Canadian Millionaires Eye Emigration, but Many Plans Stall
Lawyers and financial planners across the country are fielding more calls from Canadians asking what it would take to leave the country. But while interest in emigrating appears to be rising, many of those inquiries never turn into an actual move.
Rahul Sharma, a partner at law firm Fasken, describes many would-be emigrants as “tire kickers.” They’re typically wealthy Canadians over the age of 50 who explore their options, imagine a different lifestyle and shop around for a new country, only to stay put in Canada once they confront the true costs and legal complexity of leaving.
But there are some calls that come in that do turn into action. Professionals who spoke with The Globe and Mail say the more meaningful outflow from the country is happening earlier, among young entrepreneurs with early traction who leave before they ever build or register significant wealth in Canada.
“I think we should be alarmed about these individuals and their desire to leave,” Mr. Sharma said. He has seen many young people want to go because they “simply do not see Canada as providing them with an environment in which to succeed at the entrepreneurial level.”
That concern comes as Canada appears to be losing some of its appeal among high-net-worth individuals more broadly, according to a 2025 report from advisory firm Henley & Partners. Using data from research firm New World Wealth, the report estimates Canada will see a net inflow of about 1,000 wealthy migrants in 2025, the lowest figure on record.
Experts who spoke to The Globe and Mail said common reasons for wanting to leave the country include dissatisfaction with quality of life and concerns about the economic outlook in Canada.
Still, the most persistent driver among middle-aged wealthy Canadians is taxes, said Brandon Davies, founder of Clarity Cross Border, a financial planning firm, and a financial planner certified in both Canada and the United States.
He said that many wealthy Canadians feel “disadvantaged” by the high tax rates they are subject to. In Ontario, for example, the surtax on personal income can reach 56 per cent. For some, the idea of relocating to a lower-tax jurisdiction is tempting, especially when they compare potential savings abroad to the heavy tax burden at home.
Mr. Davies said that lifestyle factors weigh heavily, too. Canada’s harsh winters are a major consideration, particularly for older residents or those seeking a more relaxed, outdoor-oriented lifestyle. “They want to be the people on a yacht while others are shovelling snow,” he said.
For young entrepreneurs, Greg Moore, a partner at Richter Family Office, which manages many high-net-worth clients, said many want to be surrounded by people similar to them. They can often find that in the United States, in places such as Silicon Valley.
“You also have an environment where raising capital is a lot easier,” Mr. Moore said, referring to the U.S. “There’s a lot more money around willing to flow into venture capital to support these young entrepreneurs. There’s a culture of risk-taking that is more evident within the United States.”
A recent study from Toronto venture-capital firm Leaders Fund found that just 32.4 per cent of Canadian-led “high-potential” startups launched in 2024 were headquartered in this country. The survey defined these startups as having raised US$1-million, with most of their senior leaders educated in Canada, and tracked 2,932 such companies over a decade.
“All of that creates an environment which is much more supportive of entrepreneurs,” Mr. Moore said.
But the reality of emigrating is often far more complicated than clients expect. “It’s not as easy as packing up your bags and leaving,” said Jenna Schwartz, a partner at Richter.
One of the biggest obstacles to leaving the country is the departure tax.
When someone emigrates, the Canada Revenue Agency treats certain assets as if they were sold on the day they leave – a “deemed disposition” that can produce tax bills in the hundreds of thousands or even millions of dollars. While the tax can be deferred, Ms. Schwartz said doing so requires months, and sometimes years, of planning.
The process becomes even more complex for business owners. Shares must be valued, and departure tax may be owed on those shares, even if the business is not being sold. “That isn’t always an exercise that everyone wants to do, particularly if they’re not actually looking to sell that business,” she said.
If a business is moved and begins operating in the U.S., the company itself becomes a separate taxpayer subject to a different regulatory regime, Ms. Schwartz said.
After confronting those realities, many clients reconsider. “They take a sober second look and say, ‘Okay, is this really something that I want to do?’ ” Ms. Schwartz said. Often, the answer is no, she said.
Young entrepreneurs tend to face fewer obstacles, and that’s why they are the ones who typically end up leaving Canada, experts say. With smaller portfolios and fewer family obligations, they often incur less departure tax and may not need to move an established business, Ms. Schwartz said.
Then there’s health care. While Canada’s system covers most medical costs, emigrants often face steep private insurance premiums abroad. For clients moving to the U.S., annual coverage can easily exceed $20,000. “I can’t tell you how many times I have seen the sticker shock on a client’s face when I explained that to them” for U.S. health care costs, Mr. Davies said.
Immigration rules can be another deterrent, he added. It’s not easy to move to a different country, and visas may be temporary or tied to employment, making it difficult to move an entire family. The holders of TN visas, which permit qualified Canadian and Mexican citizens to work in the U.S., for example, must leave if they lose their job, and spouses may not be permitted to work.
This article was first reported by The Globe and Mail
