Canada: Counting the costs

First things first. Canada may be a popular destination for Irish migrants, but this doesn't mean it’s cheap, although if you are moving from Dublin you may find it compares well.

A worldwide cost of living survey from Mercer, for example, ranks Vancouver as the most expensive Canadian city, at 142nd place, but Dublin, which is much more expensive, at 47th place.

Nonetheless, you will need to do your sums and try and get some savings together before you travel.

“Newcomers will find it tough at the start,” warns Cathy Murphy of the Irish Canadian Immigration Centre in Toronto, adding that the C$2,500 (€1,700) recommended by International Experience Canada (IEC), is simply not enough. “New arrivals must come with more."

Since the financial crisis, the Canadian dollar has strengthened significantly, but is currently experiencing another drop in value. In the year to September 30th, for example, it has hovered at an average of slightly below €0.68, climbing from a January low of €0.65. This means that rent of C$1,000 a month will equate to about €690 and a C$3.50 cappuccino comes to €2.40.

If you intend to buy a lot of Canadian dollars, it may be worth your while keeping an eye on the exchange rate (see

[ oanda.com ]

).

How much you will need in your bank account will also depend on where you go. Urban areas such as Toronto can be expensive compared with more rural locations.

According to government statistics from 2014, the average household can expect to spend about C$8,109 a year on household groceries, or C$156 a week. In Alberta this rises to C$168, but falls to C$149 in Quebec.

The cost of living in Vancouver, for example, can be high. Good quality is expensive and if you want to buy organic, it will cost far more than at home.

Fast food is not especially cheap either. A McDonald's Big Mac meal, for example, costs about C$5.69 (€3.90) in Canada, compared with about €3.64 in Ireland.

Alcohol is more expensive too. A decent bottle of wine will set you back at least C$17 and C$12-13 for a six-pack of beer, while bars are also expensive, “although the introduction of happy hour laws has improved things somewhat”.

Energy is one area where you might save. It can cost about C$15 a month for electricity in summer for a one-bedroom apartment and double that in winter. Petrol is also cheap, but buying a car can be expensive. You will pay at least C$2,000 15-year-old car.

Tax is another factor you will need to consider. If you are going to Canada to escape Ireland’s tax rates, you might want to think twice or try to earn more.

Tax rates vary depending on the province. On a single income of about €35,000 (C$51,730), for example, you will take home between €27,093 (Quebec) and €29,452 (Nunavut), according to figures compiled by PricewaterhouseCoopers. In Ireland, you will take home €28,442.

Increase your income, however, and Canada comes out on top. Indeed a salary of €50,000 will leave you with take-home pay of €36,017 in Ireland, compared with €36,519 in Quebec and €40,332 in Nunavut.

On €100,000 you will get to keep between €63,830 in Quebec and €73,328 in Nunavut, compared to €60,518 in Ireland.

The differential for married couples with one income and children is not as great, with an income of €100,000 generating a difference of just about €1,100 in favour of Canada for example. But at the lower level of €35,000, the family gets to keep €33,711 in Ireland – €4,916 more than in Canada.

Whereas child benefit used to be divided into the Canada Child Tax Benefit (CCTB), which was tied to income, and the Universal Child Care Benefit (UCCB), it has recently been changed to be entirely means-tested. It is affected by how many children you have and how old they are, and the province or territory of residence. No child benefit is available if your income exceeds C$200,000 per year.