Retiring in Canada
Residency routes, healthcare and pension tax · CAD
Routes to residency
Canada has no dedicated retirement or passive-income residence route. Permanent residence is granted through economic, family or provincial programmes rather than on the basis of pension or investment income. Confirm current options with Immigration, Refugees and Citizenship Canada.
Sources: Immigration, Refugees and Citizenship Canada
Healthcare
Permanent residents of Canada qualify for their province or territory's public health insurance plan, applied for through the relevant provincial/territorial health ministry; temporary residents such as work or study permit holders may also be eligible depending on the province, while visitors on a visitor visa generally are not covered.
Most provinces impose a waiting period of up to three months after establishing residency before provincial health coverage begins (e.g., Ontario's OHIP applies a three-month wait for new residents), though a few provinces/territories provide coverage immediately.
Private health insurance is not a legal requirement for permanent residents, but many newcomers purchase temporary private coverage (commonly costing a few hundred dollars to over a thousand CAD depending on age/coverage) to bridge the provincial waiting period, since that period is otherwise uninsured.
US Medicare: US Medicare generally does not cover health care received in Canada; Medicare coverage is limited to the United States and its territories, with only very narrow exceptions (e.g., certain emergency situations near the US-Canada border under specific conditions). Retirees relying on Medicare should not expect it to pay for routine or emergency care received in Canada.
Pension income tax
Canada taxes foreign pension income of its residents.
Canada taxes its residents on worldwide income, including foreign-source pensions, at the standard progressive federal and provincial/territorial rates; some foreign pension income may qualify for treaty-based exemptions or deductions depending on the source country and specific treaty provisions.
There is a US income tax treaty with Canada.
Under Article XVIII (Pensions and Annuities) of the Canada-US tax treaty, pensions arising in one country and paid to a resident of the other are generally taxable in the residence country, though source-country taxation may also apply in certain cases; for US Social Security benefits paid to a Canadian resident, only 85% is included in taxable income in Canada, with the Canada Revenue Agency allowing a 15% deduction (Line 25600) to reflect the treaty's social security provisions.
Sources: Understanding the Healthcare System in Canada: A Guide for Newcomers - RBC · Ontario Health Insurance Plan · Line 25600 – Additional deductions, Canada.ca · Convention between Canada and the United States of America with Respect to Taxes on Income and on Capital - Canada.ca · Part III - Administrative, Procedural, and Miscellaneous (Notice 98-23), IRS
Checked Oct 2026
Customs & etiquette
- Greetings and Introductions — A firm handshake with eye contact is the standard greeting when meeting someone for the first time, especially in professional or formal settings. Close friends may greet with a short hug, and in Quebec, light cheek kisses between friends are sometimes practiced. First names are commonly used once introduced, unless someone holds a professional title or is notably older.
- Personal Space and Physical Contact — Canadians generally value personal space and prefer to maintain a comfortable distance, roughly an arm's length, during conversation. Standing too close, especially in lines or casual encounters, can make people uncomfortable even though it may be unintentional.
- Queuing Etiquette — Canada has a strong culture of orderly queuing when waiting for buses, coffee, tickets, or services. Patience and fairness in line are expected and enforced socially, even without formal barriers.
- Visiting a Canadian Home — It is customary to remove your shoes when entering someone's home, as this shows respect and helps keep the home clean. If invited for a meal, bringing a small gift such as wine or flowers is considered polite, and it's courteous to ask the host whether they'd like you to remove your shoes rather than assuming.
- Dining Etiquette — Canadians commonly use the continental style of holding the fork in the left hand and knife in the right, keep elbows off the table, and wait for everyone to be served before eating. In restaurants, paying for what you individually ordered rather than splitting the bill evenly is common, and tipping 15–20% of the pre-tax bill is customary (not required at counter-service establishments).
- Sensitive Conversation Topics — Politics, religion, sex, personal finances, weight, and comparisons to the United States are generally treated as sensitive or taboo topics for casual conversation. Issues like abortion, Quebec separatism, and the status of Indigenous peoples can provoke uncomfortable or polarized debate and are best avoided unless a Canadian raises them first.
Religion
Christian 53.3% · Muslim 4.9% · Hindu 2.3% · Sikh 2.1% · Buddhist 1% · Jewish 0.9%
Other countries in North America
Reference information compiled from the sources cited above and reviewed by hand. Immigration, healthcare and tax rules change and are applied at the authorities' discretion — confirm with the consulate, an immigration adviser or a tax adviser before making plans. Nothing here is tax or immigration advice.