Moving Back to Canada from the US Takes More than Packing Boxes
It means planning for taxes, health care, banking, real estate, and your investments.
If you’ve built your life in the US and are now returning, you'll be dealing with a lot of changes. The key is to start the planning process early.
Over the years, we've spoken to hundreds of Canadians moving back to Canada from the US. We always give this one key piece of advice: don't leave your finances until the end.
Take care of the money side of the move before you cross the border.
When you start early, you can take advantage of planning opportunities to minimize taxes and prevent costly mistakes.
WHO WE HELP
Canadians Moving from the USA to Canada
SWAN helps Canadians who are moving back to Canada from the USA and need help managing the financial transition and ensuring their investments are optimized.
Americans Moving to Canada
SWAN helps Americans and Green Card holders moving to Canada for retirement, work, or a work-optional lifestyle. If you have Roth IRAs, 401(k)s, and non-registered investment accounts, we can help.
Americans Living in Canada
If you're already living in Canada, you need to make sure your investments are optimized for your residence and you're not overpaying your taxes. SWAN provides portfolio management and cross-border financial planning.
Minimize Taxes and Simplify Your Cross-Border Financial Plan
Once you move to Canada, your US investment advisor can no longer manage your assets as they aren’t licensed in Canada.
You’ll likely receive a letter from your investment firm stating you have 30-60 days to move your account, or they will liquidate your retirement account. Should they liquidate your account, this could cause a major taxable event.
Before you move, you must start working with a cross-border advisor because most of the major cross-border pitfalls are preventable with the right guidance.
Keep It Simple
When you work with an advisory team licensed in Canada and the US, your life will be much simpler. At SWAN, we can manage an IRA, 401(k), or RRSP, whether you live in Canada or the United States.
We create your financial plan, considering assets and pensions on both sides of the border.
What’s the Best Solution?
While moving an IRA or 401(k) into an RRSP may be possible, it isn’t the best solution. Rolling an IRA into an RRSP is complicated and rarely tax neutral. There is a withholding tax in the US, which means you likely will need to top up your RRSP with another source of funds. Also, many consider an IRA a superior vehicle because it allows you to name multiple beneficiaries and stretch the tax liability out longer.
We can help you prevent these complications at SWAN because we're licensed in both countries and understand the common pitfalls.
We can manage your IRA from Canada or the USA, so you don’t need to collapse it.
Tax Implications of Moving Back to Canada from the US
Canada taxes you based on residency, regardless of where you earn.
Once you become a Canadian resident again, Canada taxes your worldwide income. That includes wages, pensions, rental income, and even investment gains, no matter where they come from.
At the same time, you may still have to file US tax returns, especially if you're a US citizen or Green Card holder.
The key is to avoid being taxed twice.
This is where the Canada-US tax treaty comes in. A cross-border advisor and cross-border accountant can help you file in both countries correctly.
Tax Implications for Canadian Citizens
Canadian citizens who move back are often surprised by the differences.
Even if you’ve always held your Canadian passport, your tax situation is entirely different once you re-establish residency. Canada will tax you on your global income when you become a resident again. This includes any income you earn from the US, like rental income, pensions, or business profits. You may also have tax filings in both countries for the same year. Planning ahead helps you manage timing and avoid surprises.
In addition, you need to make sure your US investment accounts don’t create new problems under Canadian rules. Be careful with US investment accounts like IRAs, 401(k)s, and brokerage accounts.
Your investments and investment strategy for the US are likely not tax-efficient in Canada. In addition, US mutual funds are not licensed to be held by Canadian residents. A cross-border advisor can help you decide what to keep, transfer, or restructure.
Tax Implications for Dual Citizens
Being a dual citizen means double the paperwork—but not double the tax.
If you are both a Canadian and an American citizen, you have to follow tax rules in both countries. That means filing in Canada once you're back and filing in the US every year, no matter where you live.
You might owe taxes in both countries but can often claim credits to reduce your total.
The key is filing correctly in both places. Dual citizens often face extra forms for foreign accounts and investments. A cross-border advisor will help you meet deadlines, avoid penalties, and keep your finances organized and compliant.
Putting Together Your Cross-Border Team
A cross-border move calls for the right team, and your financial advisor is the quarterback.
The first person to call is a cross-border financial advisor who understands both Canadian and US systems. They see the big picture and help you coordinate all the moving parts.
Next, you’ll want a cross-border tax expert or accountant who can file returns in both countries and help with things like foreign tax credits and IRS reporting. When you work with SWAN, you gain access to our in-house cross-border tax experts.
Finally, you’ll need a lawyer familiar with cross-border estate and immigration law.
