Moving Back to Canada from the USA

Important News:

Here are some important updates for Canadians moving back from the U.S.:

• There are no restrictions at this time for U.S. citizens and legal residents who wish to enter Canada via land and air.
• Canadian citizens can move back and bring their immediate U.S. citizen family member(s) to Canada to be sponsored for Canadian Permanent Residence (PR) status after they arrive or if the PR applications are currently being processed by IRCC but not approved yet.
• This is not the easiest time for you to move back to Canada due to economic and health care system challenges. I have created an article that may be of value as you consider returning to Canada in 2024: "Should we move back to Canada in 2024?"
• The mandatory 3-month waiting period for Ontario OHIP (health insurance) coverage was temporarily waived in March 2020 and continues to the latest update of this resource. For all other provinces who require a 3 month waiting period you must purchase 3-month "Visitor to Canada" health insurance Note: The Ontario waiver will likely be rescinded in the near future so keep checking on this as you get close to your move back to Canada date. The Ontario government web page on this subject.
• Due to changes by the Canada Border Services Agency (CBSA) if you are using a full-service moving company to move your household belongings to Canada you must now either meet the truck at the moving company's local agent warehouse near you in Canada or at a Customs office between the border and your place of residence. When the truck arrives you will be notified which one it is. You can no longer "pre-clear" or assign clearing to a third party. Note: This is not a major issue, but a significant process change that makes your direct involvement in the clearing of your belongings at the time of their arrival a requirement now.
• 2024 Update: The following may no longer be in effect. If you can find the latest status please let me know if this has changed:
  
  For those in NY State *only* and wanting to bring their vehicle(s) to Canada. As of 2020 vehicles to and from NY State could no longer be exported from or imported into the State. However, this changed late in 2020 and it is now possible, but onerous, to export your vehicle.
  
  In summary, if you are the owner on title of the vehicle you have to *physically* bring the vehicle and paperwork to the CBP vehicle export office at a border crossing 72 hours ahead of time, wait for 3 days there, and then complete the "export" process.
  
  Of course, if you plan to *never* bring that vehicle to the U.S. (i.e. on a visit) it is possible to drive it directly into Canada (not doing the export) and import it. This is not recommended but it can be done.
  
  Details of the new NY State (only) export process, from the Buffalo crossing CBP office:
  
  "Please be advised. U.S. Customs and Border Protection no longer has access to New York State Department of Motor Vehicles Records. Your vehicle / equipment is registered in or is being sold from N.Y. Because of this you / your company are required to physically bring the ORIGINAL title or bill of sale or certificate of origin to the Buffalo Vehicle Export Office where it will be held for 72 hrs... [+ complete an MV-15 form ahead of time, ++...]
  
  The ONLY exception to this process is if you are the original owner of this vehicle and your name appears on the title of the vehicle being exported and the vehicle is lien free. If you fall under this exception then you can export normally .... You will still have to physically bring in the title / bill of sale to the Buffalo Vehicle Export Office 72 hrs. in advance of your export date."
  
  (Thank you to H. Chopra for updating me on this and for sharing his interactions, quoted here, with the CBP Buffalo Vehicle Export Office!)

If you have important news affecting other Canadians, comments, feedback, or suggestions please let me know! Thank you!

Welcome to the resource page for Canadians moving back from the USA!

Here you will find an array 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!

Topics & Resources

• Introduction
• Health care in Canada
• Buying real estate in Canada
• General move logistics
• Moving your furniture & belongings
• Bringing your pet to Canada
• Bringing your vehicle back to Canada
• NEW! Working for a U.S. employer in Canada as an employee, contractor, or independent business
• Retiring in Canada
• Legal considerations
• "Should we get U.S. citizenship before moving back to Canada?"
• Pensions, Investments, Banking, and Taxes
• Foreign exchange: Moving USD to CAD
• Lifestyle considerations
• NEW! Adjusting to life in Canada - You moved back to Canada...and life is not working out well (opens a new web page)
• Your tips, suggestions, and feedback?
• Professional help for your move back

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Introduction

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 our countries 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:

• A tax treaty that clearly spells out tax implications for a Canadian citizen or dual U.S/Canadian citizen returning to Canada. There are so many thousands of people moving back and forth every year between Canada and the U.S. that there is a solid body of precedence and regulation to allow for a clear move tax-wise.
• Agreements relating to the movement of professional workers, crossing borders, communications, banking, air traffic, etc. All this means a generally smooth physical and logistical move.
• Similar and inter-connected systems such as telephone, electricity, internet, banking, and even such things as aligned time zones.
• Cultural icons - both countries have Starbucks, McDonald's, KFC, etc., for example.

Some of the differences between Canada and the U.S.:

• Different judicial systems and mind frames toward safety, security, justice, the military, etc. Simply crossing the border going either way can quickly make clear the differences in perspective.
• Different cultures and related attitudes toward work, social support, immigration, diversity, human rights, freedom, etc. These differences may not seem profound on the surface but they do have a very big impact on how people treat each other, get along, and what the definition of a "civil society" is. This last point is a very important one right now as citizens in the U.S. are grappling with what kind of society they want for their country.
  
  And the same question is starting to come up in Canada due to the policies, laws, rules, and mandates the federal and provincial governments have created in the last two years. And it can be a surprise how people in Canada view each other and what "human rights" and "freedom" means to a majority of Canadians who no longer care about these core principles and values. Just to be clear: After the events of 2020-2022 Canada is by no means the same country you may remember. Different from the U.S. and with major problems of our own that go very deep in our culture and governments.
  
  Strong polarized beliefs and positions on human rights and freedom are never a recipe for a civil and safe society, either in the U.S. or in Canada. If they are not resolved in the near future Canada may permanently become a very different country than most of us remember it to be.
• Different systems for getting some important things done, such as health care, government services, and handling legal situations. For example, tying into the different cultural aspect is the idea of "suing someone". Many of my clients are surprised that liability insurance is not a core part of how business and society operates in Canada. People simply do not sue each other in Canada as often as they do in the U.S.
• Cultural icons - we have Tim Hortons...and yes, there are some in the U.S., but they are not like OUR Tim Hortons. ;-)

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Heather Jackson shares her experiences of moving back to Canada from the U.S. in a blog called "The Great Escape, Eh?"

We met over coffee in Kelowna, BC to chat about her journey of figuring out life in Canada. Like for many others it has been a non-linear path to getting settled. You will find a growing number of insightful, thoughtful, and interesting stories which you may find helpful and can prompt new or deeper considerations on whether to move back to Canada, why, and how:

The Great Escape, Eh?

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Shirley Farrell shares her insightful story of moving back to ON from Nevada:

Thank you, Shirley, for sharing your experiences and insights! (Please share your ideas, considerations, and experiences relating to returning to Canada from the USA!)

Topic List | Your thoughts? | Professional Help

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The Health Care System in Canada

The health care system in Canada is quite different from that of 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.

Special notes:

• As of Q3 2024 it is important to understand that as a whole the Canadian medical system is not functioning well. BC and ON are the most challenged provinces. A true emergency will be treated promptly. However, acute issues, elective surgeries, and ongoing chronic care can be alarmingly delayed in terms of attention. Primary care ("family doctors") and specialists are increasing hard to obtain support from even if you are already a patient of a physician, for example. At this time I am recommending to those moving back from the U.S. who have serious health concerns that they take extra care in preparing their move from a medical care perspective. See the link below to the dedicated Health Care in Canada resource on this site for more information.
• Many returning Canadians stock up with 3 months medication in the U.S. prior to moving home to cover them for the 3 month waiting period for health care in several provinces (ON and BC are on this list). A good thing to do if you have full medical coverage in the U.S.
• If you are not covered in the U.S., bring your prescriptions with you to Canada. You can get a doctor here in Canada to issue you local prescriptions in exchange for your U.S. ones because you can't use U.S. prescriptions in Canada.
  
  Medications are usually much more expensive in the U.S. than in Canada. If you pay for your own medications partly or fully then check out the prices of medications in Canada before you leave the U.S. You may save a TON of money when you move back by buying what you need in Canada rather than stocking up in the U.S.
• Costs of uninsured services in Canada: Most people are able to secure 3 month "Visitor to Canada" insurance to cover them for serious emergencies during the 3 month waiting period in most provinces in Canada. However, if you have significant pre-existing conditions you will not be able to obtain this insurance. So what do you do if your coverage lapses when you leave the U.S. but you have to wait 3 months here in Canada for public coverage to begin?
  
  Some good news!
  
  You can pay for services yourself for 3 months and it won't bankrupt you! Yes, you read this correctly: You can normally actually afford doctor visits, medications, and even surgeries in Canada on your own! Some actual costs quoted from returning Canadians who were in this situation - they had to get emergency care in Canada during the 3 months of not being insured:
  
  "Torn calf muscle and injured hamstring" - cost of care: $1000 (Canadian dollars!)
  
  "Emergency appendectomy" - cost of surgery itself: $310 (other costs extra)
  
  "Shattered wrist. 3 x-rays, 2 hospitals, 2 casts." - cost of all this: $650
  
  "Cost of a GP visit for my daughter." - cost of the visit: $45
  
  "Emergency hospital treatment, including ambulance" - cost: $1200 ("$40,000 in the U.S.")
  
  "A vial of insulin" - Cost: $32 ($300 in the U.S.)
  
  "...doctors visits were $85 for walk in and $110 for a specialist. So didn’t break the bank either."

Because of the number of questions I have received from clients relating to differences between the U.S. and Canadian health care systems, I 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.

