Freelancing can be a great way to earn an income without a typical “9 to 5” job. It also allows you to build a portfolio as well as a list of references and contacts that may help you secure full time employment.
In Canada, there are rules surrounding the practice, and it’s important that you know and understand them before you take up a new side hustle.
Do I need a work permit?
In most cases, yes. You will need an open work permit or a self-employed visa if you are not a permanent resident or citizen. This is especially true if you plan on offering services to Canadians clients and work for more than one employer.
It is also mandatory to hold a valid social insurance number to legally work in Canada.
What if I am working for an international client?
If you are working for an international client, you may not require any additional permits, but if you engage in the Canadian job market, this changes. You will need to apply for and obtain the proper documentation before you begin.
Is there an option if I am self-employed?
If you are self-employed, you may be able to access a specific immigration pathway for those taking part in cultural or athletic activities. This program has been paused as of April 2026, but it may be re-opened in the future.
Can I work without a permit?
There are some very specific instances where one will not be required. Those include military personnel who are in the country for training, security or exchanges, foreign representatives and those visiting for short term business activities such as meetings.
Keep track of your taxes
If you earn an income and live in Canada, you will need to pay taxes on your earned income, inducing any monies made freelancing. As you will be considered self-employed, it will be necessary to keep track of this yourself, and you will need to file a T2125 form.
You will also be responsible for setting up your own pension plan contributions, extended healthcare insurance and contingency plans should you become injured or unwell and therefore unable to work.
Depending on the province you reside or work in, you may need to collect further sales taxes. In Saskatchewan and British Columbia, there is an additional PST (Provincial Sales Tax). In Quebec, there is the QST (Québec Sales Tax). These are separate from the GST (Goods and Services Tax) and the HST (Harmonized Sales Tax).
As Revenue Canada’s taxation laws tend to change frequently, it’s wise to consult the official website for the most up-to-date details. If needed, the services of a tax professional may come in handy.
Do I need to register as a small business?
In most cases, you will not require a provincial business license, but you will need to register for your GST or HST number if your revenue is greater than $30,000 in a year.
How can I find out more?
Canada’s immigration policies are often in a state of flux, which means it’s extremely important to ensure you have the most up to date information when it comes to working in the country. The Canada.ca website offers this, and it’s also a smart move to check provincial and municipal policies and regulations as well. Ontario and Quebec have regulations specific to the province, and some freelancing jobs, such as tutoring or consulting, may require regional licenses.
Avoid the risks
It’s important that you secure the proper permits to work in Canada, as failure to do so can be harmful to your immigration status. In today’s job market, many turn to freelancing to supplement their income or even as a full-time career. As a new Canadian citizen, it may be an attractive option, and with some basic knowledge of the system, it may be a side hustle that turns into a lucrative role for you.