They can update your will, deal with trusts, and handle residency or citizenship paperwork. At SWAN, our co-founder, Tiffany Woodfield, is a Trust and Estate Practitioner (TEP) and a dual-licensed financial advisor. Tiffany provides guidance around cross-border estate planning and legacy planning.
With the right team, you’ll save time, money, and reduce stress.
At SWAN Wealth Management We Help in the Following Ways:
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Manage your IRA and retirement accounts from Canada or the US
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Offer a pre-immigration consultation from a tax perspective before you move
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Guidance on retirement benefits such as CPP, social security and Medicare
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Transfer your investments from the US to Canada keeping them in a tax deferred account
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As a portfolio manager we are not limited to just investing in mutual funds but can choose holdings tailored to your individual needs
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Hold investments in US and/or Canadian currency on both sides of the border
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Minimize your tax burden by creating a tailored financial plan
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Manage your investments over the long-term so you can retire happy
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Provide access and management to your investments no matter on which side of the border you live
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Understand the tax implications of various investment strategies
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Create a financial plan that serves you in the short- and long-term
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Act in accordance with our fiduciary duties to ensure every aspect of your financial plan is in your best interest
To get started simplifying your cross-border finances and investments, schedule a call below.
Moving Back to Canada Planning Checklist
This brief checklist gives you a clear overview of what you'll need to do when moving across the border.
As soon as you have a firm move date, we recommend you schedule a call with a cross-border advisor.
Many individuals come to us seeking assistance after encountering issues that could have been easily prevented if they had consulted us before relocating. This is why I recommend that you start working with a cross-border team early in the process when preparing for a move across the border.
For example, while you are still US residents, you have the opportunity to rebalance your investment accounts, anticipating Canada’s higher tax rates.
Instead of feeling anxious and worrying about “how to move your investments,” you can have them managed by a cross-border team while you are still US residents. Your team can track your cost basis and set up the proper accounts once you are in Canada. This reduces financial stress and saves you time to focus on the logistics of your move.
Your Cross-Border Action Plan
In an ideal world, you start working with a cross-border team 18 months before your move so you can start to understand how it all works.
Their job is to oversee the bigger financial picture and to guide your through the process.
A good cross-border firm will be able to advise you on when to bring in other professionals such as a cross-border lawyer and cross-border accountant. They can explain the various options and impact if you move in one year versus the next. Time and planning ahead is essential to creating a seamless cross-border move.
Below is an example of a sample action plan:
18 months out
If you've decided to move to Canada in 18 months, you'll benefit from two tax years. Use this time to research cross-border firms to find the right fit for your needs.
During consultations, discuss potential pitfalls and important considerations for your move.
If you're a green card holder, determine the process for giving up your green card—whether it’s through the U.S. consulate or by mailing it back after your move.
Research the tax residency rules in both Canada and the U.S. to understand your obligations.
Collect and organize data on your non-registered accounts for easier management and reporting.
Begin tracking your income, investments, and property in both countries to gain a complete financial overview.
Evaluate your U.S. retirement accounts—including IRAs, 401(k)s, and Roth accounts—to understand how your move might impact them.
Review your estate plan, wills, and powers of attorney to ensure everything is up to date.
12 Months Out
Decide on your official move date and whether the whole family will move together or in stages. Start working with a cross-border financial advisor if you haven't done so already.
Review the timing for closing or restructuring U.S. accounts as needed.
Consult with a cross-border accountant and a lawyer to cover all bases.
Plan how to efficiently move money across the border to minimize costs.
Hold off on purchasing annuities as they don’t work the same way in Canada.
Discuss currency conversion and investment strategies with your advisor.
If you own a business, create a robust exit or transition plan.
Notify financial institutions and pension providers about your upcoming move.
Start looking for housing options in Canada and consider planning a trip there.
6 Months Out
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By this point, have your cross-border team in place and a clear understanding of how to move your money.
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Work with your lawyer to finalize any updates to your will or other legal documents.
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Revocable living trusts can complicate your move, so have a plan to address this.
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Research provincial health care options, noting any waiting periods that may apply.
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Move your investments to a cross-border firm while still a U.S. resident. This allows for a smoother transition as it goes from one U.S. institution to another while preserving your cost basis.
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Sign up for online Social Security access before your move to make it easy to manage your accounts from Canada.
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Make a plan for moving personal belongings and pets to ensure they transition smoothly.
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Confirm your tax residency change date with your advisor for proper documentation and planning.
Ready to Simplify Your Cross-Border Finances?
At SWAN Wealth Management we know that you want to be free to enjoy your life in Canada.
In order to do that you need a cross-border financial plan that’s tailored to your needs. Your US advisor can’t help you move or manage your investments in Canada, and you might be worried that you’re going to miss something during this transition.
We believe that moving your assets to Canada should be simple and easy. We understand how complex this process can appear — especially since it’s difficult to find clear information online.
