Three Essential Considerations for Canadians Dreaming of Living Abroad

For many Canadians, the dream of retiring, working, or living abroad is more than just a passing thought. It’s a vision of a different lifestyle, often in warmer climates or countries rich with culture, history, and adventure. While the dream is exciting, making it a reality requires careful planning across three critical dimensions: financial, emotional, and logistical. This article breaks down these considerations, offering insights from the first session of my Canadian Expat Masterclass.

1. Financial Considerations: Building a Sustainable Foundation

When it comes to living abroad, the financial aspect is often the first to come to mind. It’s not just about whether you can afford to move—it’s about ensuring long-term sustainability in your new life. Here are the key factors to evaluate:

Tax Implications: Leaving Canada can have significant tax consequences. Before you make the move, you’ll need to determine your residency status for tax purposes. Becoming a non-resident can mean losing access to certain tax benefits, but it also opens up new opportunities in your destination country. Partnering with an international tax expert is essential to navigate this complex area.

Cost of Living: Research the cost of living in your chosen destination thoroughly. While some countries may appear cheaper than Canada, unexpected expenses like healthcare, insurance, and higher taxes can quickly add up. Tools like online cost-of-living calculators and expat forums can be invaluable.

Income Sources: Consider how you’ll fund your life abroad. Will you rely on Canadian pensions, rental income, or investment returns? Understanding how these income streams are taxed in both Canada and your destination country is crucial.

Currency Fluctuations: Moving abroad exposes you to exchange rate risks. A drop in the value of the Canadian dollar could impact your ability to afford your lifestyle. Setting up a multi-currency investment account or working with a financial advisor who understands currency hedging can help mitigate this risk.

Emergency Funds: Always maintain an accessible emergency fund. Life abroad can bring unexpected challenges, from medical emergencies to sudden political or economic changes. Having a financial cushion ensures you’re prepared.

2. Emotional Considerations: Preparing for a New Chapter

The emotional side of becoming an expat is often underestimated. Yet, it’s just as critical as financial preparation. Moving abroad means stepping out of your comfort zone, often leaving behind family, friends, and familiar routines. Here’s what to consider:

Family Dynamics: How will your decision impact your relationships? For some, the distance strengthens bonds as you prioritize meaningful connections during visits or online chats. For others, the separation can be difficult. Communicate openly with loved ones about your plans and expectations.

Cultural Adjustment: Even in countries with similar languages or customs, adjusting to a new culture takes time. Be prepared for culture shock and moments of homesickness. Joining expat communities and learning the local language can ease the transition.

Sense of Purpose: Retirement or working abroad can initially feel like an extended vacation. However, long-term fulfillment comes from having a sense of purpose. Whether it’s volunteering, taking up a hobby, or pursuing personal goals, find ways to stay engaged and connected.

Mental Health: The excitement of moving abroad can sometimes mask the challenges. Isolation, culture shock, and even bureaucracy can take a toll. Have a plan to prioritize your mental well-being, including access to counseling or mental health services if needed.

3. Logistical Considerations: From Vision to Reality

Once your finances and emotions are in check, it’s time to tackle the logistical hurdles. A successful transition abroad requires attention to detail and proactive planning.

Legal Requirements: Ensure you meet all visa and residency requirements for your destination country. Whether it’s a retirement visa, work permit, or citizenship application, understanding the process—and starting early—is vital.

Healthcare: Research healthcare options in your new country. If you’re losing access to Canadian healthcare, you may need to purchase private insurance or enroll in a national healthcare system. Ensure your coverage includes emergencies and pre-existing conditions.

Housing: Will you rent or buy? Some countries have restrictions on foreign property ownership. Take time to understand the local real estate market and, if possible, visit in person before making a commitment.

Transportation: Familiarize yourself with transportation options. If you’ll need a car, check whether your Canadian driver’s license is valid or if you need an international permit. Public transportation is also an excellent option in many cities worldwide.

Banking and Legal Documentation: Open a local bank account, and ensure your Canadian accounts remain accessible. Update your will and estate plan to reflect both Canadian and foreign laws. A dual-country financial advisor can guide you here.

Pets: If you’re bringing pets, research import regulations, quarantine requirements, and available veterinary care in your new country.

Final Thoughts

Dreaming of a new life abroad is exhilarating, but turning that dream into reality takes careful planning across financial, emotional, and logistical dimensions. By addressing these three pillars, you’ll set yourself up for a smoother transition and a more fulfilling experience as a Canadian expat.

In future articles, we will explore financial strategies, including optimizing your investments for a tax-efficient life abroad. Stay tuned for more insights and practical tips to make your expat journey a success.

This article was written by Sergiu Hirtescu and edited by ChatGPT. The information provided is based on research and insights from Session One of Serge's Canadian Expat Masterclass. It is intended for educational purposes only and does not constitute financial, legal, or tax advice. Please consult your professional advisors to discuss your specific circumstances before making any decisions.

Sergiu is a senior financial consultant with IG Wealth Management, specializing in partnering with Canadian families, incorporated professionals, and business owners, as well as those planning to retire, live, or work abroad. He provides strategic advice and services to create and maintain holistic financial plans tailored to both domestic and international goals. With over 25 years of experience in the financial services industry, Sergiu has developed a unique expertise in addressing the financial, tax, and estate planning challenges of Canadian expats.

Before joining IG Wealth Management in 2017, Sergiu worked at one of Canada's leading banks. He holds the Certified Financial Planner designation and is a Fellow of the Canadian Securities Institute. Based in Richmond Hill, Ontario, Sergiu serves clients across the broader GTA and offers specialized guidance for Canadians preparing for life abroad.

Sergiu's contact details can be found on his web-page.