Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Stats for American living and travelling to Canada
Key Points
- Over 1 million Americans live in Canada, attracted by opportunities, healthcare, and proximity to the U.S.
- Approximately 15 million Americans visit Canada each year, making it one of the top travel destinations for U.S. citizens.
- Canada offers various visa options for Americans, including work permits, student visas, and permanent residency pathways.
- Cross-border travel is facilitated by the close economic ties and cultural similarities between the two countries.
- Understanding visa requirements, tax obligations, and healthcare options is crucial for Americans living or traveling in Canada.
If you need help in reviewing your cross-border tax or investment situation, please feel free to reach out to us here. We look forward to speaking to you soon.
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NUMBER OF AMERICANS LIVE IN CANADA
Statistics from Immigration, Refugees and Citizenship Canada show a fairly steady increase in the number of people from the U.S. who were granted permanent residence in Canada each year since 2015.
After a sharp decline during the first year of the COVID-19 pandemic in 2020, the number of successful U.S. applicants reached 11,950 in 2021, up from just 7,655 in 2015 and the highest annual total since at least 1980.
So far, 2022 is shaping up to be another banner year: 3,235 applications were approved in the first quarter, the highest total for that three-month period in the last eight years.
In total, 70,330 applications from the U.S. have been approved since the end of 2014, including 5,040 in the first five months of 2022 alone.
Number of United States citizens travelling to Canada from 2002 to 2021
(in millions)
Compared to the previous year, the number of U.S. citizens travelling to Canada decreased to 1.93 million in 2020 due to travel restrictions relating to the coronavirus (COVID-19) pandemic. In 2021, that figure increased to 2.09 million.
Highlights
In June, the number of international arrivals to Canada rose sharply compared with June 2021, nearing levels recorded in the same month in 2019, before the pandemic.
The 846,700 non-resident visitors arriving from abroad at Canadian airports equipped with electronic kiosks in June 2022 is over 820,000 more than in June 2021.
Likewise, US residents took 904,700 trips to Canada through land ports with electronic sensors in June 2022, over 800,000 more than in June 2021.
At the same time, the number of Canadian residents returning by air from visiting abroad via kiosk-equipped airports (901,300) was over 15 times greater than in June 2021.
Compared with June 2021, over 1 million more Canadian residents—for a total of 1.3 million—returned from trips to the United States through land ports with electronic sensors.
This release provides the first glimpse of international arrivals to Canada in June 2022. Complete counts for June will be available in the “Travel between Canada and other countries” release on August 23, 2022.
Border restrictions eased further
Travellers arriving in Canada are required to be vaccinated, while unvaccinated travellers, regardless of citizenship, are subject to a COVID-19 test on arrival. However, random COVID-19 testing at all airports was paused on June 11, 2022, for fully vaccinated travellers, allowing airports to streamline their operations during this first month of the busy summer travel season.
All inbound travellers must continue to use the ArriveCAN App to enter their health information, quarantine plan, and proof of vaccination within 72 hours of their scheduled arrival in Canada.
As of June 20, 2022, vaccination is no longer required to travel by plane or train domestically, or to board international flights. However, proof of vaccination is still required for passengers and crew on cruise ships.
Non-resident arrivals by air
Arrivals of non-resident visitors from overseas countries (391,700) and the United States (455,000) at Canadian airports equipped with primary inspection kiosks (PIKs) totalled 846,700 in June 2022, up sharply compared with the 26,200 arrivals observed in June 2021.
With this sharp year-over-year increase, non-resident arrivals are now approaching the 970,600 who arrived by air during the same month in 2019, before the pandemic. However, these total counts for June 2022 now include a sizeable portion of arrivals at Toronto Pearson International Airport Terminal 1, where the PIK system was implemented in June 2021
Non-resident visitors arriving in Canada by commercial aircraft, June, 2019 to 2022
US-resident arrivals by land
In June, US residents took 904,700 trips to visit Canada, crossing by automobile through land ports equipped with the automated Integrated Primary Inspection Line (IPIL) application. This was over 800,000 more trips than taken in June 2021 and over half (52.9%) of the 1.7 million US residents arriving by automobile during the same month in 2019.
US-resident visitors arriving in Canada by automobile, June, 2019 to 2022
Canadians returning by air
The number of Canadian residents returning by air from abroad in June and landing at airports equipped with PIKs was 901,300, up by more than 840,000 compared with June 2021 (58,000).
