Working from home always sounds like a dream. You set your own hours, and potentially earn in USD or CAD. For many Nigerian immigrants moving to Canada, the idea is tempting—especially when you’re trying to build a new life, juggle family responsibilities, and pursue permanent residency (PR).
But there’s a fact you shouldn’t ignore. Freelancing as an immigrant in Canada isn’t a straight path. In fact, it’s riddled with complications you might not even know about until it’s too late.
This article doesn’t aim to scare you away. Instead, it’ll help you understand how you can be empowered with the real, legal, and financial information you need to make informed decisions. If you’re considering freelancing—full-time, side hustle, or as a future plan—this blog post is for you.
Also, you can read more in-depth series on Freelancing in Canada vs. Nigeria: What You Need to Know. (Be sure to check that out for broader insights.)
The Legal Reality – Work Permit Limitations
In Canada, your ability to freelance legally depends heavily on your immigration status.
A. Work Permit Holders
If you came into Canada through a work permit, you’re likely tied to a specific employer. According to the Immigration, Refugees and Citizenship Canada (IRCC), employer-specific work permits (also known as closed work permits) restrict you from working elsewhere.
So what does that mean for freelancing?
- You can’t legally take freelance gigs unless your permit allows you to work for multiple employers or be self-employed.
- Even if you’re just doing freelance gigs for clients outside Canada (say, Nigerian clients paying in Naira or USD), you’re still technically violating the conditions of your permit.
B. Open Work Permit or Post-Graduation Work Permit (PGWP)
These offer a bit more flexibility. If you’re on a PGWP or open work permit, you may be able to freelance, but it still has to comply with Canadian labor laws and tax rules.
Remember: Even with the freedom to freelance, you’ll need to register your business, get a GST/HST number (if your income exceeds \$30,000 annually), and report your earnings.
C. Refugee Claimants, Visitors, and International Students
If you’re in Canada under any of these categories, you’re not legally allowed to freelance. Any work—freelance or otherwise—without authorization can jeopardize your future immigration status.
The Permanent Residency (PR) Puzzle
Freelancing might delay or complicate your path to PR. Why?
A. Points System & Job Types
Canada’s PR system (especially under the Express Entry system) values consistent, full-time, skilled work experience. Freelance work often lacks the documentation or NOC classification required to count as valid Canadian experience.
According to the Express Entry Comprehensive Ranking System (CRS), permanent jobs with employer references typically rank higher than sporadic, undocumented freelance work.
B. Employer Reference Letters
To prove work experience, you’ll need official letters from employers detailing your job role, hours, and wages. As a freelancer, this gets tricky unless you:
- Have long-term clients willing to issue formal reference letters.
- Use structured platforms like Upwork or Fiverr that log your work history and payments.
Still, many immigration officers may not treat gig work the same as a traditional job.
The Income Stability Issue – Freelancing Isn’t Always Predictable
When you’re new to Canada, financial stability is non-negotiable. You’ve got rent, groceries, possibly dependents, and immigration processing fees. In this context, freelancing might not be your best financial anchor.
A. Irregular Cash Flow
Unlike salaried jobs, freelancing doesn’t guarantee consistent income. One month, you might make $4,000. The next? $500 or less.
Here’s an example: If Blessing moved to Alberta in 2022 on a PGWP. She began freelancing as a graphic designer and initially earned about $2,000/month. But by the third month, clients ghosted her. She had no backup savings, couldn’t pay rent, and had to take a temp job unrelated to her skills just to survive.
That’s a harsh but common story.
B. Currency and Platform Fees
If you’re freelancing for clients outside Canada, you’re likely getting paid in USD, EUR, or NGN. Now add these:
- Conversion losses when transferring funds into CAD.
- Platform commissions (Upwork takes up to 20%).
- Canadian bank charges.
It adds up fast, and it hurts.
C. No Employment Benefits
As a freelancer, you don’t get health insurance, parental leave, or even Employment Insurance (EI). Unless you opt into the Canada Pension Plan (CPP) as a self-employed person, you might also miss out on retirement savings.
When you’re an immigrant balancing PR, integration, and survival, that’s a big gap.
Quick tips: Apps like Wave, QuickBooks, and FreshBooks are great tools to manage freelance finances in Canada.
Taxation, Registration, and the “Business” of Freelancing
A lot of people don’t realize that in Canada, freelancing is self-employment—and that comes with a whole new set of responsibilities.
A. You’re Running a Business
Even if you don’t have an office or a brand, you’re considered a sole proprietor. That means:
- You must track all income and expenses.
- You must file self-employment taxes.
- You may need to collect GST/HST once your income crosses $30,000/year.
B. Tax Deadlines Are Different
Freelancers don’t follow the regular employee tax cycle. Your tax filing deadline is usually June 15 (but payments are due by April 30). Miss it? You face penalties.
You’re also required to pay both employer and employee portions of CPP. That’s 10.9% of your income straight to government pensions.
C. Bookkeeping Is Not Optional
You’ll need to keep receipts, invoices, and maybe even hire an accountant. CRA can audit freelancers, especially if your numbers don’t match deposits.
Apps like Wave, QuickBooks, and FreshBooks are great tools to manage freelance finances in Canada.
D. Immigration Implications
Many immigrants assume “working is working.” But being self-employed and not reporting your income accurately can be seen as immigration fraud.
If IRCC reviews your tax record and sees discrepancies between your work claims and CRA filings, your PR or citizenship application could be at risk.
Don’t risk it.
Benefits, EI, and CPP: What Freelancers Miss Out On (And Why It Matters)
One of the lesser-discussed downsides of freelancing in Canada is the lack of access to vital social benefits—especially as an immigrant trying to build a life from scratch.
