Following recent political and social shifts in the United States, some Americans have begun to consider life north of the border, and for many Americans, the idea of Canadians’ universal healthcare, parental leave, gun violence laws, or a perceived better quality of life is just one side of the story. The other side is financial.
At i2 Wealth, we help Americans moving to Canada plan for the financial implications of their decision to relocate. Taxes and investment structures often look very different once someone gains permanent residence or Canadian citizenship, so our role is to guide clients through those differences, using cross border financial planning to help them protect what they’ve built as they make the transition.
A Closer Look at Financial Implications for Americans Moving to Canada
Cross-Border Tax Planning and Treaty Benefits
When American citizens think about settling in Canada permanently, one of the first questions is how their income will be taxed. The United States requires its citizens to report worldwide income, and Canada also expects tax filings once residency begins. Without planning, this creates the risk of double taxation.
The tax treaty between the two countries was designed to ease that problem, but it only works when accounts and reporting are managed with care.
At i2 Wealth, we help permanent residents and families moving through Canada’s immigration system use the treaty to their advantage. Our focus is on practical steps that allow income, savings, and investments to be treated correctly under both sets of rules.
Ongoing U.S. Tax Compliance for Expatriates
U.S. citizens remain bound by American tax law even after moving abroad. That means reporting worldwide income, maintaining FBAR filings, and navigating rules that reach into investments, trusts, and retirement accounts. Many people moving to Canada are caught off guard by this dual system. With cross border tax services, we work to anticipate these obligations and prevent costly surprises.
Canadian Investment Accounts Under U.S. Rules
A Tax-Free Savings Account may sound appealing to new residents, but the IRS does not recognize it as tax-sheltered. On top of that, Canadian mutual funds and ETFs are treated as PFICs, a category with punishing tax consequences. Without careful planning, what looks like a tax break in Canada can result in extra filings or penalties in the U.S. We help clients evaluate investment vehicles before committing, avoiding products that create complications across jurisdictions.
Estate Planning Across Two Systems
Estate structures that function smoothly in the United States can cause problems once residency changes. Revocable trusts, in particular, may carry different tax treatment in Canada. The question is not only how assets will be distributed but also how governments will tax those distributions.
We can examine your estate plan through both lenses, adjusting structures so families avoid unnecessary tax burdens and administrative delays.
Deemed Disposition on Residency in Canada
When an American citizen becomes a Canadian tax resident, the Canadian government often treats their assets as if they were sold and immediately repurchased at fair market value. This “deemed acquisition” isn’t just a line in the tax code; it can reset the cost basis and change how future gains are taxed.
For some, that reset feels like a fresh start. For others, it creates exposure they didn’t expect. The outcome depends on timing, asset mix, and how the move itself is structured. Planning before stepping into Canadian permanent residency can be crucial, because once the process begins, opportunities to adjust shrink quickly.
Moving Forward with Confidence
Relocating to Canada isn’t just a lifestyle choice; it’s a financial transition that reaches into taxes, investments, and estate structures. At i2 Wealth, our experience in financial retirement planning and cross-border strategies gives Americans the guidance they need when weighing a move.
Getting the right advice at the right time can help protect your financial stability, now and in the years ahead. If you’re considering this step, contact us to discuss how we can help you structure your finances correctly.