While this appears to exceed the pre-pandemic levels observed in June 2019, the June 2022 count now includes international arrivals at Toronto Pearson International Airport Terminal 1 (see Note to readers).
Canadian residents returning from visiting abroad by commercial aircraft, June, 2019 to 2022
Canadians returning by land
In June, 1.3 million Canadian residents returned from the United States, crossing by automobile via IPIL-equipped land ports. With this jump of more than 1 million trips compared with June 2021 (250,400), this number was 56.8% of the 2.3 million trips recorded for the same month in 2019, before the pandemic.
Cities for Americans moving to Canada
Toronto
As Canada’s largest city, and the fourth-biggest in North America in terms of population, Toronto has something for everyone. More Americans in Canada call Toronto home than any other Canadian city.
Toronto is Canada’s financial hub and it’s financial district is located downtown, close to the CN Tower. It is also home to many of North America’s fashion and design houses. And with extensive public transport, newcomers to Toronto may find that owning a car becomes an option, rather than a necessity. Finally, it is important to be aware that Toronto has some of the most expensive property prices in Canada and across the world. The average price for a two bed condo in the Greater Toronto Area (GTA) has surpassed $400,000, while renting a one-bedroom apartment may set you back $2,000 or more per month, depending on the neighbourhood.
Vancouver
Located in the beautiful province of British Columbia and just 50 kilometres north of the US border, Canada’s third-biggest city, Vancouver, is only second to Toronto in terms of US-born residents Vancouver has become a magnet for many young and ambitious Americans moving to Canada with a sense of adventure. The combination of a booming film and visual effects industry with incredible mountain and ocean scenery and a seemingly unlimited range of outdoor pursuits make it one of the unique Canadian cities to live and work in. From Granville Island to Stanley Park and across the Capilano Suspension Bridge, there is so much to see and do in Vancouver.
Unlike most other Canadian cities, Vancouver has a relatively temperate climate, which means that rain is common, particularly from October to March. Thankfully you can often avoid many of the downpours by taking the city’s Skytrain or extensive bus and ferry networks. Similar to Toronto, one drawback of living in Vancouver is the price of renting or purchasing the property.
Montreal
Montreal, Quebec is the fourth-largest French-speaking city in the world after Kinshasa, Paris and Abidjan, while it ranks in the top three in the city-stakes for the number of Americans moving to Canada. As of 2016, almost 18,000 Americans called Montreal their permanent home, with many more Americans enjoying life in Montreal as a student or on a temporary work permit. As the second-largest city in Canada, Montreal is a diverse, bilingual and multicultural hub that is often referred to as Canada’s cultural capital. It is also home to some of the world’s leading aerospace, pharmaceutical and visual effects companies.
Montreal is one of the most densely populated Canadian cities, and as a result has an extensive metro (underground light rail system) and bus service to cater to the needs of the four million inhabitants who live in the wider metropolitan area. When it comes to things to do and places to hang out in Montreal, there are plenty of options to choose from, including Old Montreal, Place Des Arts, La Ronde and Biodome Montreal.
Unlike Toronto and Vancouver, renting and purchasing property in Montreal is comparatively affordable. As of April 2018, the average rental price of a one-bedroom apartment in Montreal was $1,290, though good apartments in many neighbourhoods can be rented at an even lower rate.
Calgary
Situated on the edge of the Rocky Mountains, Calgary has a lot going for it in the ideal city stakes. In addition to having some of the most breathtaking views in North America right on its doorstep, Calgary is also the sunniest city in Canada, as well as one of the youngest. All that sunshine and youth has helped to make Calgary the fourth most liveable city in the world, as judged by The Economist’s 2018 Global Liveability Index.
As of 2016, over 12,100 Americans were permanently settled in Calgary, with more present as students and workers
Calgary, and Alberta more generally, is home to 95% of Canada’s oil reserves. Consequently, jobs in mining, construction, engineering and a plethora of related industries thrive in the province’s biggest city. Calgary is a driving city, and the sprawling nature of its layout means that owning a car should be considered. The average price to rent a one-bedroom apartment in Calgary is around $1,200.
Ottawa
Ottawa, Canada’s multicultural capital city, is often underrated, but it is a great location for Americans moving to Canada looking for a city where history and culture adorn almost every street corner. Over 9,500 Americans call Ottawa their permanent home, and while some are undoubtedly employed in government positions, Ottawa is also a hotbed for innovative tech startups, with Shopify starting out from here in 2006.
