Canada Investor Immigration: What Remains After Programme Closures

Canada terminated its Federal Immigrant Investor Programme (FIIP) and Federal Entrepreneur Programme in June 2014, eliminating the most straightforward paths to Canadian permanent residency through passive investment. Quebec maintained its own Quebec Immigrant Investor Programme (QIIP) until it was suspended in 2019, and that suspension has been extended repeatedly. For investors and entrepreneurs seeking Canadian permanent residency, the remaining options are narrower, more competitive and require significantly more active engagement than the programmes they replaced.

What Was Lost

Federal Immigrant Investor Programme (FIIP) — Closed 2014

• Required: Net worth of CAD 1,600,000 and an investment of CAD 800,000 in a government-guaranteed, interest-free five-year bond
• The investment was fully returned after five years
• No requirement to start a business, create jobs, or reside in a particular province
• Essentially a guaranteed-return loan to the Canadian government in exchange for permanent residency
• Over 130,000 investors were admitted under the programme before its closure

Quebec Immigrant Investor Programme (QIIP) — Suspended 2019

• Required: Net worth of CAD 2,000,000 and a CAD 1,200,000 investment through a financial intermediary (or a CAD 350,000 non-refundable contribution option)
• Operated under Quebec's separate immigration authority
• The programme has been suspended since November 2019, with the most recent extension through March 2026
• While technically not abolished, IRCC and Quebec have given no indication of reopening

Current Pathways

1. Start-Up Visa Programme

The Start-Up Visa (SUV) is Canada's primary entrepreneurial immigration pathway. It targets founders of innovative businesses with the potential to create jobs and compete globally.

Requirements:

• Qualifying business: The applicant must have a commitment from a designated organisation:
  • A designated venture capital fund willing to invest at least CAD 200,000, or
  • A designated angel investor group willing to invest at least CAD 75,000, or
  • A designated business incubator willing to accept the applicant into its programme
• Language proficiency: CLB 5 (Canadian Language Benchmark level 5) in English or French, demonstrated through IELTS or CELPIP (English) or TEF (French)
• Settlement funds: Sufficient funds to support the applicant and their family upon arrival (ranging from CAD 13,757 for a single applicant to CAD 35,254 for a family of seven, based on the Low Income Cut-Off)
• Education: No formal education requirement, though the designated organisation will assess the applicant's capability

Key Features:

• The programme grants permanent residency, not a temporary visa. Upon approval, the applicant and dependants receive PR directly.
• Up to five founders may be included in a single start-up application, each receiving PR.
• The business must be incorporated in Canada, with each applicant holding at least 10% of voting rights. The applicants must collectively hold more than 50% of voting rights.
• The applicant need not be the sole or majority owner.

Processing:

• Application filed with IRCC after securing a commitment letter from a designated organisation
• Processing time: 12-36 months (significant backlogs exist; IRCC has been working to reduce wait times)
• Application fee: CAD 1,625 per adult, CAD 225 per child
• Right of Permanent Residence Fee: CAD 575 per adult

Practical Reality:

The SUV is not a passive investment programme. It requires a genuine, innovative business idea that a designated organisation is willing to back. Applications involving generic businesses (restaurants, real estate development, import/export) will not receive designated organisation support. The programme has also faced criticism for long processing times and low approval rates for certain business types.

2. Provincial Nominee Programmes (PNPs)

Each Canadian province and territory operates its own immigration programme under agreements with the federal government. Several PNPs include entrepreneur or business immigration streams:

British Columbia — Entrepreneur Immigration (Regional Pilot)

• Investment: CAD 200,000 minimum in a new or existing BC business
• Job creation: At least 1 full-time job for a Canadian citizen or permanent resident
• Net worth: CAD 300,000 minimum
• Business experience: At least 3 years of active business management in the preceding 10 years
• The applicant must reside in a designated regional community

Ontario — Entrepreneur Stream

• Investment: CAD 600,000 (Greater Toronto Area) or CAD 200,000 (outside GTA)
• Job creation: At least 2 permanent full-time jobs (GTA) or 1 job (outside GTA)
• Net worth: CAD 800,000 (GTA) or CAD 400,000 (outside GTA)
• Business experience: At least 2 years in the preceding 5 years
• EOI-based selection system

Saskatchewan — Entrepreneur Category

• Investment: CAD 300,000 (Regina/Saskatoon) or CAD 200,000 (other communities)
• Net worth: CAD 500,000
• Job creation: At least 2 full-time jobs for Canadian citizens or permanent residents
• Active management role required

Manitoba — Business Investor Stream

• Investment: CAD 250,000 (Winnipeg) or CAD 150,000 (outside Winnipeg)
• Net worth: CAD 500,000
• Business experience: At least 3 years in the preceding 5 years
• Exploratory visit to Manitoba required

PNP Process:

PNP entrepreneur streams typically operate on a two-stage process:

1. Temporary work permit issued to allow the applicant to establish and operate the business
2. After meeting business performance criteria (12-24 months), the province nominates the applicant for permanent residency
3. IRCC processes the PR application (additional 12-18 months)

Total timeline from application to PR: 3-5 years.

