utility bill to my name a few months before my arrival (I'm staying with them until I move into my Calgary house which is rented out). This will help me start building credit. [Editor's note: Be careful with this as under some circumstances this may trigger you being considered resident for tax purposes as of the start of the utilities switch date]
- I'm setting up a mail service that will allow me to see online any mail that was delivered to my old address. The company I am using is US Global Mail.
- Download as much transaction history from all of your US accounts before they become unavailable.
- Set up cross border banking. I have a Chase account in US and a TD Canada Trust in Canada. I opened a TD Bank account in the US so that I can flow funds back and forth between TD Canada trust and Chase. TD Bank and TD Canada trust make it easy to flow funds. They are my windows to both countries banking systems.
- Get a credit check done in the US before you leave (eg Experian, Equifax, etc). This may be useful.
- CRA has a form that determines residency status. I had to fill this out because for 2 months I worked from Canada (while I was there buying a house and setting kids up in schools). They determined that I was a "non-resident". This helped me in doing my tax returns.
- Keep your US bank and a credit card for at least a year after your move. I plan to keep mine for at least a year.
- If you're going to be self employed, incorporate your company in advance, set up corporate bank accounts. I did all of this 3 months before my move date. I can now hit the ground running when I get there.
- Understand what you will be doing with any US retirement plans. You may be able to leave a 401K plan in tact. You may have to roll over to an IRA. Either way this requires research and should not be left until the last minute.
- Vehicle. I purchased a vehicle last year (in my moms name). I have a family of 6 so every time I visited Calgary I had to rent a vehicle. This cost me $2000 every time, so I bought an old minivan for $8000 that I used during my visits.
Thank you, Chris for generously sharing these great tips!
In the past Canada and the U.S. had very separate banking and investment systems. Slowly but steadily they are becoming more integrated now.
It is important to separate investments from banking, however, as they operate under different laws and are at different levels of integration between Canada and the U.S.
Investments are tightly controlled on both sides of the border and it is not easy to simply move your investments to Canada. Worse, the legal system makes is so that if you are a Canadian citizen moving back (not a dual-citizen) you must move your investments. A forced situation. Here are a few companies that can help you make an investment move across the border:
A very nice development in recent years is cross-border banking. Major Canadian banks now have solid banking services that allow you to have a full range of U.S. and Canadian accounts and investment assets, accessible online.
There are two options to consider: First, there are Canadian owned banks in the U.S. that allow you to have dual-banking systems for easy movement of your funds or if you will continue to have a presence in the U.S. after you move back.
An example: RBC Bank Georgia.
Second, most banks in Canada now have strong USD accounts that you can send your money to from the U.S. with no foreign exchange cost. Full details:
One assumption has been that when you move back to Canada you will simply move your funds to CAD. A nice innovation in recent years has been the USD bank accounts available in Canada from all major banks. If you plan to travel in the U.S. after you move back to Canada, or simply want to receive your pension in USD, for example, and not convert it, you can have a USD bank account that is accessible online or through many Canadian ATM's, even! Yes, you can withdraw USD from some Canadian ATM's now.
This USA-specific page covers investments and banking topics and suggestions that Canadians moving back to Canada may find useful. Be sure to check out the dedicated Taxes, Accounting, and Banking page for more general coverage of these topics as well as more depth on some topics applicable to not only those returning to Canada from the U.S., but also for those moving back from all over the world.
As of early 2019, exchanging your U.S. dollars (USD) for Canadian dollars (CAD) means you are now getting lots of colorful Canadian bills for your green U.S. bills. The exchange rate continues to be favourable, despite a slight drop in the USD.
When I was teaching overseas in the late 1990's, one Canadian dollar only got me $0.70 cents American. When I returned to Canada, the exchange rate had shifted so much just in the last few months before I returned that I lost C$14,000 on the exchange rate change. Enough to buy my family a nice little new car at the time.
The good thing? I had "hedged" some of my money in Euros, which went up dramatically at the time, meaning I ONLY lost $14,000 (a silver lining to my cloud)
Some foreign exchange considerations:
Hedge, hedge, hedge: Mix your holdings up between U.S. dollars, Canadian dollars, Euros, Swiss Francs, Yen, CNY (RMB), etc. Hedging is always the safest bet if maintaining your capital is your priority.
For a more in depth look at foreign exchange, including how to send money from the U.S. to Canada and save hundreds or thousands of dollars in doing so, see my page "Moving Back to Canada: Foreign Exchange"
This is likely the most important consideration of all, particularly if you have lived in the USA for many years.
"The grass is always greener on the other side of the fence".
This saying implies that you are only seeing the bright side of a move - not what you are giving up. Or that you have "rose-colored glasses on", seeing on the good aspects of Canada that you want to see because of a situation you are dealing with in the U.S. The truth for most people is that things are good in Canada! We feel generally safe, have a respectful and supportive government, and a civil society. On the other hand, it is cold and dark here, people are quite risk averse, and we don't like change.
When I went overseas the grass was definitely greener. When I came back to Canada, it seemed greener, but not as green as when I went overseas. My perceptions of things had changed - my values, goals, and passions were different, and raising two children simply cost a lot of money in Canada - money that seemed harder to earn in Canada than overseas.
Perhaps a really careful consideration of your lifestyle preferences, considerations, and aspirations will keep your thinking clear on moving back to Canada.