Topic List | Your thoughts? | Professional Help

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Buying Real Estate in Canada

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 25-30% 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:

• You can easily visit Canada to research properties, arrange a purchase, and do the legal paperwork.
• With some Canadian lenders you can use your U.S. credit history and income as the basis for a mortgage, unlike people coming from other countries.
• There are differences in how real estate is purchased compared to the U.S. but our markets are similar enough to make the process at least understandable. In contrast, much of the rest of the world works quite differently, including such simple things as people calling a "condominium" a different name: "apartment".
• You can easily set up a bank account in Canada for your purchase if you don't already have one from before you left Canada to move to the U.S.
• Working with real estate professionals is easier as you are only an inexpensive phone call or Zoom meeting away and you are in the same range of time zones.

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's part news and part educational topics that cover a range of topics of concern and interest to expatriate Canadians in the U.S. and around the world:

Topic List | Your thoughts? | Professional Help

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General logistics

This section of the USA resource focuses on general move logistics. Note: The home page of this web site is the main resource for general logistics considerations and is very comprehensive. This page contains USA-specific resources and suggestions only.

If you find the planning overwhelming, the Moving Back to Canada Planner / Checklist organizes the steps into an editable check list format.

Before diving into the logistics considerations, here are a few considerations from Emily T. on her move back. Why I share this feedback right up front is because it nicely illustrates a few principles that if followed will make your move much more smooth and easy:

1. Research and question everything. Many government, bank, phone company, and even moving company employees you talk to do not know the answer to questions relating to moving to Canada or will unknowingly give you incorrect guidance. If you hear uncertainty or a "no" that you don't trust, question further with another person or resource. For important considerations, seek confirmation from more than one source.
2. Be proactive. What can you do ahead of time, early in the process?
3. Take ownership of everything to do with the move and get help. This is your move. You need to be in the driver's seat. However, you may be busy with work, children, and other things in your life. Understood. If this is your reality, get help for your move planning and logistics. Be organized and delegate. Don't try to do it all yourself.

Thank you, Emily T., for sharing your practical principles!

Bill Rose shares his experience and thoughts:

Thank you, Bill for sharing your thoughts!

More thoughtful feedback from Emily T. after her return to Canada from the U.S.:

Thank you, Emily, for sharing these useful logistics considerations!

Topic List | Your thoughts? | Professional Help

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Moving your furniture and belongings

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 and even was in 2020 and 2021 when there were more larger complications in the world. Here are some tips:

• If you are having your goods professionally moved to arrive after you do, you need the same form as everyone else in the world moving back, called a "BSF186" form entitled "PERSONAL EFFECTS ACCOUNTING DOCUMENT" (Settler, Former Resident, Seasonal Resident, or Beneficiary)" (formerly: "B4"). This needs to be completed before you come over the border and announced at the border or airport if you are flying in. Your moving company will provide you with their inventory document, which you attach to the BSF186 as part of what you present to the CBSA Customs Officer when you arrive.
  
  If you are bringing all your belongings with you in a uHaul truck, for example, you can use the BSF186 form, but you can also just have a full inventory listing made up on Microsoft Word or Excel and that will suffice.
  
  Suggestion: Always bring your household belongings with you or have it come behind you - not ahead of you. For tax reasons, you will likely be considered a resident of Canada as soon as you or your goods arrive - whichever arrives first.
• How to complete the BSF186 form:
  
  Canada Customs wants to see a list of what you are bringing in to ensure that you are NOT bringing in the following:
  
  
  • Restricted items, such as ivory and guns.
  • Controlled items, such as wine collections.
  • Commercial items for re-sale.
  And they want to see any new, expensive items, such as a brand new C$4,000 camera or a new $10,000 Persian rug listed clearly because for these items you may have to pay taxes and duties if you have lived in the U.S. for less than 5 years (more than 5 years and new household item purchases are exempt).
  
  "Do I write individual items? Or groupings? And what values do I write for each item or grouping?"
  
  Here are examples for you to follow. The key is to use general groupings and nominal (garage sale) or zero values for all your goods, except brand new expensive items (less than 6 months old that may be subject to tax and duties):
  
  2 boxes of Books - $200
  4 boxes of Kitchen items - $300
  5 boxes of Clothes - $200
  Living room furniture - $1000
  Television - 3 years old, Sony XBR42H, serial no. ________ - $200
  ...
• Special Note: As of 2020 CBSA began requiring you to be part of the "clearing" of a professional move. This means that when the mover's truck arrives at the border you must either meet the truck there for final clearance, at a Customs office between the border and where you live, or at the "customs bonded warehouse" of your moving company. You can no longer "pre-clear" the shipment or assign the clearing to a third-party (the movers), which used to make the move quite easy. This added step means you have to be ready when the truck comes to the border.
• Consider using a U-Haul trailer or U-Haul truck for your move. They allow one-way moves between Canada and USA that can save you a lot of money and potential hassle over a professional moving company.
  
  Vern and Gwen M. give some feedback on this:
  
  

    Just a quick note to thank you again for your advice and your web materials. Among many, one piece of advice we took was to move ourselves. We hired a U-Haul truck and crossed the border a week ago. Given we did a good job of documenting our truck manifest and the goods to follow, the Customs stop was less than 10 minutes! Couldn't have gone more smoothly. We saved a ton of time and a ton of $ too. We're back in Chicago loading a second truck and know that the next (& final) border crossing trip will go great. Once we get settled, I'll be sure to write a testimonial story on your website. Meanwhile thanks again for your help.

• You might even choose to buy a trailer! John M. suggests you might even want to buy an inexpensive trailer for the move. Further, if you only have some boxes to move he notes that the inexpensive U.S. Postal Service might mean you can mail your boxes to a city just on the other side of the border (in the U.S.) and go over and pick them up. This could save you some money, if you don't mind a bit of complication in exchange for financial savings.

Choosing a moving company for USA to Canada moves

General note for those considering a "big name" moving company: The big name moving companies - Allied, United, Mayflower, etc. use local agents in both the U.S. and Canada. This means that if you are in Sante Fe, NM for example, you are dealing with a locally owned and operated moving company that functions under the umbrella of the larger big name company. Usually things will go smoothly with cross-border moves but sometimes the local agent in the U.S. will not know how to do cross-border moves and they may tell you things that are out of synch with what their head office knows to be true. In any event, be prepared early to carefully screen your local agent so that you are sure they will be able to do a "clean" move and refer to their head office if there is any question. If not? Get another moving company. One story in 2023 that illustrates this issue:

[Major Moving Company Name] – the move coordinator in Houston [local agent] was somewhat clueless about moving to Canada. I had to inform and correct her on several occasions. She would not have allowed us to move our mattress but would have allowed us to move oils, seeds, spices, other food! She didn’t know that sending a truck to Victoria involved a ferry trip and so the night before the loading began, she called to charge us another $1,300 for the ferry fee. Our truck driver was seasoned and a wonderful guy. However, he had done this “so many times” that he thought he knew the best way for us to clear our goods through customs. Allied told me one thing, he told me another. Fortunately I also called the storage facility in Victoria (Greaves) [the local agent] who told me the best way to do this, so everything did work out fine in the end. Greaves has been very good to work with.

There are four types of movers available to you:

1. "Top-tier" movers who do world-wide moves and are solid for USA --> Canada moves. They are expensive but generally professional in all aspects and are available wherever you are in the U.S. Top examples: Allied Van Lines, United Van Lines, Crown Worldwide, Mayflower.
   
   Feedback from clients in January 2023: "We hired Allied Van Lines for our move. The move was flawless. They knew exactly what was needed to make the process run smoothly. We packed most of our household items leaving the fragile stuff for Allied. We numbered each box and made a list with the contents and value for each box. Going through secondary immigration at the airport where we declared the goods we had with us as well as the goods to follow, was a breeze. It also went very well when we met our driver at Customs in Ottawa to clear our household goods. We were out of there in less than 15 minutes. The cost of moving our household from California to Ottawa was $30,000. We did not move any vehicles."
2. Professional U.S.-based movers who handle moves within a state or within the whole U.S. and *may* be able to move your household belongings to Canada. They are less expensive than top-tier movers. You find these companies in the city you live in. Be very careful, however, to screen these movers for their experience crossing the border into Canada. Some have experience, but others do not and a lack of experience can mean big hassles for you when their truck crosses into Canada.
3. Local movers who only work within a local geographic area. These are not appropriate for moves to Canada. Some of my clients have tried to use local movers and I have not heard of successful moves using them because they are not set up to understand and manage border crossings.
4. PODS. This is very functional system where they drop off a small shipping container POD at your home, you load it, and then they come pick up the full POD and move it to Canada for you. A few of my clients have used them and it seems to work well. Note: May not serve your specific city/town in Canada. Check out which Canadian locations they deliver to.
   
   And be sure to understand that using a pod will not mean a fast delivery. Quote: "It will be a full month...before I get my things unpacked. Never again."
5. UPack. "You pack. We drive" Make sense and saves you money. Like PODS, above, a great option that may just work for you, but do check first whether they can deliver to your city/town in Canada. And as with the POD system noted above, this may not be a very fast solution.
   
   A positive experience from a client: "UPack worked out nicely for us."