3. Self-Employed Persons Programme

This federal programme targets individuals who have relevant experience in cultural activities (artists, musicians, writers) or athletics at an international level, and who can make a significant contribution to Canadian cultural or athletic life.

• Experience: At least 2 years of qualifying experience in the 5 years preceding the application
• Selection criteria: Assessed on experience, age, education, language ability and adaptability (minimum 35 points out of 100)
• No minimum investment: But the applicant must demonstrate the ability and intention to be self-employed in Canada
• Processing time: 22-48 months

This is a niche programme unsuitable for general investors or business owners.

4. Express Entry (Skilled Worker Programmes)

While not investor-specific, wealthy individuals with professional qualifications may qualify through Express Entry:

• Federal Skilled Worker Programme: Points-based selection for skilled professionals
• Canadian Experience Class: For individuals with Canadian work experience
• Federal Skilled Trades Programme: For qualified tradespeople

These programmes do not require investment but demand specific professional qualifications, language proficiency and Canadian work experience or job offers.

Tax Implications of Canadian Residency

Canadian permanent residents are taxed on worldwide income. The tax implications are substantial:

• Federal income tax: Progressive rates from 15% to 33% on taxable income above CAD 235,675
• Provincial income tax: Additional 4-21% depending on province (combined top rates: 48.35% in BC, 53.53% in Ontario, up to 54.80% in Nova Scotia)
• Capital gains tax: 50% of capital gains are included in taxable income (increasing to 66.7% for gains above CAD 250,000 from June 2024 per Budget 2024)
• Foreign reporting: Form T1135 (Foreign Income Verification Statement) required for foreign property with a cost exceeding CAD 100,000
• No exit tax on immigration: Canada does not impose an entry tax, but the cost base of foreign assets is stepped up to fair market value on the date of immigration (deemed acquisition rule)
• Departure tax on emigration: When ceasing Canadian residency, a deemed disposition of most assets triggers CGT (Section 128.1 of the Income Tax Act)
• FAPI (Foreign Accrual Property Income): Income earned by controlled foreign affiliates is attributed to Canadian-resident shareholders

The combined top marginal rate exceeding 50% in most provinces, plus the new 66.7% capital gains inclusion rate, makes Canada one of the highest-tax jurisdictions for wealthy individuals.

Comparison with Other Investor Immigration Programmes

Feature	Canada (SUV)	Canada (PNP)	US (EB-5)	UK (Innovator)	Australia (SIV)
Min. investment	None specified	CAD 150K-600K	USD 800K	None specified	AUD 5M
Active management	Yes	Yes	No (Regional Centre)	Yes	No
Processing time	12-36 months	3-5 years	2-5 years	3-6 months	12-18 months
Language requirement	CLB 5	Varies	None	B2 English	IELTS 5.0
Path to citizenship	3 years PR	3 years PR	5 years	3 years + 12 months	4 years + citizenship

Key Takeaways

• Canada's passive investor immigration programmes (FIIP and QIIP) are closed or suspended. There is no current pathway to Canadian PR through a guaranteed-return investment.
• The Start-Up Visa is the primary federal route but requires a genuine, innovative business endorsed by a designated VC fund, angel group, or incubator. Processing times of 12-36 months and high selectivity make it unsuitable for passive investors.
• Provincial Nominee Programmes offer entrepreneur streams with investment requirements of CAD 150,000-600,000, but require active management, job creation, and residence in the nominating province. Total timeline to PR is 3-5 years.
• Canada taxes permanent residents on worldwide income at combined federal-provincial rates exceeding 50%. The 2024 increase in the capital gains inclusion rate to 66.7% above CAD 250,000 has made Canada significantly less attractive for wealthy investors.
• The deemed disposition on departure means that leaving Canada after establishing PR triggers immediate CGT on appreciated assets. Pre-immigration planning to step up cost bases on entry is essential.
• For wealthy individuals seeking Canadian PR, the landscape is fundamentally different from 2014. The remaining options require active business involvement, innovation credentials, or niche professional qualifications.