1009 / When does a U.S. individual establish permanent residency in Canada?

The term “permanent resident” has a specific meaning in the immigration context that is beyond the scope of this article. For this discussion, a “permanent” resident of Canada is treated as a resident of Canada for tax purposes, as detailed in Q 1005 to Q 1008.

U.S. individuals are most likely to acquire Canadian residency for tax purposes by fact; that is, they will be determined to be a Canadian resident based on their ties to Canada, or, more simply, because the individual ordinarily resides in Canada. The length of time the individual spends in Canada is not a factor; rather, it is the ties to Canada that are determinative.

U.S. individuals can also sojourn in Canada for more than 183 days in a calendar year, in which case the individual is treated as a Canadian resident for tax purposes, whether or not their primary “living” connection is with Canada. In this case, the length of time in Canada is the only factor, and the reason for the individual’s stay in Canada is irrelevant.