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 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

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Alison Bradley shares her experience moving with UPack:

I used UPack (operated by ABF Freight) and I cannot say enough great things. When I called to book, I was only looking, but the agent was nice enough to tell me that prices were about to increase for summer. So, I booked! Booking then not only secured my truck, it secured it at a much lower rate than I would have paid if I had waited. UPack was easy to deal with, responsive, and hauled my goods across the country and border for me. Everyone I spoke with, from customer service to truck drivers to the folks at the yard were friendly and helpful. I packed up my truck (with a little help from my friends), sent the driver with a copy of my passport and the BSF186 and 186A paperwork and off they went. After my quarantine, I went to customs with my BSF paperwork and passport and the Casual Goods Accounting Document and Form 1 for my car. The customs agent told me I also should have had a Casual Goods Accounting Document for all of my goods that the agent in Port Huron should have provided, but I didn't receive that. Lucky for me, the agent did one up based on my BSF paperwork and I was one again on my way! The agent faxed a release to ABF Freight who was holding my truck and I made arrangements with ABF for the truck to be delivered. The only small snag was that I found out 48 hours before packing my truck that second hand mattresses can only be brought back to Canada if they have been cleaned and fumigated (paperwork required). A definite oversight on my part, but I was able to get it done...and of course no one even asked about it. Oh well, I was prepared!

Thank you, Alison, for sharing your experience!

Important Note: Mattresses imported from the U.S. (only) do not need cleaning and fumigation. The rule that is noted on the CBSA web site is waived for mattresses coming from the U.S. Alison did not know this and perhaps her moving company did not as well. I have personally confirmed this with CBSA and none of my clients moving their mattresses from the U.S. has ever had a hassle.

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Ann shared her U-Haul move experience:

Thank you, Ann, for sharing your experience!

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Emily T. shares her experience of engaging moving services for her 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!

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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:

Thank you, George, for sharing your story!

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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!

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Lynne P. shares her experience of moving back to Canada through Victoria:

Thank you, Lynne, for sharing your experience!

Topic List | Your thoughts? | Professional Help

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Returning to Canada with your pet

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. But generally, flying works well for dogs, cats and even, in the case of one of my clients, a budgie!

Emily T. shares her pet repatriation experience:

Thank you, Emily, for sharing your experience!

Topic List | Your thoughts? | Professional Help

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Vehicle importing - Bringing your car back to Canada from the U.S.

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:

1. Check on the RIV web site to see if your vehicle is admissible into Canada from the U.S. (most are).
2. Ensure there are no manufacturer "recalls" outstanding and that you have a clear "title document" (no liens and not a leased vehicle).
3. "Export" the vehicle on the U.S. side of the border at a CBP Vehicle Export Office.
4. "Import" the vehicle on the Canadian side of the border through CBSA Customs - you pay federal duties and taxes at the border itself.
5. Have the vehicle inspected federally and provincially and any necessary modifications done. Important note: The federal inspection cost is included with the RIV importation fee you pay to the RIV. I have personally witnessed a returning Canadian being asked to pay for it again at a garage that does federal inspections. Do not pay the federal inspection cost twice. The provincial inspection cost is for you to pay, however.
6. Pay provincial taxes, insure, license, and plate your vehicle here in Canada

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 some resources that can help you do your own vehicle export & import:

1. The RIV - Registrar of Imported Vehicles:
   
   The RIV is the official Canadian government mandated agency for the importation of vehicles. You will have to work through them:
   
   http://www.riv.ca
   
   Note: You can phone the RIV and they are generally very helpful! As a privately contracted company that makes its fee from you succeeding in importing your vehicle they have a vested interest in doing whatever they can to help you import your vehicle.
   
   
2. "Importing a car into Canada?"
   
   A nice little visually laid out website with solid text-based resources that explain the process of importing a vehicle into Canada from the U.S.:
   
   "Importing a car into Canada?"
   
   
3. ITN number:
   
   Exporting your vehicle from the U.S. requires an ITN. Here is a bit of feedback from Tony H. on how inexpensive and easy it is to get one:
   
   "Cost me all of 15 minutes and $35 [now USD $50 starting in 2024] for both vehicles to get my ITN online with these guys : Simplified Trade Solutions. Highly recommended - when I registered both vehicles separately on their website, expecting to pay $35 each, they spotted the duplication and put both vehicle on the same form for one price. Impressive for a low cost online service!" (Thank you for the great tip, Tony!)
   
   
4. Exporting a Vehicle from the U.S. and Importing into Canada
   
   Someone posted a set of steps on a Canadian visa site. Note: Their Step 4 says you need a Customs Broker to do your AES filing and for the issuance of an ITN. You do not! You can actually use services such noted above by Tony H. 90+% of returning Canadians get an ITN arranged and do the export and import process by themselves.
   
   Exporting a Vehicle from the U.S. and Importing into Canada
   
   
5. Autocross Vehicle Advisors
   
   If you would like professional support for moving your vehicle back to Canada (a full fee service) a client recommended this firm to me in 2022. I spoke with Melanie myself and can attest her understanding and expertise with more complicated vehicle import situations.
   
   Melanie Hibbert
   Autocross Vehicle Advisors
   Cell: 604-644-7372
   Office: 604-538-6033
   Fax: 604-538-6035
   Email: melanie@autocrossva.ca

Take your time to really understand the process to ensure it works smoothly for you!

Alison Bradley shares her experiences crossing at Port Huron, MI (Sarnia, ON) and doing her vehicle exporting and importing:

I crossed the border in Port Huron, MI. I got my ITN through https://simplifiedtradesolutions.com (thanks for that recommendation - super quick and easy to deal with) and submitted my required paperwork about a week in advance of crossing (I created an RIV account a couple weeks earlier). I was nervous about the export/import process, but it was actually pretty easy and I'm glad I didn't pay a company to do it for me. A few notes: the vehicle export on the US side is in a brown brick building to the left of the bridge. It is before you get to the customs people. I got to the agent on the US side of the bridge and realized I had made an error. The gentleman was nice enough to check my passport, etc. and then allow me to park next to the guard station so I could walk back and complete the export process. The documentation required for export/import was as noted on riv.ca which you link on your site. For export, I showed my title (it got stamped), my ITN number, and the CBP reply indicating they had received my vehicle export info). On the Canadian side, I declared that I was coming back to resume residency and I went into the Canadian customs office with a list of the goods I had in my car, passport, etc. The Canadian agent stamped my title and RIV form and provided me with a Casual Goods Accounting Document (blue and white) noting my car. I did have my cats with me and their certificate showing their rabies vaccination, but was not asked for that. After quarantine, I printed the Vehicle Inspection Form (available in your riv.ca portal) and headed to Canadian Tire which is where the Federal Inspection and Provincial Safety Inspection are done in Ontario. Note: it is Canadian Tire's responsibility to fax the completed Vehicle Inspection Form to RIV. Getting my car registered in Ontario was straightforward as I had an Ontario license and showed proof of my US insurance.

Some feedback from D. Panting on his experience:

We just moved back to Canada from the U.S. Part of that was importing our vehicle. I used your page for directions and wanted to confirm that everything went very smoothly. I used Simplified Solutions (as recommended by one of your other readers) to generate and file the ITN. Using their link to my Port of Entry, I emailed the ITN, Title, and the VIN ahead of time, and when I got there the whole thing went smoothly for both the export and then import. Hardest part was finding how to get in to the U.S. POE without crossing the border! Thanks very much for sharing all this great information!

Be sure to come to the border on weekdays in business hours only! A suggestion shared by C. Morris:

My family and I successfully relocated to Canada last week and your site and planner was a HUGE help.

One piece that almost caught us out was vehicle exporting. A key detail that I found out after digging deeper was that the US Export offices are open 8am to 3:30 or 4pm on weekdays only. We had already booked movers for a weekend so this posed a problem. We ended up working around it by driving up to the border a couple of days before the move to get the export stamp (then turning around to go back to the US which was not straightforward). Not everyone may be within easy driving distance to the border. It might be useful to note the export restriction to weekday business hours in the vehicle section of your site so that people who want to export vehicles in a single trip are sure to plan their crossing appropriately.

Thanks again for creating this valuable set of resources! We’re thrilled to be in Canada now.

A few "frequently asked questions"...and answers:

1. "How much tax and duty will we pay when we bring our vehicle back?"
   
   Answer: The first $10,000 of value in your vehicle is tax free, assuming you use your one-time $10,000 moving back deductible ("credit") for this purpose. You pay GST/HST (depending on the province) on the value above this level. PST may be due in the province you are moving to, but won't be collected as part of importation process. It is collected when you register the vehicle.
   
   The Customs Officer who processes your importation uses their own "black book" value. The value is not publicly transparent before you do the importation, but you can estimate the value of your vehicle yourself using used car values available publicly online and then do a general estimate of what your taxes will be.
   
   Duties may apply depending on where your vehicle is manufactured. If you have a North American Vehicle Identification Number ("VIN") with the first character is one of the numbers 1, 2, 3, 4, or 5, you won't have to pay duties on your vehicle. If your vehicle's VIN starts with a letter "J" (Japan), "G" (Germany), "V" (France/Spain), etc. then you can expect that there may be duties applied to your vehicle when you bring it to Canada.
2. "Can I sell my vehicle in Canada soon after we move back?"
   
   Answer: If you used the one-time $10,000 moving back deductible noted in the FAQ above you have to wait one year before you sell the vehicle. Or you will have to pay the taxes. A client shares his experience of wanting to move back with his vehicle for the ease of moving (versus flying) and then sell it, buying a new Canadian vehicle:
   
   "At the border crossing, we had to pay taxes on the value of the car minus a $10,000 deductible. The problem with the car is related to the $10,000 "deductible" when crossing the border. When taking the deductible, you must wait one (1) year prior to selling the car in Canada. However (and the custom agent did not offer), if you choose to not take the deductible (i.e. pay the tax on the first $10,000 of value of the car), then you can sell it immediately. In the current times, driving is easier than flying (e.g. from the USA). To solve this problem, I had to go to a customs office where they had to create a second, linked, Form 1 and then charge me the extra taxes. After paying the extra tax, I was able to sell the car immediately (as planned) and without problems."
3. "What if I am bringing two vehicles back to Canada from the U.S.?"
   