That’s why we specialize in helping cross-border clients like yourself.
With over 25 years of experience as Certified Financial Planners and Portfolio Managers, we ensure your cross-border financial plan fits your needs and protects your assets.
Here’s how the process works:
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Schedule a 15-minute introductory call.
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Meet with a Financial Advisor.
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We create a cross-border plan.
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Together, we start the process.
To get started, schedule a 15-minute introductory call.
In the meantime, here’s our Cross-Border Moving Checklist so you’ll be able to stop worrying about whether you’re missing something and instead relax and enjoy your next adventure.
Preparing Your Finances Before Moving
Getting your finances ready before your move helps avoid costly mistakes.
Start by reviewing all your accounts in both countries. This includes checking, savings, investment, and retirement accounts like IRAs, 401(k)s, or Roth accounts. Some US investments, such as annuities and especially mutual funds, don’t work well under Canadian tax rules.
Your cross-border financial advisor can help you decide what to keep, transfer, or sell.
Make sure you understand how your income will be taxed once you become a Canadian resident again. You may need to restructure your portfolio to avoid unnecessary taxes or penalties. It’s also a good time to review life insurance, debt, and cash flow needs for your return.
Creating Your Moving Plan
A smooth cross-border move starts with a clear and realistic plan.
Choose a move date that works well for tax purposes, not just for family or weather. This date will determine when you become a Canadian resident for tax reporting.
Start gathering documents you’ll need in Canada—like your Canadian passport, Social Insurance Number, and health care eligibility paperwork. Think about how and when to transfer money across the border.
You may also need to coordinate logistics like housing, school enrollment, and the sale of US property. Write down every key step, then work with your team to help you stay on track.
What to Do When You Get to Canada
Once you arrive, there are a few key steps to take right away.
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Register for your provincial health care plan as soon as you're eligible
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Some provinces have waiting periods, so you may need private insurance at first
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Update your address with Canadian banks, the CRA, and any financial institutions
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Open or reactivate a Canadian bank account for income, bill payments, and transfers
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Reconnect with your cross-border financial advisor to confirm your Canadian tax residency
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Review your financial plan now that you're back in Canada
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Meet with your cross-border accountant to plan and prepare your first Canadian tax return
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Work with your lawyer to update legal documents and make sure everything is valid in Canada
About SWAN Wealth Management
At SWAN Wealth Management, our clients come to us because they value education and expertise and are looking for a guide.
They want to make smart decisions and avoid costly mistakes.
We have created the videos and articles on our website based on common questions from clients over the years. Most of our clients are experts in their field, and now they want an expert to guide them.
If you go to a bank or team that doesn't specialize in cross-border, you are at a higher risk of being invested in the wrong things. Many people think that working with a big bank will ensure everything is managed correctly. But unless your advisor is a cross-border expert, your investments may not be perfectly optimized.
Remember that cross-border financial planning is more complex than regular investing and financial planning.
Any mistake can cost you at tax time and give your accountant a serious headache.
When you first meet with us at SWAN, we first want to understand you. We want to know where you are now and what got you to this stage. Only after understanding this do we start to offer education and strategies.
We act as your guide through different life stages and transitions of wealth. Although most of our clients have assets or interests on both sides of the border, each person is unique.
We tailor our advice and services to your needs.
Getting Your Estate Planning Done
Your estate plan should match the country you live in.
If your will and power of attorney were created in the US, they may not hold up under Canadian law. Laws around inheritance, probate, and taxation are different in each country.
If you have assets in both countries—or if your beneficiaries do—your plan must account for that. A Canadian lawyer with cross-border experience can help you create a plan that works in both places. Don’t leave it to chance. An outdated or invalid will can create stress and expense for your loved ones.
Creating an Up-To-Date Will
Your old will might not work the way you think it will in Canada.
Even if you had a valid will in the US, the laws are different in Canada, and each province has its own rules. This means your US will may not be accepted, or could lead to legal issues for your estate. If you now live in Canada, you need a Canadian will that reflects your current life and assets. This includes property, investments, and accounts in both countries.
Make sure to review your power of attorney and health care directive.
Work with a lawyer who understands both systems so your wishes are clear and enforceable.
Registering for Government Benefits
Don’t miss out on benefits just because you moved away.
Once you're back in Canada, you may qualify for government programs like provincial health care, Old Age Security (OAS), and the Canada Pension Plan (CPP). But these programs don’t start automatically—you need to register.
Bring proof of your Canadian citizenship, your time spent in Canada and abroad, and your tax history.
If you lived in the US for many years, your eligibility or payment amounts could be different. A cross-border advisor can help you understand what you qualify for and how to apply.
It’s best to do this soon after you arrive to avoid delays in coverage or income.
