Immigrating to Canada through investment is a popular route for obtaining permanent residency and enjoying the benefits of living in this country. Canada has always welcomed immigrants and, over the decades, has greatly benefited from the services and advantages brought by foreign immigrants.
In addition to valuing skilled professionals and exceptional immigrants, the Canadian government places significant importance on investment applicants, offering special incentives, including permanent residency, to this group.
If you plan to immigrate to any country through investment, you can be assured that the government of that region will support you; Canada is no exception. However, due to the large number of applicants, there are specific laws and regulations in this area.
In this article from Sarafi Hafez, we will provide more details about the conditions for immigrating with an investment visa to Canada in 2024. Stay with us.
What is the best investment method in Canada?
The best investment method in Canada depends on your financial situation, amount of capital, and goals. The most popular investment methods in this country include buying or starting a business, entrepreneurship, startups, and purchasing bonds. Each of these methods has its own advantages and disadvantages, and the choice of which to pursue depends on your needs.
An important point to note is that Canada does not grant visas or residency to individuals who make passive or non-productive investments. In other words, the Canadian government only issues investment visas to those who use their funds to create or develop productive and value-added activities. Therefore, buying property or land in Canada will not qualify you for a visa.
However, the value-added aspect of your investment does not necessarily need to be financial; it could also be culturally or artistically beneficial to the people of Canada. In such cases, you can also obtain a Canadian investment visa.
Benefits of Canadian Residency through Investment
Obtaining Canadian residency through an investment visa in 2024 offers several significant advantages, some of which are outlined below:
- The Canadian investment visa allows you to bring your family members (spouse and children under 22 years old) with you from the start.
- During the validity of the visa, your spouse and children over 18 years old are permitted to work and can help support the family.
- Canada has excellent healthcare infrastructure, and you and your family can benefit from healthcare services and insurance upon arrival and receiving your social insurance number.
- Canada ranks among the top 5 countries globally in terms of education, and your children’s education in public schools will be very affordable. Additionally, the high quality of universities provides exceptional opportunities for further education for young people.
- Social security in Canada is high, and crime rates are low in most cities.
- Canada boasts a dynamic economy and a broad market, offering numerous investment opportunities across various sectors.
- The positive economic indicators in Canada mean that not only can you achieve permanent residency, but you can also expect to earn substantial profits and improve your family’s economic situation.
These are just some of the benefits of immigrating to Canada with an investment visa.
Disadvantages of Canadian Residency through Investment
However, immigrating to Canada through investment also has some disadvantages and specific challenges that you should consider:
- Compared to other immigration methods, you will need a relatively large amount of capital. Part of this capital is required to cover family expenses during the first one to two years of residency, while the majority is needed for your net investment in the active market of the country.
- The process of obtaining a Canadian investment visa can be longer compared to some other immigration methods, and processing times for applications can be extended.
- Immigration through investment involves significant legal complexities and requires various guarantees. You must be able to convince immigration officers, based on your business plan and preparations, that your intention is genuinely to invest in the economy or culture of Canada.
- The return on investment in this method is slow. In other words, after setting up a business in Canada, you may need to work continuously for up to two years to cover your expenses and make your business profitable.
- Individuals who obtain a Canadian visa through this method (the applicant) are not permitted to work for other employers during the validity of the visa and are required to focus on developing their business.
Investment Visa in Canada through Entrepreneurship
Individuals who wish to establish a company or purchase an active business in Canada can apply for permanent residency through the entrepreneurship visa. In this method, you are required to create jobs for Canadian workers and contribute to the growth of Canada’s economy.
To succeed in this immigration program, you need to have a robust business plan and secure the necessary initial capital. Your business plan should be compelling enough to convince immigration officers that your business will benefit the people of Canada.
Typically, individuals who want to immigrate to Canada through an entrepreneurship visa will need a minimum of CAD 210,000 in net initial capital (in 2024). This amount is significantly lower compared to some other advanced countries, such as the United States.
Investment in Canada through Business Purchase
To have a productive investment in Canada and obtain an entry and permanent residency visa, you can consider buying an existing company in addition to starting a new business.
Buying a company in Canada is a direct and effective method for immigration and obtaining permanent residency. To do this, you first need to find a reliable and trustworthy business and purchase its entire stock.
The main advantage of this method is that it saves you from the hassles of starting a business from scratch (such as finding suitable property, purchasing equipment, etc.), as everything is already set up, and you only need to take over management.
In other words, employees are hired, advertising and branding are done, equipment and supplies are purchased, and all prerequisites are in place. While you are allowed to make changes, you do not need to start from zero.
Additionally, instead of buying the entire stock of a company, you can also obtain a Canadian visa by purchasing at least 51% of its shares.
The major challenge in this path is finding a business that is trustworthy and worth the investment it claims to be. Unfortunately, many businesses available for sale do not live up to their claims and can sometimes be fraudulent. Therefore, having a reliable consultant in Canada to verify the business is crucial.