   Answer: If you are a couple moving back you can get the first CDN$10,000 of both your vehicles' value tax free! This is not clearly explained on the CBSA web site. So I asked them in-person: "The $10,000 [one-time credit towards a large item being imported] is per-person. If two vehicles are being imported by a couple, put both names on the vehicle importation forms. Then the first $10,000 of both vehicles will be free of taxes."
4. "Do I really need to 'export' your vehicle on the U.S. side when you 'import' it into Canada?"
   
   Answer: I visited my local friendly CBSA office and asked them in-person. Their statement: "We don't have anything to do with the exporting on the U.S. side and don't need you to do it for the importing process." was the answer. "However, if you don't export it, and then drive the vehicle to the U.S. with Canadian plates in the future and are stopped by U.S. police, they will fine you."
   
   In other words, do the export on the U.S. side. :-)
5. "My vehicle is older than 15 years of age. I heard I don't have to do the RIV process!"
   
   True. Sort of. Vehicles 15 years of age or older do not go through the regular vehicle importing process with the RIV. That said, there is still some paperwork to fill out when you bring this vehicle to Canada. And note that it must still be on the "approved" list of vehicles that can be imported into Canada, all of which must only come from the U.S. And per the following note from Ross W. in 2022 despite what the RIV might tell you there is still some paperwork to do at the border:
   
   "Your webpage is fantastic and I studied it thoroughly before driving back to Calgary last week with my U-Haul and vehicle in tow. All went smoothly and as expected at the Coutts, AB border crossing. The only way the process could have progressed quicker is if I had filled out the RIV paperwork for my 15yr old vehicle. I called RIV in advance and they said that there would be nothing to fill out as my vehicle was over 15yrs in age from an importation perspective." So if you are bringing into Canada a vehicle such as this be sure to call both CBSA and the RIV to learn exactly what paperwork is needed so as to shorten your border crossing time.
6. "What about insurance? What will it cost me to insure my vehicle when I return?!"
   
   Answer: Please see the "What to do 1 month ahead of your move back" section on the home page of this web site to get details of how to prepare for insuring your vehicle in Canada. A U.S. vehicle insurance history letter and a DMV driving abstract are absolutely necessary for insuring a vehicle at a reasonable rate and changing your driver's license over to a Canadian one!
7. "What if I have a loan on my vehicle? Can I still bring it back to Canada?"
   
   Answer: No. A vehicle with a loan outstanding on it, or a leased vehicle, cannot be imported, licensed, and insured in Canada. Loans must be paid off, liens cleared, and a "clean" title document must be in-hand before it can be imported. As leased vehicles are actually owned by the lessor, not you, you can't import them either.
8. "Can I transfer my vehicle warranty from the U.S. to Canada?"
   
   Answer: Some manufacturers allow this, others do not. Research this with the manufacturer's website and head office in Canada and by communicating with them directly. From Kevin K. in 2024 about transferring his Honda warranty:>
   
   "I was able to transfer the warranty for my US-purchased Honda vehicle to Honda Canada. I don't think they like to advertise this, as finding information on this was difficult and I had to call / email numerous times to get someone to answer definitively. In the end, I was told that I need the documentation below (from Customer Relations at Honda Canada) and I was able to transfer the warranty for my newly-purchased Honda vehicle to Canada. The warranty transfer was completed after we crossed the border but before we performed the Canadian car registration and drivers licensing.
   
   - American title
   - Bill of sale
   - American proof of insurance (expired is acceptable)
   - American driver’s license
   - Recall clearance letter issued by American Honda within the last 6 months. The American Honda / Acura recall website notification is not acceptable"
9. "What if my vehicle has a "rebuilt" or "salvage" title? Can I still bring it back to Canada?"
   
   Answer: Offically, it appears that the answer is "no". However, if you are absolutely insistent on bringing in a U.S. vehicle with such a title, it is possible! Here Marian generously shares her experience of importing her vehicle into Ontario in 2020:
   
   

       Catching you up on the fabulous adventures of Purleen (2015 Prius V)
   
   Wow, it has been a while since I've written about her, yet she has been a cause of intense concern since last summer when I first became aware of the effects of her somewhat checkered past. Oh, and her name is derived from the color listed on Toyota's description of this Prius -- Pearl, not white, but Pearl.
   
   That title stamped 'REBUILT" has meant months of worry -- especially since if you google how to import a car into Canada -- the language of their legal requirements is SO rigid. Here it is in one version, most of the others are similar:
   
   Salvage or rebuilt salvage vehicles can be imported into Canada as parts-only vehicles through a Vehicle Imported for Parts Form Form 3 regardless of the source of the damage. However, once a vehicle has entered Canada on Form 3, it can never be licensed in Canada.
   
   Phew -- as you recall, I tried to get her cleared before actually moving here, but that effort (22 hours driving in 24 hours) was stymied at every turn.
   
   Okay -- most cars brought here just need to pass one test -- to get a Safety Standards Certificate. And that can be done briefly and inexpensively at any Canadian Tire store. But Purleen needed another -- the Structural Inspection Certificate -- because of that "Rebuit" -- kind of like her Scarlet Letter. (!)
   
   So late last week, after I had spent hours of effort to try to wind up my very complicated change of country financial issues -- I had to take on Purleen's citizenship.
   
   I only had a few days because this had to be done before January 24th -- I officially entered Canada on 11/24/19, and the time limit to get her approved was 60 days. I was told if it didn't happen in this time frame, that was it. She would be "undocumented" and deported! :(((
   
   So I went to Canadian Tire, they said they could do the safety standards test, not the other. AND they could not recommend a mechanic for me, that is against the rules. I decided not to do a half assed job -- to look for a place that could handle both.
   
   My first day of calling, after several efforts, I found a guy in London (about an hour's drive from here) who could do it -- but it would take TWO DAYS!!! What?? I told him I would look for someone in Sarnia (2 hours drive) because they had a border crossing and might be more accustomed to this request. If I found no one there, I would call him back and stay over for the 2 days!
   
   I located a shop in Sarnia, the man who answered the phone told me I would have to speak with Fred -- the only guy there who could book this thing. I left my number and waited to hear back. Fred didn't call. The next day, I called again, was told Fred was out, and left my number again. Fred didn't call. That was a Friday -- on Monday, I called again, no Fred, but I asked the man who did answer if this would need 2 days to get completed.
   
   "Oh yes, Ma'am -- we will need your car for 2 days!" Argh! I left my number again and asked for Fred to call back. I was beginning to accept the 2-day requirement, no choice.
   
   Fred didn't call. So I googled mechanics in Woodstock and Kitchener -- finally got a guy who said he knew of a guy in Kitchener, but not the name or number. "Just google body shops, you'll find him! Might be called something like 'Deluxe'." I told him how hard this process was turning out to be, and he responded: "Right, ma'am -- a lot of shops stopped doing them because of the paperwork."
   
   Argh again! I googled body shops in K-Waterloo -- there were a lot of mechanics/body shops with "Deluxe" as part of their name. I finally made one last call -- this one had a Lamborghini on the website, that conjured up all kinds of images of $$$ out the window.
   
   A gruff and accented voice answered the phone with "Jimmy here" -- and I made my request. "Certainly, I can handle that for you. Bring your car in tomorrow."
   
   "Will this take 2 days?" "Oh no, only about 4-5 hours. I'll get it completed for you tomorrow."
   
   WOW! I questioned him again, wanting to be sure we were talking about the same thing. "Yep, I do those all the time. Can you get here by 10:00 a.m.?"
   
   "Yes, I'll see you then. Is there a library nearby?" "Not far, and I'll take you over, no problem!"
   
   Jimmy turned out to be as good as his word. For some reason, he didn't give his last name -- but from the card I picked up in his shop, his full name is Jimmy Minassian, and he is Armenian (I recognized the name from a couple I married years ago).
   
   On our drive to the library, I asked how long he had been doing this work. He smiled and said: "You know, it's been about 20 years now. I get clients from all over the world -- and it's only because I decided that you need to find out what you're good at, then make it work. That's what I did back then."
   
   What a delight! He came back to the library and picked me up around 2:30, gave me both certificates -- and I thanked him profusely. The fee was close to $1,000 -- but well worth it since I could now keep my car (and she's turning out to be pretty accomplished on snow -- very relieved to find that out)!!!
   
   So yesterday, I went back to Service Ontario with all the paperwork, and Purleen is now a Canadian citizen!
   
   I can highly recommend Jimmy's work and attention to detail, as well as his kindness in dropping me at the library to spend the day. And Kitchener is centrally located in Ontario, so if you have any clients with the rebuilt issue, he's your guy.
   
   Here is a link to his website (he omits the last "e" from Delux)
   
   https://www.deluxautomobiles.com
   
   Thanks much, Paul, for all your assistance, big hugs, Marian

   Read More

   
   
10. "What if I am bringing back a vehicle I originally bought in Canada and move to the U.S. with?"
    
    Answer: 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. You still have to export it and import it, but the process is easier as it is exempt of having to go through the RIV process and therefore costs less. Check out the RIV web site (noted above) for details.
11. "My vehicle has been customized. Will this affect my ability to import it?"
    