Some thoughts on lifestyle:
Kirsten shares her experience of moving her family back from the U.S. in this inspiring story:
I just found your website today and am enjoying it. I thought I would share our experience. We are a Canadian-American family that relocated to Canada from the U.S. almost a year ago. We are also a unschool/homeschooling family with 4 children.
I (the wife), was born and raised in Winnipeg but moved to the U.S. in 1995 for a job (physical therapist) and subsequently met and married my American husband and we resided in the States for the first 14 years of our marriage and had all of our children there. I became a citizen of the U.S. and am therefore a dual citizen. My children are also dual citizens.
About a year and a half ago, we were living in Idaho and things were looking quite bleak. My husband had lost his business, then a short lived job in California in 2009 and had been unemployed for a year and a half at that point. I was working at a job that was getting progressively more stressful while I longed to be home more with my children.
Not seeing the U.S. economy improving any time soon, we decided to make a move to Canada where it looked more likely that my husband could find work in his field. I was offered a job in Saskatchewan so we started the immigration process for me to sponsor my husband and soon after, we headed to Sask. He was granted a 6 month visitor permit at the border so he was able to accompany me and the kids to Canada while awaiting his PR application to be processed. 5 months later, he was granted PR status and within a few WEEKS, he had landed a great job in Calgary! So, we made another move to Calgary and we have been here almost 6 months now.
I am not going to say this process has been easy! We found the immigration paperwork very complicated and time consuming but we managed to get through it without a lawyer, thanks in big part to the Canadavisa online forum where we received many answers to our questions. And of course moving a family of 6 twice in a 6 month period was not fun either....BUT we feel all of the hard work, expenses and hassles we had to overcome were so worth it because right now my husband has his dream job that he has hoped for years to find! We definitely feel that our quality of life has improved, our working conditions in Canada are better and even though some things do cost more here (like taxes, gas and groceries), we have noticed that other things tend to cancel that out (like not having to pay for costly health insurance premiums and deductibles, and receiving the monthly Child Tax and Universal Child Care benefits and homeschool funding).
We also find Alberta to be very homeschool and family friendly and we have met some great people so far!
I am a little nervous about doing our taxes in both countries for the first time this year but I am sure we will get through it fine, and once I do, I plan to sit down and do a full cost of living comparison between the 2 countries for our particular situation.
We are definitely happy we made the move to Canada!"
Thank you, Kirsten, for sharing your experiences and insights!
Received from a Mrs. S. McDougall, moving back to Canada from the U.S.:
Found your site interesting and informative. We've immigrated to the U.S. from Canada 3 times since 1983. Each time, a trip to the consulate to get a 'green card'. Each time, more expensive and difficult.
I would advise anyone who is moving back to Canada from the U.S. to first consider getting their dual citizenship if they qualify. (you do not have to give up your CDN Citizenship to do this.) If you should ever change your mind, and want to move back to the U.S., it will be a lot easier, I'm sure. And less expensive.
The worst part about moving back to Canada? We had to give up our green card in order to get Canada health coverage. (yes, there was the 3 month wait in NB) And, it took awhile to get used to the GST! Yikes! ...
Finally, for those who move back for health coverage, well, your mileage may vary. IF you can FIND a doctor, then hopefully you will get a GOOD doctor. My husband ended up with a hip replacement at 47 because of incompetency. Pulled muscle indeed!! And when we were moving to the US the last time, we could NOT find a doctor in the capital city of NB. After calling every doctor within an hour\'s drive, I finally had to BEG a doctor to just give us the immunizations that were required, they didn't have to take us on as new patients. I couldn't believe it. In a big city! Anyway, I've heard of other 'horror' stories regarding healthcare in NB, but I'm sure we have them here too [in USA].
OTOH, my mother's double mastectomy went as well as could be expected and the visiting nurses were exceptional. I guess it just depends on where you are and who your doctor is, if you can find one.
Hopes this adds to your perspective.
Sincerely, Mrs. S. McDougall
Thank you, Mrs. McDougall, for sharing your insights and suggestions!
Marilyn shares her perspectives on costs in Canada:
I found that cable service in the London [Ontario] area is out of sight and I have been told all through out Ontario its very high. I say shop around to the smaller independent service companies.
It was been a battle with Rogers service from the start, I called prior to the move and was given a estimate, well with in my budget The salesperson came to my residence here in London, we again went over my budget, he was here for 2 hours!! Then I received email of contract, I was shocked by the monthly amount. It was $60 more than I was given, my computer speed is about 1/2 of what am used to and they service in blocks not unlimited computer time or down loads. I have been more than disappointed and shocked.
After several phone calls I though things were straighten out, only to receive a bill for over $496. I called immediately, and it seemed someone had coded the entire contract wrong.
Over all I have found cable, TV and phone bundling, internet service much higher than the leading cable service in the U.S. (Comcast) I have been customer of them for 21 years, in several states, and had excellent service and NO limitation of down loads or computer use.
I can't stress enough to shop around for every purchase and service.
Thank you, Marilyn, for sharing your story! And I concur with Marilyn's advice: "Shop around for every purchase and service when you return to Canada!"
Please share your ideas, considerations, and experiences relating to returning to Canada from the USA. I will post them here as help for others. Along with a credit to you will be a big thank you on behalf of the many people you will be helping!
Latest update to this page: May 2019