Investment in Canada through Real Estate Purchase
As mentioned, to obtain a visa and permanent residency in Canada, your investment must be in an active and productive sector. Therefore, purchasing property or a house in Canada alone will not qualify you for a visa. However, if you meet the necessary conditions, you can consider purchasing property after immigrating to Canada, as the real estate market in the country has good profit potential and is considered a desirable investment opportunity.
Some individuals who receive a Canadian investment visa prefer to earn income through real estate transactions, as they are not permitted to work for other companies.
Additionally, owning property in Canada (with ownership rights) can ultimately contribute to your informal points for obtaining permanent residency in the country.
Investment in Canada through Bond Purchases
Investing in bonds is considered a secure and low-risk method for immigration to Canada. This approach is particularly suitable for individuals who wish to make low-risk investments and benefit from fixed returns and investment security.
However, since 2017, Canada has imposed significant restrictions on the sale of bonds to immigrants and does not permit the purchase of government bonds for this purpose. Therefore, obtaining a Canadian visa may only be possible through the purchase of private institution bonds.
Due to the stringent regulations associated with this immigration method, we generally do not recommend it, as the success rate is quite low, and the risk and cost involved may not be justified.
Canada’s Investment Programs
To obtain a Canadian investment visa, you have various options available. In addition to federal government programs, you can also apply for a visa through provincial investment programs.
Provincial Nominee Programs (PNPs) in Canada are not limited to work visas; each province, depending on its needs, announces opportunities for attracting investors in various sectors.
For example, in a given year, individuals interested in investing in technology might have better chances of obtaining permanent residency in Quebec compared to Ontario, or vice versa.
Individuals who meet the requirements for success in provincial investment programs will have a higher chance of obtaining Canadian permanent residency. Therefore, if you are interested in investing in Canada, it is advisable to review the PNP programs and priorities and apply directly to them.
However, individuals applying through provincial investment programs are required to reside in the same province for the duration of their visa, although after obtaining permanent residency, they can move to any province of their choice.
Requirements for Obtaining Canadian Permanent Residency through Investment
To obtain Canadian permanent residency through investment, you must meet specific criteria. Similar to work and study visas, this type of visa requires particular documents and prerequisites that are unique to the investment process.
Below are the key conditions for obtaining Canadian permanent residency through investment:
General Requirements for Obtaining Canadian Permanent Residency through Investment
To obtain Canadian permanent residency through investment in 2024, you must meet the following general requirements:
- Minimum Investment Capital: Have at least the minimum required investment capital for a business, aside from financial ability. Depending on the method, this generally ranges from CAD 50,000 to CAD 200,000.
- Work Experience: Possess a minimum of 3 years of continuous managerial experience within the past 5 years.
- Educational and Professional Background: Hold relevant educational qualifications and work experience related to the business you intend to establish or purchase.
- Financial Proof: Demonstrate financial capacity to support yourself and your family for the first one to two years in Canada. The amount required depends on the province of residence and the specific immigration program.
- Business Plan: Provide a strong and convincing business plan, which is crucial for the success of your investment immigration to Canada. The plan should detail how your business will positively impact the Canadian economy or culture and outline your revenue generation strategies.
- Language Proficiency: Have proficiency in English or French.
- Background Check and Health Certification: Obtain a certificate of no criminal record and medical clearance.
Steps to Obtain Canadian Permanent Residency through Investment
To achieve permanent residency in Canada through investment, follow these steps:
- Select the Appropriate Immigration Program: Choose between federal or provincial programs, and decide whether you will purchase an existing business or start a new one, as well as whether you will focus on entrepreneurship or a startup.
- Research the Business Type: Conduct thorough research to identify a business that matches your experience, background, and skills.
- Prepare a Strong Business Plan: Develop a compelling business plan that details the positive impact of your activity on the Canadian economy or culture and outlines your revenue generation strategies.
- Prepare Preliminary Evidence: Provide evidence that demonstrates your commitment to executing the business plan.
- Gather Required Documents: Accurately prepare all necessary documents for the selected immigration program.
- Submit Your Application: Register and submit your application through the Canadian immigration system.
- Interview: Attend an interview if required by immigration officials.
- Visa Issuance and Travel: Obtain your visa and travel to Canada.
- Obtain Permanent Residency: Achieve permanent residency after several years of economic activity
Language Requirements for Canadian Immigration through Investment
Almost all immigration pathways to Canada require a valid English or French language certificate. However, for investment immigration methods, language proficiency is not as high a priority.
One of the significant advantages of immigrating to Canada with an investment visa in 2024 is that you do not need a high language proficiency score. In most cases, a General IELTS score of 5 to 6 is sufficient.
Factors Affecting Language Requirements for Canadian Immigration through Investment
In general, the higher your managerial experience, work history, personal achievements, and investment level, or the more aligned your profile is with provincial investment criteria, the less you will need a high language score.
Naturally, some investment immigration programs may require a higher language score. The type of business you choose to buy or start will also influence the minimum required language score.
Processing Time for Canadian Investment Visas
A significant drawback of the Canadian investment visa is the processing time for immigration applications. While other immigration programs, such as study or work visas, typically provide results within 2 to 6 months, investment visa programs have a processing time of 12 to 24 months.