    Answer: Any clearly visible mechanical or functional body customizations means you cannot import your vehicle. Sorry! It must be "factory original" from a mechanical and body integrity perspective. The federal inspection done in Canada will quickly spot any customizations and this means your inspection will fail.
12. "This is overwhelming. Can I get help?"
    
    Answer: Yes, you can get help with the paperwork and can even have your vehicle shipped for you. See the feedback below for some ideas on this. I also regularly support clients with their "sell versus bring back our vehicle" decisions, helping them understand how to do the importing and when to import their vehicle(s) for their particular situation. This help is part of my professional support services.

Some more great feedback and tips from Canadians who returned with their vehicles:

K. Keenan shares their experience in 2023 moving back to NS specifically:

Heidi Krajicek on her return with vehicles and being organized:

Thank you, Heidi, for sharing your experience and wisdom! "Be patient, don't get flustered with the paperwork, be prepared, have copies and be ready to just take your time at the border : ) " Excellent guidance!

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Bill Rose on his experience with vehicles coming from the U.S.:

Thank you, Bill, for sharing your experience!

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Ann on "exporting" their vehicle from the U.S.:

Thank you, Ann, for sharing your experience!

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John M. on using a broker for his vehicle:

Thank you, John, for sharing your experiences, suggestions, and feedback! And like you, I have a deep appreciation for the gift of being Canadian!

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Emily T. on shipping her vehicle:

Thank you, Emily, for sharing your vehicle shipping experience!

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James B. shares his experience:

Thank you, James, for sharing your experience!

Karen shares here experience of moving her vehicle back:

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.:

Thank you again, Marilyn, for sharing your experience!

Topic List | Your thoughts? | Professional Help

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Working for a U.S. employer in Canada or for U.S. client(s)

Over the years I have occasionally had people ask me if they could continue to work for a U.S. company but live in Canada or continue to help U.S. clients when living in Canada. Then in 2020 it became a tsunami of requests. The questions ranged from "Is it legal to do work in Canada for a U.S. company?!" to "How do I set it up?!"

The answer to both these questions? "Yes!" and "Carefully!"

In summary it is entirely legal to work in Canada for a U.S. employer and to keep working for U.S. clients. You can simply move back to Canada and continue working for 1, 2, or 3 months until you are clear you are going to be set up life in Canada and that this arrangement is going to last with your employer or clients. But by then you must take action to set yourself up in Canada in one of several different legal forms for doing so. These include: A U.S. employee but paying taxes in Canada, opening a Canadian division of your U.S. company, as a contractor, independent business professional, service provider, or even as a consultant/advisor. All these have different benefits and trade-offs.

But this is not something to wait on until you are here in Canada. It is best to get this started and prepared for before you move back to Canada as there are many factors to consider and things to plan for.

I have created a full resource on the topic as it is a big one:

Working in Canada for a U.S. / foreign employer or clients

Topic List | Your thoughts? | Professional Help

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Resources for returning to Canada from USA

Retiring in Canada

Many Canadians are moving back for the purpose of retirement.

For this reason, I created a dedicated Retiring in Canada resource to compliment this "USA" resource.

In the Retiring in Canada resource you will find a pension terminology comparison chart and specific guidance and tips covering the process of preparing for and making the move back to Canada for retirement. I created it for the growing number of returning Canadians who are retiring back to Canada not just from the U.S., but also from Australia, the UK, UAE, Hong Kong, Thailand, and Singapore.

Melanie Lanfear shares her experiences of moving back to BC from the U.S. to retire:

I can’t thank you enough for how much you, and your website, helped me in preparation for the move....it was absolutely life saving!!!

... I have no regrets whatsoever about retirement in Canada, have made great new friends, and am loving life in beautiful South Surrey, BC.

If I were to offer any advice to someone contemplating such a move it would be to start early, be very organized, and make lots of “to do” lists. I probably started 2 years in advance (a luxury not available to most I realize), selling household items, making key financial decisions, liquidating US assets, etc. I ended up shipping my car, and that I probably wouldn’t do again...it’s a LOT of paperwork on both sides of the border, very time consuming and somewhat costly. Other than that, everything went extremely smoothly as I was well prepared.

Again, thanks so much for all you do...it’s an invaluable service, and having the answers to your questions makes the transition back to Canada so much easier.

Topic List | Your thoughts? | Professional Help

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Legal

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.:

• Giving up your Green Cards (aka: "Abandoning Lawful Permanent Resident Status").
  
  I often get the question: "Can I keep my green card when I move back to Canada?"
  
  The simple answer: No.
  
  There are many reasons you cannot keep a green card when you move back to Canada and if you try to keep it can cause you a lot of grief in the future with CBP, USCIS, and the IRS.
  
  Here is how to relinquish your green card:
  
  This is most easily done by *couriering* the I-407 form and your Green Card(s). You can also submit them at a border crossing but this requires a interview and there may be a lineup, both potentially stress inducing. Details and the address, copied from the USCIS web site:
  
  

  ---

  "Mail Form I-407 to the Eastern Form Center.
  
  For U.S. Postal Service (USPS):
  
  USCIS Eastern Forms Center
  Attn: I-407 Unit
  PO Box 567
  Williston, VT 05495
  
  For FedEX, UPS, DHL or other express/registered deliveries:
  
  USCIS Eastern Forms Center
  Attn: I-407 Unit
  124 Leroy Road
  Williston, VT 05495
  
  In very rare circumstances, a USCIS international field office or U.S. embassy or U.S. consulate without a USCIS international field office may allow you to submit a Form I-407 in person if you need immediate proof that you have abandoned your LPR status. The most common need for an expedited application is to apply for an A or G visa. You may also submit Form I-407 to a U.S. Customs and Border Protection officer at a U.S. port of entry."
  
  

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  Suggestions: Use a courier with no signature required. I have received feedback from a returning Canadian that USCIS won't accept the package and it will be returned if you put "signature required". And make sure to make a photocopy of the front and back of your green card and make a photocopy of the completed I-407 form before you send them. Once you receive email notification from USCIS, print that email. And if you plan to travel to the U.S. within 90 days of receiving the USCIS notification, have these three pieces of paper with you in case there are questions at the border/airport until all U.S. computer systems synch with your new legal status.
  
  Caution! See the tax section below regarding the implications of giving up your green card. There are required tax filings when you become non-resident of the U.S. In one situation you must file a form W-8CE within 30 days of expatriating and most people must file a form 8854 with their first tax return after arriving back. The tax penalties can be HUGE if you are not careful with your required IRS reporting.


• Wills, estates, living trusts, and related legal areas are not integrated between Canada and the U.S. legal systems. You may need to have two wills, for example, if you have complex investments and legal situations in both Canada and the U.S.
  
  And the U.S. has an inheritance tax while Canada does not. The estate is taxed in Canada, not the recipient of the inheritance. Important legal and tax differences to be aware of.


• If one parent is moving back ahead of the other (a common thing to do) with your children and the children are young (less than 14 years or so) have a letter drawn up and notarized that allows one parent to move with the children to Canada. This will avoid any hassles at the border or airport when the parent arrives alone with the children.

The following stories can give you a sense of some of the possible legal aspects involved in returning to Canada from the U.S.:

Paul M. shares his experience on what happens if you don't give up your green card:

Happy to be in Canada right now. Please, do not forget to return your green card ( if you had one) and get a confirmation of return. I could not do this when I returned several years ago and I just completed the abandonment process. Expensive to do after the fact, especially if you have not submitted reports yearly to the IRS. There is a way but it will cost you a bundle.

Emily T. on the Canadian SIN and dormant bank accounts:

Thank you, Emily, for sharing your experiences and clear guidance!

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Ann on Social Insurance Numbers going dormant:

Thank you, Ann, for sharing your experience!

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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!

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Rosalynn V. shares her experience and tips from their experience on submitting Green Cards and reductions in CPP or Social Security under a "double windfall" rule:

Thank you, Rosalynn, for sharing this valuable information!

Topic List | Your thoughts? | Professional Help

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"Should we get U.S. citizenship before we move back to Canada?"

Many returning Canadians have green cards and have lived in the U.S. for many years and decades. Moving back comes with the decision to give up their green cards but at the same time a question arises as to whether they should apply for dual citizenship prior to moving back. This can be because they would be deemed "covered expatriates" and be subject to a hefty "exit tax" from the U.S., because they have children, investments, businesses, etc. in the U.S., and for other reasons, such as wanting to maintain the freedom to accept a U.S. job in the future should an amazing opportunity arise.

The decision as to whether to become dual-citizens has both practical and personal aspects. Here are some of the key positive reasons, drawbacks, and common misconceptions relating to the question of becoming a dual-citizen:

Positive reasons to become a dual-citizen of the U.S. and Canada:

• Taxation: You cannot be deemed a "covered expatriate" and therefore can never be subject to the U.S. exit tax (which applies to many people who only have green cards)
• You can come and go from the U.S. with no time limit. Benefits of this include being able to spend as much time with your U.S.-based grandchildren as you wish and "reverse snowbirding" - living in Canada for 5 months of the year and in Florida, for example, for the remaining 7 months.
• You can seek jobs in the U.S. and Canada with no concern as to whether you can work legally in either country. Regarding green cards and moving back to Canada: As a U.S. LPR ("Lawful Permanent Resident" - AKA "green card holder") you must give up your green card when you become a permanent resident of Canada. You can apply again in the future for a green card if you get a job in the U.S. but if you are a dual-citizen you skip the cost, expense, and uncertainty of applying again.
• You can more easily own property, operate a business, and have vehicles in the U.S.
• You potentially have more flexibility with a few forms of investment as a dual-citizen. Note: I say "potentially" because the financial services agreements between the U.S. and Canada apply to dual citizens as well as those leaving who only have a green card.
• There are some legal arrangements that can be more easily managed in the U.S. as a dual-citizen. These include trusts and wills.
• You can have two passports, which can be handy when traveling and makes crossing the Canada/U.S. border easier in both directions.
• Some people can continue to access health coverage in the U.S. and can get faster medical service for elective and non-life threatening medical care (urgent and life-threatening care is as fast in Canada as it is in the U.S.)

