Canadian healthcare coverage eventually expires for expats. According to the CRA, your provincial health plan might cover some of your medical expenses outside the country should you get injured or sick, but you’ll have to pay those fees up front. And after six to eight months, your coverage becomes invalid.
“I’m always talking to people about health insurance, disability insurance and life insurance. In Canada, disability insurance is often a part of your employment package but that’s not the case for many people working overseas, so build those into your budget,” suggests Hiscock. “Find a broker that can assist with expat insurance.”
Set up an emergency fund to cover three to six months of expenses. This is advisable for everybody, including residents of Canada, but even more so for expats, who face higher risks. “And if you don’t have a job, then set aside a significant emergency fund, depending upon your situation,” suggests Hiscock.
Talk to other Canadian expats
The more information and lessons learned you collect from other expats, the better off you’ll be, says Judith Asher, a Montreal-born executive and leadership coach who moved to Italy 20 years ago with her Danish-born husband. The language barrier and not understanding how Italy’s taxation system worked when setting up her own consulting company proved challenging.
“When I first moved to Italy, there was much less information and advice available online from other expats about sorting out financial issues—Italy is notorious for its bureaucratic and often-changing financial rules,” she recalls.
“Until my Italian language abilities improved, I was unable to understand official government websites on my own and had to rely on others to explain the rules to me, which left me feeling frustrated and disempowered.”
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Asher wrongly assumed that local accountants would offer options and financial advice in her best interest.
She now wishes she had asked more probing questions, such as: “What else could I do to lower my tax burden?” “What other deductions can I claim?” “Would opening a company be more or less beneficial than freelancing in terms of taxes and bureaucracy?” “What other payments will I need to make, and when?” “What kind of documentation do I need to keep for deductions?”