Depending on the type of program applied for, individual circumstances, document readiness, and application volume, you may experience a shorter or longer waiting period. However, this provides ample time to prepare for immigration and address any deficiencies in your application.
Immigrating to Canada through Investment and Receiving a Startup Visa
Entrepreneurs looking to establish an innovative and new business can apply for immigration to Canada through the Startup Visa Program.
For years, the Canadian government has implemented special support programs to encourage innovative businesses. However, it is essential to note that the profitability of startups has led the government to view this visa as a long-term investment, granting permanent residency to qualified applicants.
Conditions for Obtaining a Canadian Startup Visa
To qualify for a Canadian Startup Visa, you must meet the following conditions:
- Your business idea must be innovative and creative (startups often operate in emerging technologies).
- Provide a strong and convincing business plan that justifies the profitability of your idea.
- You must be supported financially by one of the Canadian-approved institutions.
- Have sufficient financial resources to support yourself and your family.
You can also personally finance the startup of your business by collaborating with Canadian supporting companies. In addition to the above, you will need general documents such as work experience, personal achievements, educational credentials, and an adequate language proficiency certificate.
In 2024, you will need at least CAD 75,000 as initial capital to establish a startup company.
Steps to Obtain a Canadian Startup Visa
The steps to obtain a Canadian Startup Visa are:
- Develop an idea for starting an innovative and creative business in a field you are familiar with and preferably have expertise in.
- Submit a strong and convincing business plan.
- Enter into a partnership agreement and obtain a letter of support from a Canadian supporting organization.
- Prepare your documents and submit your application to the Canadian immigration authorities.
Benefits of Immigrating to Canada through a Startup Visa
The main benefits of immigrating to Canada through a Startup Visa include:
- No need for a large initial investment.
- No requirement for a high language proficiency score.
- Possibility of applying as a group (in the Startup Visa program, you can apply as a group of up to five people, and if the application is approved, each member can bring their family).
- Obtaining a residence visa for a minimum of 3 to 5 years.
- Access to government support and financial assistance (such as tax incentives or bank loans).
Immigrating to Canada through the IMP Work Visa
For individuals who wish to immigrate to Canada for work but do not have sufficient funds for investment immigration programs, the IMP (International Mobility Program) work visa offers an alternative.
The IMP is a subset of the Canadian immigration program that allows the federal government to issue residency visas to job seekers whose activities can benefit Canada economically, socially, or culturally.
The IMP work visa is available in two forms: the Work Permit and the Open Work Permit. With the Work Permit, applicants typically have a job offer from a Canadian employer, whereas the Open Work Permit does not require a job offer. Both types of IMP work visas are attractive because they do not require an LMIA (Labour Market Impact Assessment).
Benefits of Immigrating to Canada through the IMP Work Visa
- No need for an LMIA
- Opportunity to gain work experience in Canada
- Possibility of transitioning from an IMP work visa to permanent residency in Canada
- Potential for intra-company transfer for those establishing a branch of their company in Canada
Conditions for Obtaining an IMP Work Visa
To qualify for an IMP work visa, you must meet one or more of the following conditions:
- Have a valid job offer from a Canadian employer (for Work Permit)
- Possess professional qualifications and sufficient technical skills
- Hold at least a bachelor’s degree and have relevant work experience (minimum of 2 years of continuous work within the last 5 years)
- Demonstrate sufficient financial resources
Steps to Obtain an IMP Work Visa
Note that within the broad category of IMP visas, there are various immigration programs with slightly different procedures. However, the general steps to obtain an IMP work visa include:
- Obtain and present a valid job offer
- Extend the job offer through the employer if necessary and if the processing time is prolonged
- Submit a visa application
- Receive the visa and enter Canada
The IMP is considered one of the simplest and fastest ways to obtain a Canadian visa.
Required Documents for the IMP Work Visa
- A valid passport with at least 6 months of validity
- Translated identity documents for yourself and family members
- Educational credentials
- Proof of work experience
- Financial proof
- Job offer letter (if required)
- Language proficiency certificate (if required)
Final Thoughts
The Canadian investment visa is one of the most effective ways to immigrate to the country. Although this method requires a significant amount of capital and the application processing time can be lengthy, it offers benefits that are certainly worth the effort. Individuals who immigrate to Canada through this route have a high chance of obtaining permanent residency and eventually, Canadian citizenship.
In this article, we have reviewed the conditions for the Canadian investment visa in 2024. We hope this information has been useful to you.
Frequently Asked Questions
What is the minimum and maximum investment required for immigration to Canada?
You can invest in Canada with as little as $50,000 through some programs, but there is no maximum limit set. However, to increase your chances of having your immigration application accepted, we recommend considering a minimum initial investment of $150,000 CAD.
Can I work in Canada while holding an investment visa?
No, as the visa holder, you are required to actively engage in your own business and are not permitted to work for other employers. However, your eligible spouse and children will have the right to work.
How long does it take to obtain a Canadian investment visa?
The process can take between one to two years.