With a population of around one million, Ottawa has traffic problems. Thankfully, the Confederation Line light-rail system will launch in 2019, helping residents in a range of Ottawa neighbourhoods to alleviate this issue. House prices in Ottawa are high and getting higher. This is exemplified by the fact that the average price for residential properties sold in Ottawa in June 2018 was $449,200, up 3.4% from June 2017.
Victoria
Located on the picturesque Vancouver Island in British Columbia, Victoria (pop: 370,000) is a magnet for Americans moving to Canada and looking for a slower pace of life surrounded by natural beauty. Victoria is a progressive and environmentally-friendly city that is home to 6,200 settled Americans.
If you are looking for a job in Victoria, then the tourism and tech sectors are two of your best bets. Similarly, as the provincial capital of British Columbia, Victoria is also a government city that attracts Americans moving to Canada with a political or media-based background.
Windsor
Windsor, Ontario may seem like a surprise destination for top Canadian cities for US-born citizens, but the reality is that it’s close proximity to the United States, and Detroit in particular, makes it an ideal location for Americans moving to Canada. As of 2016, just over 6,000 Americans were living in Windsor as permanent residents or dual citizens.
Windsor provides Americans moving to Canada with a small, compact downtown that can be navigated easily. It is also home to the University of Windsor and a number of tech startups taking advantage of the cheaper commercial rental rates. Public transport is considered pretty unreliable in Windsor, but the relatively low costs of rent make it an affordable place to call home.
Edmonton
Edmonton is Alberta’s capital, and the sports-mad city is also home to a growing number of Americans. Situated close to the world-famous Jasper National Park in the Rocky Mountains, Edmonton is the most northerly major city in North America. With a metropolitan area that is home to more than one million people, it should come as no surprise that over 8,600 Americans are settled Edmontonians.
Edmonton is an employment hub for northern and central Alberta, with the oil and gas industries among the biggest employers in the region. Edmontonians also possess the highest average income in Canada, aided further by relatively affordable living costs in terms of housing, as well as low tax rates by Canadian standards. Edmonton is also a city where you really need a car, as public transit is far from perfect. Many of the malls and attractions are outside of the city’s downtown core.
Hamilton
Hamilton has recently stepped out of nearby Toronto’s shadow and shown how important a city it is in its own right. From 2016, there were 5,700 Americans living in Hamilton permanently, out of a total population in the wider metropolitan area of approximately 536,000. The most recent census data indicates that over 20% of Hamilton residents were born outside Canada.
Hamilton is home to a modern transit system known locally as the Hamilton Street Railway, and there is also an extensive network of bike paths. In terms of renting, Hamilton is much cheaper than Toronto, it’s bigger and more illustrious neighbour on Lake Ontario. The average price of a one-bedroom apartment in Hamilton is approximately $1,000 per month. Manufacturing, medical and tertiary education are three of the biggest employment sectors in Hamilton.
Winnipeg
Located in the prairie province of Manitoba, when it comes to Canadian cities there aren’t many more central than Winnipeg. As the provincial capital of Manitoba, government jobs are plentiful in Winnipeg, while the recent opening of the Canadian Museum for Human Rights provides the perfect focal point for the city.
Public transit is pretty hit-and-miss in Winnipeg, meaning that a car is more of a necessity than it may be in larger cities such as Toronto or Montreal. With a population of over 725,000, almost 4,500 of whom are permanently-settled Americans, Winnipeg is the perfect mid-sized city for Americans moving to Canada and looking for something a little different.
The average price for a house in Winnipeg is close to $300,000, making it far more affordable than Canada’s larger cities.
Foreigner population by country in Canada
Canada’s population rose to 37 million people in 2021, up 5.2% from 2016, driven mostly by immigration, according to official data released on Wednesday, with the downtowns and distant suburbs of large cities seeing the strongest growth.
Canada added 1.8 million people between 2016 and 2021, with nearly 80% of those new residents arriving from elsewhere in the world, retaining its position as the fastest growing G7 country, Statistics Canada said in its Census 2021 release.
SOURCES
https://www.statista.com/statistics/214778/number-of-us-tourists-visting-canada/
https://www.nationalobserver.com/2022/07/17/news/increasing-numbers-americans-canada-offers-better-dream
https://www150.statcan.gc.ca/n1/daily-quotidien/220711/dq220711a-eng.htm
https://moving2canada.com/top-10-cities-for-americans-moving-to-canada/
https://www.canadim.com/blog/canadian-province-move/
https://www.census.gov/topics/population/migration.html
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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