IT Professionals Relocating to Canada

Fortunately for Canada, some of the best American talent gets recruited north of the border. This phenomenon frequently occurs in the field of information technology as American IT professionals move north to take advantage of the growing technology market and start-up scene in Canada. Some Americans also want to stay in Canada after completing their educational training north of the border.

While working as an IT professional in Canada is appealing, Americans need to consider a variety of cross-border planning points before packing up to move north of the border.

For example, Americans are often concerned about their income and how their retirement years will be impacted by moving to Canada, unsure about whether such a move is financially sound. For some, Canada can be even more financially advantageous than the US. Performing a cash flow analysis is one way to ensure that working and retiring in Canada is feasible.

Canada is also attractive because of its low cost of health care. The private US health care system is notoriously expensive. The Canadian public health care system is far more affordable; American IT professionals who move to Canada can therefore benefit from the Canadian health care system.

Another threshold issue that many American IT professionals wonder about is immigration. Typical questions are, “What is the best immigration route to Canada?” and, “Do I need an offer letter for employment in Canada before I move?” Other important questions concern whether or not it’s necessary to relinquish US citizenship or Green Card status once Americans move to Canada.

Besides immigration, cross-border tax questions are also primary. Many Americans are familiar with the fact that the US taxes its citizens and permanent residents on their worldwide income, regardless of residency. Americans who move to Canada therefore want to make sure that they are not caught in any cross-border tax traps, particularly if they have US business holdings or a US investment portfolio. How to handle American retirement accounts such as IRAs and 401(k)s in the most tax-advantageous way is yet another consideration for American IT professionals moving to Canada.

Making the decision to move to Canada necessitates careful pre-departure tax, estate, retirement, investment, and immigration planning. Keep reading for more information about these cross-border financial planning topics as they apply to American IT professionals moving to Canada.

Please note that the topics covered below require detailed, comprehensive analysis before specific recommendations can be made to an individual client, which is the purpose of creating a cross-border financial plan prior to departure.