Drawbacks of becoming a dual-citizen of the U.S. and Canada:

There are very few downsides to becoming a US citizen and therefore having dual citizenship. As with any legal commitment of such a magnitude there will necessarily be some. But for most people these downsides are not only few, but normally small in nature, too. For example some people think that by remaining only Canadian citizens they cease all tax filings and responsibilities to the U.S. when they move back to Canada only to find out that their many years of living in the U.S. means that they have ties financially that now result in them having to do some U.S. tax filings for the rest of their lives.

There will be a few areas of tax that you will need to prepare for when you become a dual citizen. For some people this added new variable in life would not be to their liking. For the rest, managing their financial and tax picture proactively is a small price they pay for having more options, freedom, flexibility, and empowerment to live a bigger and more financially and personally rewarding life as a dual citizen.

A few specifics:

• As a dual-citizen you will be required to file full tax returns in the U.S. for the rest of your life. At very high income levels you might pay some taxes to the U.S. government in addition to paying taxes in Canada (see below for details).
• You have to file what are known as "FBAR" reports annually to the U.S. government.
• You do have a legal relationship to the U.S. in terms of citizenship and responsibilities. This is an emotional sticky point for many people.
• Your financial information in Canada - bank account, taxation, retirement benefits - will be more accessible to the U.S. government.
• The IRS does not recognize the Canadian "TFSA" as a tax-free savings vehicle (similar to the Roth IRA, but different). This is not a major issue for most people as the TFSA is such a good deal that it still makes sense to have one even if the IRS doesn't recognize it.

Common misconceptions:

• "I will pay double taxes on all my income." Double taxation on all your income simply doesn't happen. We have a strong tax treaty that protects residents of Canada from being double-taxed.
• "I will have to pay an extra tax amount to the U.S. government on top of what I pay in Canada." In most cases this does not happen, unless you are very high income (over USD $100,000). Why? Because you get a tax credit on your Canadian tax return for any taxes withheld and taxes paid in the U.S.
  
  If you plan to retire on about CAD $75,000 or less you will pay taxes in Canada at roughly equal to what you would pay in the top "high tax" states in the U.S. which include New York, California, Hawaii, Oregon, Vermont. Once you go over about CAD $75,000 in annual income, and if you compare Canada to a low-tax, warm-weather state, you do start to see the U.S. pull away in terms of taxation benefits (lower overall taxes) and lifestyle costs. But again, you get credit on your Canadian tax return for extra taxes paid in the U.S. and so unless you make over CAD $100,000 you won't likely see much benefit to not being a dual citizen.
  
  Finally, I would note that this is a bit of an "apples to oranges comparison" of taxation and financial benefits. The above numbers are rough comparatives. Many of my clients pay USD$1500/month for their health care as a couple. Add this into your Canadian annual income and suddenly you are quite a bit better off being residents in Canada if you make CAD $100,000 or less, regardless of being dual-citizens or not. And then there are lifestyle differences related to your tax residency because your lifestyle choices have financial impacts.
• "When I leave the U.S. I won't have to file tax returns if I give up my green card when I move back (and choose to not become a dual-citizen)". If you have financial or physical assets in the U.S., including Social Security, IRA's, Roth IRA's, real estate, etc. you will normally have to complete some form of U.S. tax filing for the rest of your life. Only those moving back and only receive Social Security (and have absolutely no other ties) can potentially avoid filing tax returns. So becoming a dual-citizen does not normally free you from filing tax returns once you move back! (The most common misconception).
• "I can keep a bank account when I move back to Canada only if I am a U.S. citizen." You can continue to keep a U.S. bank account as a Canadian citizen.

Summary: The decision and suggested actions

Whether to apply for U.S. citizenship prior to moving back to Canada depends on a number of variables including practical and personal considerations. And depending on your context and the state where you live in the U.S. the citizenship process can take between 8 months and 2 years to complete, potentially impacting your move timing plans.

Most of my clients considering dual-citizenship already have good reasons for pondering the choice and most choose to become dual-citizens before moving back to Canada. Only those who are absolutely sure they won't want a future relationship to the U.S. choose not to.

In summary, most dual citizens do find the benefits far outweigh the costs both financially and personally. The one main cost is learning more about how dual citizenship works from a financial and tax perspective and planning accordingly.

What does this all lead to? My suggestion is to spend some time reading up on Canada/U.S. dual citizenship implications from a tax and legal perspective so you will understand how your different options would play out. There is much written about it as there are so many dual citizens living in Canada (and in the U.S.). There are dozens of accountants in Canada who specialize in cross-border taxation and many more accountants who regularly do simple dual-filings of tax returns for clients. When the time comes you can use their services to help with taxes if your context is more complex or more simple. Most dual citizens find the fees they pay for a tax professional's help is an "investment" that pays off in many ways, including potential tax savings they couldn't have by being a Canadian citizen only.

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Pensions, Investments, Banking, and Taxes

As these topics are inter-related with each other, I have grouped them under a common heading. I would caution everyone reading this to be very careful with regards to your financial preparations for your move, as you will read below. No, I am not "fear mongering" to get your attention or to offer you some sort of expensive solution. Just recommending that you be proactive, careful, and "prepared" before you return to Canada.

Why?

Because a minority of returnees who do not appropriately prepare ahead of their return to Canada from the U.S. run into BIG problems that often have very expensive costs. Enough said. Now on to the topics...

Pensions

Most returning Canadians have more than one pension in the U.S. and often several. They are, of course, one or more 401k, IRA, Roth IRA, and Social Security and/or another public or private pension. I have seen couples with up to 7 or 8 different pensions because of the different organizations and industries they have worked in. However, a typical picture that returnees have:

Example: A Canadian citizen couple (not dual-citizens) who are still working in the U.S. before returning to Canada. Their pension picture:

• 401k's with their current employers
• One or more IRA's
• Social Security

401k's and IRA's:

In this case, the example couple must do something with their 401k's as once not employed and subsequently not in the U.S. they cannot keep their 401k's. Typically, if they have USD $25,000 or more in their 401k's they would "roll over" these funds into IRA's and "park" them until starting to draw them down after retirement age. If you are a Canadian citizen (only - not a dual-citizen) you must choose what to do and you must do so early, typically as early as 3 months before you finish working.

A Canadian who worked in a U.S. investment firm helped inform these steps on how to roll over your 401k into an IRA:

1. Start the rollover process early! Some organizations do rollovers only every 3 months (quarterly), so you want to start this process early. Ask your HR department what their policies on rollovers are and time your rollover and departure from the organization with this information in mind.
2. Once you know your departure date from your organization (not when you are leaving the country - just your resignation date), contact the HR department for the 401k rollover paperwork.
3. Find a good financial consultant/advisor at an investment firm who understands 401k to IRA rollovers. You may choose to not advise them you are moving to Canada at this point. "Sometimes it’s best not to mention your move to Canada at first because it just muddys the water." Be sure to find a really experienced advisor, even if it takes interviewing a lot of them before committing to one. You will save yourself a lot of grief later if you get a good one now!
   
   You can roll over your 401k to an IRA with a more "self-help" investment company like Ameriprise, but you will have to be more informed and diligent in ensuring all the paperwork is done correctly.
4. Open an IRA account with the investment firm so you have an account number. "A good financial advisor will do all the paperwork for you and babysit the transfer and do the follow up." Use your U.S. address for the opening of the account.
5. Do any required paperwork steps and be sure to follow-up regularly and carefully with both your investment advisor and your HR department so that it gets done correctly.
6. Once you move to Canada, change your address for your IRA.
7. Upon retirement age (typically 59-1/2), you can start taking withdrawals from your IRA either to a U.S. bank account or to one in Canada.
8. Report your IRA withdrawals on your Canadian tax return at year end.

Caveat: Everyone's context is different. The above steps are for general guidance only and may not apply to you. Be sure to understand your particular situation and how your 401k needs to be handled as well as your IRA and Roth IRA if you have them. For example, dual-citizens have different options. The above process applies more to Canadian citizens, typically ones who are giving up their green cards.

Social Security:

If you move back to Canada you are entitled to receive your Social Security benefits. Due to the U.S./Canada tax treaty, you will receive 100% of your benefit in Canada when you return. And only 85% of that will be taxable in Canada. Nice! The tax treaty between the U.S. and Canada is very complex but well-travelled and if you have a straight-forward situation, it is quite understandable.

If you worked less than 30 years you will be subject to the "Windfall Elimination Provision" ("WEP) in the U.S. Most people want the full entitlement of their U.S. Social Security rather than a reduced amount because they also receive Canadian CPP and OAS. Why? Because they get more money this way when it is converted to CDN and in their bank accounts! So, if you are entitled to full amount of U.S. Social Security, Consider starting these payments *before* you start CPP & OAS in Canada! Then the Canadian side will be reduced, if the Canadian government decides to do so. In some rare cases people even choose to not start CPP and OAS at all, so as to ensure they get the larger U.S. payments, that after the exchange rate, are worth quite a bit more in Canadian dollars.

