Canada is planning to launch a new program to attract digital nomads, or location-independent workers who use technology to do their jobs remotely, travelling to different countries for brief periods. The program is part of the government’s Tech Talent Strategy, which aims to fill in-demand jobs and attract the skills and business talent to create the jobs of tomorrow.
What is the digital nomad program?
Under current Canadian immigration rules, a digital nomad only needs visitor status to relocate to Canada for up to six months at a time while they perform their job remotely for a foreign employer. In the months ahead, Immigration, Refugees and Citizenship Canada (IRCC) will collaborate with public and private partners to determine whether additional policies to attract digital nomads to Canada would be desirable.
The government expects that some digital nomads who initially enter Canada to work remotely will decide to seek opportunities with Canadian employers. When they receive a job offer from a Canadian company, they would be able to bring their skills to a Canadian employer by applying for a temporary work permit or even permanent residence.
Why does Canada want digital nomads?
Canada is facing a skill shortage in the tech sector, which is expected to worsen in the coming years. According to a report by the Information and Communications Technology Council (ICTC), Canada will need 305,000 additional tech workers by 2023, up from 216,000 in 2019. The report also found that Canada ranks 12th among 16 peer countries in terms of tech talent density, or the proportion of tech workers in the total workforce.
To address this challenge, the government has introduced several initiatives to attract and retain tech talent, such as the Global Skills Strategy, the Global Talent Stream, and the Start-up Visa Program. The digital nomad program is another way to tap into the global pool of tech workers who are looking for flexibility and mobility in their careers.
What are the benefits and challenges of the program?
The digital nomad program could offer several benefits for Canada, such as:
- Increasing the diversity and innovation of the tech sector by bringing in fresh perspectives and experiences from different countries and cultures.
- Boosting the local economy and tourism by attracting digital nomads who would spend money on accommodation, transportation, food, entertainment, and other services while in Canada.
- Enhancing Canada’s reputation as a tech hub and a desirable destination for remote workers, which could encourage more people to consider moving or investing in Canada.
However, the program also poses some challenges, such as:
- Ensuring that digital nomads comply with tax and social security obligations in Canada and their home countries, which could vary depending on their length of stay, income sources, and residency status.
- Providing adequate infrastructure and support services for digital nomads, such as high-speed internet access, co-working spaces, health care, and legal assistance.
- Balancing the interests of local workers and employers with those of digital nomads, who may compete for jobs or resources in the tech sector.
- Measuring the impact and effectiveness of the program, which could be difficult given the fluidity and diversity of digital nomads.
How does Canada compare with other countries?
Several countries have introduced new programs to attract digital workers over the past few years. Some examples are:
- Estonia: The first country to launch a digital nomad visa in 2020, which allows remote workers to stay for up to one year. Applicants must have an income of at least €3,504 per month and pay €100 for the visa fee.
- Barbados: The Caribbean island nation offers a 12-month welcome stamp for remote workers who earn at least US$50,000 per year. Applicants must pay US$2,000 for individuals or US$3,000 for families for the stamp fee.
- Croatia: The European country launched a digital nomad permit in 2021, which allows remote workers to stay for up to one year. Applicants must have an income of at least €2,200 per month and pay €70 for the permit fee.
- Bermuda: The British overseas territory offers a one-year residential certificate for remote workers who earn at least US$100,000 per year. Applicants must pay US$263 for the certificate fee.
Canada’s digital nomad program is still in development and has not yet revealed its eligibility criteria or fees. However, it is likely that Canada will offer more incentives and opportunities for digital nomads who wish to transition to permanent residency or citizenship than other countries.