Let’s break it down:
a. Employment Insurance (EI) Exclusion:
Freelancers, unless they voluntarily opt in and meet specific conditions, aren’t eligible for EI. This means if you fall sick, lose contracts, or need parental leave, you may have zero backup. According to the Government of Canada, EI is primarily for employees who pay premiums through their employers. Self-employed individuals must register for special benefits, and even then, access is limited.
Reference: Government of Canada EI for Self-Employed
b. No Employer Pension Contributions (CPP):
The Canada Pension Plan is a big part of your long-term stability, especially if you’re planning to stay permanently. As a freelancer, you’re responsible for paying both the employer and employee portions of CPP—double the amount. This can be financially draining and easily overlooked.
c. Healthcare is Covered—but Everything Else Isn’t:
While basic health services are covered by provincial insurance plans (like OHIP in Ontario), things like dental, prescriptions, and therapy are often covered by employer-sponsored benefits—something freelancers don’t get unless they buy private insurance, which can be costly.
d. Why This Affects Immigrants Deeply:
As a newcomer, you’re already navigating financial constraints, building credit, and trying to support family either locally or abroad. Not having these safety nets means you’re walking a tightrope. A bad month isn’t just a bump—it could be a crisis.
The Challenge of Building Credit and Housing History
Let’s talk about the real pressure cooker of freelancing in Canada: proving yourself on paper.
When it comes to renting an apartment, applying for a credit card, or even buying a phone on contract, you’ll often hear the dreaded request:
“Can you send in your two most recent pay stubs?”
Now, if you’re freelancing, what do you do?
a. Freelance Income Is Often Seen as “Unreliable”
Canadian landlords and credit agencies want proof of steady income. This usually means consistent monthly paychecks from an employer, not sporadic payments from Fiverr or direct clients. Even if you make good money, irregular deposits from international sources are red flags.
b. Why Newcomers Suffer More:
As a new immigrant, you likely have:
- No Canadian credit history
- No previous landlords to vouch for you
- No employment letters or long-term job contracts
Freelancing, unfortunately, makes this even harder. This can lock you out of safe housing options or make you vulnerable to bad landlords.
c. Solutions That Work (Sometimes):
- Register a business and get invoices – show you’re organized
- Use Canadian invoicing tools like Wave or QuickBooks Canada
- Save proof of contracts and regular payments from platforms like Upwork
- Get a co-signer or apply for housing through immigrant-friendly organizations
You can also build a personal financial portfolio through agencies like KOHO or Billi which cater to gig workers.
Emotional and Professional Isolation: The Cost of Going It Alone
Let’s be honest—freelancing is lonely. And for immigrants navigating a new culture, system, and climate, that loneliness can quickly spiral into burnout.
a. The Mental Load of Freelancing Alone:
You’re your own boss, accountant, marketer, project manager, and HR department. If you don’t finish that proposal or file your taxes, no one’s coming to save you.
Now imagine doing that while also:
- Trying to understand Canadian communication norms
- Learning local market pricing
- Building a network from scratch
b. Lack of Mentorship and Networking:
Most immigrants come from environments where career growth is closely tied to who you know. In Canada, this is even more important. But freelancers often miss out on mentorship and professional feedback. You’re not in an office. You’re not around people who can recommend you.
c. Practical Solutions for Real Connection:
- Join co-working hubs like StartWell or Make Lemonade in major cities
- Attend immigrant-focused networking events via ACCES Employment
- Use tools like Ten Thousand Coffees to connect with industry mentors
- Start or join professional circles on Anutio and meet great connections worldwide
Note:
You’re not weak for needing community. Integration doesn’t just mean finding work—it means finding people, too.
What You Can Do Instead (Or Alongside Freelancing)
Here’s where it gets hopeful. Just because freelancing might not be ideal on its own, doesn’t mean it has no place in your career toolkit.
a. Blend Freelancing With Part-Time or Contract Roles
Look for contract-based work with Canadian companies. These often offer remote flexibility but still count toward PR applications.
b. Consider Internships, Co-ops, and Volunteering
Many Canadian companies love hiring people they’ve seen in action. Use platforms like:
c. Upgrade Your Skills While You Freelance
Take courses from:
These not only boost your confidence—they look great on immigration documents.
Practical Workforce Integration for Immigrants
At Anutio, we know the freelance journey can be chaotic—and we’ve built a system that helps make it structured.
Here’s what we offer:
- Smart job-matching based on your profile, uploaded projects, CV/Resume and Achievements
- Resume and profile optimization using our career map
- Connection to PR-friendly work that counts toward your immigration
- One-on-one consultation with immigrant-focused career coaches
- Career circles to help you network with people walking your same path
Unlike generic job platforms, Anutio is built for you—an immigrant trying to live, work, and thrive in a new land.
When Freelancing Might Work—But Only If…
So should you abandon freelancing entirely? Not necessarily. But it must be done right.
Freelancing could work if:
- You have an open work permit or are a PR holder
- You’ve registered with the CRA as self-employed
- You’re tracking income properly and filing taxes annually
- You’re supplementing freelance gigs with proof of work experience
- You’re diversifying clients—especially local Canadian ones
Use verified Canadian platforms like:
Even better? Blend this with Anutio’s curated job pool to cover your bases.
CONCLUSION
Freelancing is a powerful tool—but like any tool, it can hurt if used the wrong way.
As an immigrant, your path is already paved with courage. You don’t need to gamble your future on guesswork. Know the rules, build smartly, and use resources like Anutio that are designed with your journey in mind.
You deserve a work life that sustains you legally, financially, and emotionally.