Tax Residency and Reporting Obligations
Once you're a resident of Canada again, you pay Canadian tax on your worldwide income.
That means you will be subject to tax in Canada on everything you earn, no matter where it comes from. At the same time, if you're a US citizen or Green Card holder, the US will also expect you to file taxes every year—even while living in Canada. This is why cross-border tax planning is so important.
To avoid double taxation, you’ll need to claim foreign tax credits in the right country at the right time. Timing matters. So does filing the right forms, like the Foreign Bank Account Report (FBAR) and IRS Form 8938. Missing these forms can lead to large penalties.
The best way to stay compliant and protect your money is to work with a cross-border financial advisor, a cross-border accountant, and a cross-border lawyer. They’ll help you file correctly in both countries and ensure your income is taxed once, not twice.
What to Know About Buying Real Estate in Canada
Buying a home in Canada feels familiar, but the rules may surprise you.
If you’ve been living in the US, Canadian real estate might seem expensive, especially in big cities. Mortgage rules are also different. Lenders often ask for a larger down payment from returning Canadians with foreign income or assets.
You may also face delays if your credit history is based in the US.
Make sure to plan for property taxes, closing costs, and legal fees, which vary by province. A Canadian mortgage broker and real estate lawyer can guide you through the process. Talk to your cross-border advisor before using US funds for a down payment, especially if you’re exchanging large amounts.
Why Move Back to Canada
Many Canadians move home for family, lifestyle, and peace of mind.
Living closer to aging parents or giving your kids a Canadian upbringing can be a strong pull. Others move back for universal health care, the safety net of Canadian services, or the pace of life.
Some want to retire in familiar surroundings with fewer out-of-pocket costs for things like health care.
If you’ve built wealth in the US, moving home with a solid cross-border plan lets you enjoy your next chapter without stress. The key is making sure your money and legal setup follow you smoothly across the border.
Why Not to Move Back to Canada
Moving back isn’t always the right choice, especially without a plan.
Canadian taxes can feel high if most of your income comes from US investments.
You may lose access to certain US financial products or find it harder to manage retirement accounts. Health care in Canada is excellent, but there can be wait times and differences in access.
Some returning Canadians feel out of sync with the lifestyle or pace of change in their old communities. If your social life, business, or key family members are still in the US, moving back may feel isolating.
Before you decide, weigh the emotional and financial pros and cons with a trusted advisor.
Keep in mind that when you work with a dual-licensed financial advisor, they can manage your investments whether you live in the US or Canada. So if you change your mind, you won't need to find another advisory firm.
Common Questions
The “same rule” is an informal way of referring to a consistent principle in Canadian tax law:
Once you become a resident of Canada for tax purposes, you must report and pay Canadian tax on your worldwide income, no matter where it is earned.
This rule applies the same to all Canadian tax residents — whether you were born in Canada, lived abroad for decades, or just returned from a few years in the US. That’s why it’s often called the “same rule” — the same tax residency rule applies across the board.You are responsible for reporting your Canadian taxes from the date you become a resident of Canada again. This is usually the day you arrive with the intention to settle. From that day forward, Canada has the right to tax you on your worldwide income, including income from the US.
Yes, you may need private health insurance at first. Some provinces have a waiting period of up to three months before public coverage starts. During that time, private insurance can help cover medical costs until you’re officially enrolled in the provincial health care plan.
You need to review how your business will be taxed under Canadian rules. Income from a US-based business is still taxable in Canada once you’re a resident again. For example, an LLC is taxed differently and you need to determine what business structure is best as a Canadian resident.
If your spouse is not a Canadian citizen, you can sponsor them for permanent residency. The process is straightforward but takes time, usually several months. You must meet income requirements and prove the relationship is genuine. A Canadian immigration lawyer can help make the process smooth.
Giving up US citizenship is a major decision. It can reduce tax filing requirements but may lead to an exit tax and loss of US rights. It’s best to speak with a cross-border advisor and lawyer to weigh the financial and legal effects before deciding.
Final Thoughts
If you’ve been living abroad for many years, returning to Canada means more than just a location change.
Moving will affect your taxes, health care, estate planning, and investments.
Starting a new life in Canada brings opportunities to reconnect with family, access universal health care, and retire with more predictability. But it's a major decision that requires thoughtful preparation. One important consideration is the timing of your move, as it determines when you become a tax resident and how your income is reported in both countries.
Whether you’re settling in British Columbia or Nova Scotia, remember that tax rules are federal, but housing markets and access to healthcare can vary by province. Make sure you research the province or territory to which you're moving well in advance.
Finally, start working with your cross-border financial advisor at least 8 to 12 months before your move. This will simplify things and allow for a (nearly) stress-free move back to Canada.
More Resources for Canadians Returning to Canada after Living in the US
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