There is a clear shift underway among Canadian retirees and high-net-worth individuals. In the face of rising taxes and mounting cost-of-living pressures, many are reevaluating their future—and increasingly, that future lies beyond Canada’s borders. Two destinations stand out: Portugal and Italy. With favorable tax regimes, significantly lower living costs, and structured pathways to European residency, the question of why Canadians are moving to Portugal and Italy is no longer theoretical—it’s strategic.
This new wave of interest is not just about lifestyle. It is about preserving wealth, accessing global mobility, and managing risk in a world where domestic tax and policy changes are becoming more unpredictable.
Tax Pressures and Financial Recalibration
The Canadian tax landscape has shifted meaningfully. In 2024, the capital gains inclusion rate rose from 50% to 67%, directly impacting those with secondary properties or investment assets. With public discussions around wealth taxation gaining momentum, many are taking steps now to restructure before additional changes take hold.
Alongside taxation, living costs in Canadian metropolitan areas continue to climb. By contrast, a move to Portugal can reduce monthly expenses by up to 40%, especially when it comes to housing, food, and healthcare. Italy’s residency structure includes a flat tax regime of €200,000 on global income—providing a predictable, legally compliant framework for income-earning expatriates.
These financial shifts have pushed relocation from a lifestyle preference to a long-term planning necessity, especially for Baby Boomers looking to retire with predictability and preserved capital.
Golden Visas and Growing Interest
Portugal and Italy have positioned themselves as two of the most appealing jurisdictions for Canadians seeking residency through investment. Despite recent reforms, Portugal’s Golden Visa remains available through qualifying investment funds and structured economic contributions. Italy’s investor visa continues to offer access through government bonds, corporate investments, or start-up capital deployment.
Michael Maxwell, founder of Portugal Panorama and Ariete Capital, recently visited Toronto and observed an accelerated rise in inquiries. “The response in Toronto has been stronger than ever,” he shared. “We’ve seen a significant increase in Canadians looking for flexibility, strong returns, and programs free from the risk of policy reversals. Portugal and Italy offer that balance.” For many investors, residency-by-investment is not just about access—it’s about assurance.
Investor Insights: Why Canadians Are Moving to Portugal and Italy
According to Werner Gruner of Get Golden Visa, the trend is clear: Canadian investors want diversified options, regulatory clarity, and investments with long-term potential. The priority is not speculation—it’s security. Gruner notes that clients consistently seek programs with a track record of stability, free from sudden policy shifts or ambiguous residency outcomes.
The real estate market reflects these preferences. Anne Brightman of the Brightman Group notes a strong uptick in interest across downtown Lisbon—particularly in Baixa and Chiado—where Canadians are drawn to walkable, heritage-rich neighborhoods that offer charm, infrastructure, and proximity to Lisbon’s international airport. These areas combine lifestyle appeal with long-term investment logic, making them natural targets for Golden Visa-linked purchases.
The Importance of Pre-Move Tax Planning
While the benefits are compelling, successful relocation requires discipline and foresight. Canadian citizens must address exit tax obligations, formally sever residential ties, and ensure compliance with tax treaties in their destination jurisdiction. Healthcare transitions and estate planning also play a critical role in cross-border strategy.
David Lesperance, founder of Lesperance Associates, underscores the risks of incomplete planning. “Without careful pre-immigration tax structuring, Canadians can face unexpected burdens—exit taxes, reporting obligations, and legal mismatches,” he explains. “A successful move requires proactive alignment across tax, legal, and residency frameworks. Anything less can lead to costly surprises.”
A New Chapter for Strategic Canadian Capital
So why are Canadians moving to Portugal and Italy in greater numbers? The answer is layered: reduced taxation, lower cost of living, flexible residency programs, and a shift in mindset toward future-proof living. For Baby Boomers, the move is often about retirement stability. For younger professionals, it’s about global access and fiscal sovereignty.
With Europe’s investor visa frameworks offering tested, legally backed programs, the Canadian outflow isn’t driven by fear—it’s driven by strategy. Portugal and Italy offer pathways to live well, invest wisely, and preserve capital—today and across generations.