Note: If you worked in the U.S. for 30+ years with "substantial income" the "Windfall Elimination Provision" does not apply to you. In other words, your U.S. Social Security won't be reduced if you subsequently receive any CPP and/or OAS payments in Canada.

Interesting bit of information: Are you not entitled to U.S. Social Security? But wait: If you are married to an American citizen who receives U.S. Social Security you are entitled to U.S. Social Security as well! You can receive 50% of your spouse's monthly amount, even if you never worked in the U.S., never contributed to Social Security there, and never paid taxes in the U.S. Nice!

Working with U.S. Social Security offices: Do you need to change your address and/or update your Social Security bank deposit information with the U.S. Social Security administration before, during, or after your move back to Canada? Do not call their 1-800 number or try to get this done at a regular Social Security office! They are not equipped to handle non-resident Canadians!

Visit and/or call a Social Security office at the town or city on the U.S. side nearest to the Canadian border you will be living at. These offices have been designated to help people living in Canada who receive Social Security.

Important: Here is the SSA resource showing the dedicated offices dealing with people moving to and living in Canada. Review it carefully with your new Canadian postal code to find the office for you:

Social Security - Canada Service Area Directory

A couple of stories to help you understand more:

A cautionary story regarding Social Security shared by Sheila H.:

Thank you, Sheila, for sharing your experience and information on who to contact if you run into U.S. Social Security questions!

Marian H. shares here experience of working with Social Security offices in Chicago and the one nearest her on the U.S. side of the border:

The Social Security office in Fort Gratiot, Michigan (just across the border at Sarnia, Ontario) is wonderful as well, they were knowledgeable and very helpful!

And about Fort Gratiot -- I have visited the Social Security office in Chicago a couple of times, and it was never a positive experience. This one was much better organized -- type your issue into a monitor when you enter, then take a seat until your number is called. I had to check "other", and I think that meant I got a very experienced officer to work with since this wasn't the usual thing (copy of SSA certificate, etc.). This guy knew exactly what to do, what numbers he needed for direct deposit (very different from the US), all of that. Excellent! :)))

Thank you, Marian, for sharing how the office you visited handled your needs.

Investments

In the past Canada and the U.S. had very separate investment and banking systems. Slowly but steadily they are becoming more integrated now, but remain quite different still.

It is important to separate the topic of investments from that of banking 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 a completely simple thing to move your investments to Canada. It can be done and sometimes makes very good sense from a tax perspective, but it takes a bit of work (start the process ahead of your move back!) Importantly: As a tax resident of Canada you cannot keep a regular brokerage account in the U.S. You must either move your investments or cash them out. You must open a Canadian one instead. Even dual-citizens cannot keep a regular U.S. brokerage account when they are tax resident in Canada.

Self-managed investments:

If you manage your investments by yourself in the U.S. using E*Trade or an equivalent system you can do so just as easily and powerfully through the top rated online brokerage in Canada called Questrade or another online brokerage in Canada.

Canadian banks also offer self-directed investment divisions, such as CIBC's "Investor's Edge". Not as powerful as Questrade, but for more simple management of portfolios, such systems will do. Questrade and the investment divisions of banks can help you move your portfolio from the U.S. if you don't wish to "cash out" your portfolio. But note that if you choose to move a portfolio rather than cashing it out you may have to do some careful planning as taxes on the U.S. side may apply because you can't move U.S. mutual funds to Canada if you own these. Individual shares/stocks? It may make sense from a tax perspective to move these instead of selling them from the U.S.! But many returning Canadians simply sell their securities portfolios in the U.S. if there are not major unrealized gains there and set up new portfolios in Canada to simplify their move and taxes.

Fully-managed investments:

Like in the U.S., if you have a fully-managed investment portfolio with an investment "advisor", you can have the same in Canada. Here are a few companies that can help you make an investment move across the border:

• Raymond James
• TD Ameritrade
• Pacifica Partners

Raymond James arguably has the strongest cross-border team, with a full department of tax and legal professionals who just focus on Canada/U.S. cross-border investment management. Some Raymond James advisors in Canada are also cross-border licensed to manage investments in the U.S. and Canada, adding depth to their overall ability to work with Canadians moving back.

A Raymond James cross-border licensed investment advisor who works with many returning Canadians and can help with a move to any province: Harp Sandhu.

Owen D. shares his experience with Schwab for his move back to Canada:

Thank you, Owen, for sharing your experience with Schwab and what you can and can't do with their international account.

Important note for anyone with investment and bank accounts in the U.S.: If you use your smart phone to have "2 factor authentication" ("2FA") checks when you log into your online investment and/or bank accounts then prepare ahead of your move for a change to a Canadian phone number if allowed. Some investment companies and banks won't allow a change to a Canadian phone number when you are already in Canada! Find out before you leave the U.S. how 2FA will affect you when you move back to Canada and have a Canadian phone number. And no, the seemingly simply solution of keeping a U.S. number or using Google to run your U.S. phone number does not work well after 1-3 months in Canada!

Feedback in October 2023 on 2FA from a visitor to the web site: "Thank you so much for this site, I used it a lot before moving back after 35 or so years in the US...Anyway the original motivation for this feedback was the cell phone problem...even on wifi and with a plan that should work in Canada, my phone will not accept SMS texts...which means I am dead in the water as far as entities that only offer texts as a means of getting codes to verify identity. That part has been incredibly frustrating. Not sure if you can put anything up about this since it would require promotion of specific carriers I guess."

Implication: Check with your important online accounts and with your cell phone carrier in the U.S. to see if you will be able to receive text messages while you are in Canada!

Banking and transferring funds to Canada

There are several important things to consider ahead of your move regarding banking and transferring funds to Canada. These include:

• Cross border banking options from Canadian banks
• Opening a Canadian bank account from the U.S.
• Don't use your bank to do your foreign exchange transactions
• Consider using a USD account with a Canadian bank
• Large transfers initiated from Canada can be problematic

Cross border banking options from Canadian banks

A very nice development in recent years is cross-border banking. Major Canadian banks now have solid cross-border banking services that allow you to have a full range of U.S. and Canadian accounts and investment assets, accessible online.

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.

Examples: RBC Canada and RBC Bank Georgia and TD Canada Trust and TD Bank USA.

Opening a Canadian bank account from the U.S.

This is discussed elsewhere on this web site including in the Taxes, Accounting, and Banking resource but I wanted to highlight that opening a bank account in Canada from the U.S. is getting easier as of 2023. You can open an account with RBC (Georgia) or TD USA and they can help you open an account in Canada. In the past these were "deposit only" accounts but now it appears TD, may be allowing you to open a full bank account in Canada without having to travel to Canada but it is not working consistently and some people are still being forced to open "deposit only" accounts with TD (see feedback below).

That said HSBC bills itself as an international bank and works hard to make international banking easy for clients. From the U.S. you can open a Canadian bank account with HSBC Canada through their U.S. division. Thank you to Scott N. for sharing his experience of doing so:

Grant Y.'s experience trying to open a TD account in Canada from the U.S. in 2022:

Don't use your bank to do your foreign exchange transactions

Important: Do not use a bank (your U.S. one or a Canadian bank) to do your foreign exchange transactions! You will typically save thousands of dollars on large transfers by using a dedicated foreign exchange firm.

Details on how to do this, trusted firms, and testimonials from clients on their experiences: Transferring Money to Canada and Foreign Exchange.

Consider using a USD account with a Canadian bank

Most banks in Canada now have useful USD accounts that you can send your money to from the U.S. with no foreign exchange cost until you decide to convert it to CDN later.

More on this: 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.

Don't have a bank account in Canada yet? The easiest thing to do is to visit Canada and open one while there, using your U.S. address at that time. This will not affect your non-resident status in Canada, to be clear.

Large transfers initiated from Canada can be problematic!

Many of my clients do not know that Wells Fargo, for example, does not allow you to initiate a wire transfer of more than USD $5k without you being in a bank branch. So you move back to Canada, phone Wells Fargo to send your $100,000 to a Canadian bank, and they tell you to come into a branch (in the U.S.) to set it up. Hmmm...not fun!

Be careful to check with your bank and investment company(-ies) ahead of your move to make sure you can initiate large transfers to your Canadian bank account when you are in Canada. Chase Bank allows up to USD $50,000 to be initiated by phone, for example, when the ability to do so is arranged in-person before you leave the U.S.

If you are selling a U.S. property that will close after you move to Canada plan ahead and consider giving your lawyer or a trusted family member Power of Attorney to wire transfer the funds to you in Canada.

Julie S. shares what she learned:

I thought I'd share back what we learned in case another one of your clients needs help. Fidelity allows unlimited wire transfers. Also, Chase clients with more than $250k USD can convert their account to a "Private Client" account and then go into a branch to fill out a wire authorization form for high or unlimited amounts initiated by phone.

Bill R. shares his with transferring money...by check ("cheque" in Canada) in 2022:

An alternative to wiring money is to write yourself checks and e-deposit using your Canadian and US based banking smartphone apps. Both RBC and WF have very good apps and allow you to photograph a cheque (check!) for deposit. I've done modest sums - like $5000 - and some big sums (my IRA draw this year was USD40k). It takes up to 20 business days for the funds to settle, but if you're not in a hurry and maintain accounts in two countries and USD checking accounts in your Canadian bank, it's super painless! And no wiring fees!

Elijah R. shares an important warning about arranging your banking and money transfers before you move back to Canada:

Used one of the exchange services to transfer our money. This saved us thousands. We went with Wise [former name: Transferwise].

