'Can I afford to be a snowbird?' A practical FAQ guide for retirees

Ever found yourself dreaming of warm, sandy beaches while you shovel mountains of snow each winter just to get out of the house? You’re not alone.

Nearly 400,000 Canadian retirees take extended trips to the U.S. and Mexico for warmer temperatures and leisure activities each year. These border-hoppers are commonly referred to as snowbirds because, like the majestic Canada Goose, they migrate south for winter.

The benefits of being a snowbird 

So why do snowbirds flock to the United States for the winter? Escaping the Great White North each winter can have many benefits, including:

• Enjoying your favourite outdoor activities year-round.
• Exploring your sense of adventure with new destinations.
• Changing the day-to-day without going too far outside of your comfort zone.
• Finding new community in exciting new places.
• Taking advantage of Southern winters without relocating permanently.

Snowbirds are able to migrate South each winter because of the strong relationship between Canada and the U.S. However, you might still have many questions to ask before bidding farewell to blizzards and puffy jackets this winter. 

Considering a winter escape? Begin your snowbird journey confidently with our guide answering all your questions.  

Can I own U.S. property? 

Yes, as a Canadian citizen, you can buy U.S. real estate. Many snowbirds prefer to own a vacation home down south, rather than renting or staying in hotels. Your vacation home could also be a source of income while you are away, as you can list it as a short-term rental.  

• Work with local realtors and a lawyer versed in international property laws. 
• Find a contact on the ground in your snowbirding community who can check on your vacation home while you’re in Canada. 
• Consider proximity to social supports and leisure activities when selecting a location.  

Does dual residency affect citizenship? 

No, owning property in the United States does not grant you residency status or impact citizenship.  Vacationers and retirees alike need to know what visa and citizenship rules apply wherever they go.  

• Canadians can typically visit the U.S. for up to 180 days (6 months) without a visa.  
• There are possible residency and tax implications if you stay longer or visit for several months at a time in consecutive years.
  
  

Will I have to pay U.S. taxes as a snowbird? 

For the average vacationer, no, you won’t have to pay U.S. taxes. But it becomes more likely the longer you spend in the U.S. Retirement should be a time to relax, so make sure you plan ahead to avoid any unwanted financial anxiety—or a surprise tax bill! 

• If the IRS deems you a “resident” per their Substantial Presence Test, you will have to file a U.S. tax return and could owe taxes to the IRS. 
• To confidently avoid taxation, stay no more than 120 days (4 months) annually and maintain your residence in Canada. 
• Always report any rental income earned to the IRS regardless of how long you stay. 
• Consult an expert informed in the Canada-US Income Tax Treaty, federal, property and capital gains taxes. 

How can I access healthcare?

Requiring additional healthcare services in retirement is a natural part of aging, so make sure you’re prepared to access (and possibly pay for) your care down south.  

• Follow residency rules to retain provincial health benefits. In BC, you can leave the province for up to 212 days (7 months) before jeopardizing your MSP coverage.  
• MSP benefits will cover some services out of the country, but the covered amount may only pay part of the bill. Be prepared for higher U.S. medical expenses. 
• Before you go, sign up for traveler's insurance so you have coverage while you're out of Canada. Policies tend to more affordable if you buy a longer plan upfront, so consider how long you will stay and if longer coverage gives you better value.

How can I secure my home in Canada while I’m away? 

If you’ll be away for an extended stay, you may be worried about your home in B.C. sitting empty and vulnerable. Fear not—there are measures you can take to ensure your home is safe and sound for your arrival back in Canada.   

• Invest in security systems and motion lights. 
• Double-check that your smoke alarms have working batteries to alert neighbours in case of fire. 
• Forward your mail and stop any subscriptions to avoid appearing away. 
• Hire a housesitter or enlist a family member to deter intruders and comply with snow removal bylaws. 

Can I afford to be a snowbird? 

If trading in pine trees for palm trees is must-have in your retirement plan, you have options to make it a reality. There are lots of options in different financial ranges for snowbirds—you could purchase or rent a residence, fly or drive down, stay two weeks or twelve. The important part is ensuring you can fund it comfortably without sacrificing your other retirement goals.   

• Budget for both residences, factoring in accommodation, property tax, travel, medical, currency exchange, legal fees and dual utilities.  
• Retain funds for unforeseen medical or travel emergencies. 
• Assess impacts on retirement income and estate planning with a financial advisor. 

How do I manage bills for two homes? 

Beyond simply affording the lifestyle, being a snowbird can mean dealing with some complex administrative processes.  

1. Open a USD bank account and credit card to separate expenses. 
2. Set up automatic payments. 
3. Suspend non-essential utilities, like internet, while maintaining low winter heating to prevent pipe damage. 
4. Get one phone plan that includes both countries to avoid roaming and long-distance charges. 
5. Accumulate travel points through loyalty programs for discounts. 

What did I forget? 

Your circumstances may dictate a much longer to-do-list, so here are a few more things to think about: 

1. Make arrangements for someone to care for your pet & plants 
2. Clean out your garbage and refrigerator 
3. Pepare your care if it will be sitting idle for an entire winter  
4. Take precautions for extreme tropical weather  
5. Prepare for any health conditions that could be exasperated by the climate 
6. Note any travel hazards and plan ahead with alternative transportation options 

Our best advice? Research thoroughly and connect with experienced snowbirds for tips on migrating between winter and summer homes.  

If you want to discuss your individual situation to determine if the snowbird life is right for you, book an appointment to speak with an advisor.