One thing we would have done differently is started this process earlier. We did not anticipate the difficulty in moving our own funds that was driven by each bank we use having different random policies that created hurdles and delays. Some have a wire limit per day, some have a micro deposit requirement, some have a 30 day waiting period for linked accounts, and so on. I would have begun the process at least a month earlier had I known there would be so many delays and issues to resolve, and also would have lowered my expectations that I was getting complete information from customer service agents when trying o resolve issues. Give yourself as much time as you can, do not expect it will go smoothly even if it “should” especially if you need the money in Canada by a certain date! There are also some options available to you in a branch that you may not be able to access once you are across the border.

Taxes

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 that 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.

However, there are some very important tax issues to be aware of when preparing to move back to Canada if your situation is more complicated. Here are a few to help you understand why is critical to prepare ahead:

• The U.S. has an "Exit Tax". This tax applies to Canadian citizens (but not dual citizens), who have lived in the U.S. for more than 7 years ("7 year rule"), are moving back to Canada, and have USD $2 million or more in the U.S. as a sum of all their assets - real estate, cars, investments, furniture, lawn ornaments,...everything. These persons are called "covered expatriates" by the IRS.
  
  "Oh, phhewww!!! I don't have $2 million in assets, so I am OK."
  
  Not so fast: Even if you don't have $2 million you may still be a "covered expatriate" if you didn't file your tax returns "properly" (IRS terminology) for some or all the previous 5 years before you left the U.S. Or, if you had a very high annual income tax that you paid the U.S. government in one or more of the last 5 years. So, it is very important to check into your situation before you leave the U.S. and before file your next tax return!
  
  If you are a covered expatriate you must file appropriate forms or face massive tax penalties. This includes Form W-8CE that must be filed within 30 days of leaving if you have a 401k (and other possible reasons). And Form 8854 with your first dual-filing. And...you get the idea.
• As of the 2018 tax year (tax filings in 2019 for the 2018 tax year, onwards), when you give up your green card as part of a move back to Canada you must file Form 8854 with tax return for the year in which you leave the U.S. if you were a "Long Term Permanent Resident" in 8 of the last 15 years. This applies to Canadian citizens (not dual citizens) who have green cards when they leave. Failing to do so could mean a U.S. $10,000 penalty.
  
  Thought you might make a "clean getaway" from the U.S.? Sure, you still can in some cases, but now you must take more precautions to ensure that you have filed all appropriate forms and filings before and after you leave, and particularly W-8CE within 30 days of leaving (if you are a "covered expatriate" and have a 401k plan or other reasons) and the new Form 8854 requirement. Note: Your particular situation may require *more* forms as part of your exit. These are just ones that are of popular concern.

If a client's personal financial situation is complicated, such as having many U.S. assets, 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, please!

If you are currently working with a cross-border accountant you are extremely pleased with and can recommend, please let me know!

Suzanne shares her insights on Canadians renouncing U.S. citizenship for tax reasons:

Tax implications of retiring overseas

Thank you, Suzanne for generously sharing your thoughts!

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Ann shares a Roth IRA tax tip:

RBC - Taxation of Roth IRA's (PDF file that will open in your browser or download into your computer/device)

Thank you, Ann for generously sharing your thoughts!

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Chris G. shares his planning tips from his move back to Canada from the U.S.:

Thank you, Chris for generously sharing these great tips!

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.

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Foreign Exchange

As of Q3 2024 exchanging your U.S. dollars (USD) for Canadian dollars (CAD) means you are continuing to receive lots of colorful Canadian bills for your green U.S. bills. The exchange rate continues to be very favourable from a long term perspective and for most of 2024 (as of Q3 2024) you have been able to get a rate of CAD $1.35+ for every USD $1.00.

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:

"Hedging" your foreign exchange risks

In real estate the keystone wisdom is "location, location, location". When managing two or more currencies the wisdom is "hedge, hedge, hedge". This means mixing your holdings between U.S. dollars, Canadian dollars, Euros, Swiss Francs, Yen, etc. Hedging is always the safest bet if maintaining the value of your money between where you are living now and Canada is your priority.

Note: This is not about buying some of these currencies - the actual money itself (which you can do if you wish!) - but rather about buying stocks, bonds, and ETF's that include investments from other countries. Owning some safe stock market investments that are based in other currencies is the easiest way to hedge your currency risk.

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 full resource on the subject:

Moving Back to Canada: Foreign Exchange

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Lifestyle

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 only 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 in the winter, 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:

• Many people who move back to Canada do so partly or primarily for the public health care system here. A question to consider before you return for this reason as your central one:
  
  "Are there other ways to get the care and support you need for health issues besides completely centering your life in Canada?"
  
  Example: If you are looking for care for a long-term health situation that isn't medical equipment intensive, you might find a better lifestyle moving to Mexico or Central America than to Canada! Inexpensive medications, a warm climate, and lower costs can mean an upgrade in lifestyle when leaving the U.S. This is just one example.
  
  Health care issues tend to completely grab and hold our attention. But if there is some room for stepping back and considering a bigger picture, perhaps new options might appear that can help you maintain or even improve your lifestyle in the face of health challenges.
• Are you near retirement? Canada is expensive, cold, and dark in the winter. Mexico, Costa Rica, and Panama are inexpensive, warm, and bright in the winter. Want your children and grandchildren to visit? Which locale will be more enticing to them in January: Canada or Mexico?
  
  Enough said.
  
  Fun suggestion: Watch the 2012 movie "The Best Exotic Marigold Hotel". It is about retirees in the UK who decide to retire to India for health and a variety of other reasons. Not only an all-star cast of UK actors, but a touching story, too. Enjoy!
• Friends. If you have made deep friendships in the U.S., you will have to make new friendships or renew old ones in Canada. The older you get the harder it is to make significant friendships. Is it worth coming back to Canada?
• Cost of living. In Canada some things are expensive and taxed quite highly. Heating your homes in Canada can be costly, of course, depending on where you live in the country. If you are living quite simply in the U.S. with very low monthly expenses, it appears at first that you could live with less money than in Canada.
  
  At least that is what I thought....
  
  Living in Michigan for a short period of time straightened me out on a few things. First, while it appears that costs are cheaper in the U.S., there are often hidden taxes, fees, and more to pay. Our telephone bill started at about $20 per month. By the time all the fees and taxes were added it was more like $45. On a recent trip to Phoenix I considered renting a car. $27 a day was quoted. By the time all taxes and fees were paid: $60 per day.
  
  And a quote from a client moving back from Florida:
  
  "One pleasant surprise was that groceries were cheaper and fresher [in Ontario] than what I was used to in Florida! Go Canada!"
  
  The point: Be very careful to consider your real cost of living. Compare your real current and future major living expenses, and even ones we take for granted, like groceries. Include all taxes, fees, differences in usage (i.e. heating), driving distances, etc.
  
  Now which locale has the cheaper cost of living for the payoff in quality of life?

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Kirsten shares her experience of moving her family back from the U.S. in this inspiring story:

Thank you, Kirsten, for sharing your experiences and insights!

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Received from a Mrs. S. McDougall, moving back to Canada from the U.S.:

Thank you, Mrs. McDougall, for sharing your insights and suggestions!

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Marilyn shares her perspectives on costs in Canada:

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!"

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Your ideas, considerations, and experiences?

Please share your thoughts, considerations, experiences, and wisdom 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!

Thank you!

Paul Kurucz

Latest update to this page: October 2024.

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I offer professional support to help you prepare for a smooth and easy return to Canada so you can feel confident and organized!

Your questions about when to move back, taxes, investments and finances, bringing back your household belongings, health care, and more will be answered promptly and professionally, with resources to back up what you need. My 20 years of supporting over 1,300 clients gives me a depth of expertise across all aspects of planning and returning to Canada.

Paul Kurucz - Canada

A happy client:

Hi Paul,

Just to update you - we landed and sailed through customs! So thank you so much for all of your advice...It was a thoroughly pleasant experience.

This is to say thank you for everything. Your advisory has been so incredibly helpful and saved us considerable time and removed room for error.

With best wishes,

Caroline

Paul's professional support

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Moving Back to Canada Planner!

A ready-made and up-to-date planner of questions, considerations, and actions to take as you prepare for your move back to Canada, organized on a timeline approach. Save hours of work and stress of trying to piece everything together. A companion tool to the full content on this web site.

Now available for immediate download. In easily editable Microsoft Word format so you can customize it to meet your planning needs. Also in PDF format.

NEW! If you are in the U.S. and moving back to Canada quickly your purchase includes a new edition as well: "Moving back to Canada from the U.S. in 30 days or less", in Word and PDF formats.

Testimonials: "Your moving guides and checklists are unbelievably helpful - frankly I don't know what I would do without them. You have covered everything including many, many things I would not have thought of. Thank you!!!" - C.W. April 2022. "The list of tasks is very helpful as I’m a list person. Just love checking off the boxes!" and "I must say I truly appreciate having purchased your guide to moving back to Canada. While we are still a couple months away it has really helped me keep all the "balls in the air".

Bonus #1 ! Includes the guide: "Canada in 2024: 10 Insights to Empower Your New Life in Canada." Written by Paul Kurucz from his experience helping over 1,500 clients return to Canada, this guide will help you better understand the Canada you are coming back to!

Bonus #2 ! Includes the "Real Estate Selling and Moving Checklist" to help you prepare for your move back to Canada if you will be selling your house, townhouse, or condominium!

Purchase and Download now:

(PayPal, Visa, Mastercard, Amex)

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Content from the Moving Back To Canada web site by Paul Kurucz is licensed under a Creative Commons Attribution 3.0 Unported License for non-commercial, personal use.