You’ve just landed in Canada. Maybe your work permit is freshly approved, you’re adjusting to a new job, and like many newcomers, your brain is already buzzing: “Can I freelance on the side to make extra money?”
It sounds perfect—flexible hours, global clients, and a chance to keep that side gig you started back home. But here’s the catch: Canadian immigration and tax laws aren’t always freelancer-friendly. What looks like a harmless gig on Upwork could actually cost you your status, PR eligibility, or even spark a CRA audit.
This article is your reality check, without the scare tactics. We’ll explore when freelancing actually works as a side hustle in Canada, when it doesn’t, and how you can navigate this space legally and safely.
👉 This article is part of our “Freelancing in Canada vs. Nigeria: Key Differences, Opportunities, and What You Should Know Before You Start” series.
Understanding the Canadian Freelance Landscape
Let’s clarify the basics. In Canada, freelancing means offering services independently without a traditional employer—often as a sole proprietor. This could be anything from graphic design and tutoring to consulting, digital art, or coding.
Some of the most popular platforms used by freelancers in Canada include:
- Upwork
- Fiverr
- Freelancer.ca
- Toptal
- Anutio – a platform helping skilled immigrants connect with vetted clients across Canada.
So, what’s the difference between freelancing as a side hustle vs. being self-employed full-time?
- Side hustle: You have a main job or permit-compliant activity, and you freelance occasionally (evenings, weekends).
- Self-employed: Freelancing is your main source of income and you operate it like a business.
Canadian immigration and tax bodies treat these scenarios differently. That’s why knowing where you fall matters.
Helpful Resource: Learn about what counts as work in Canada from the IRCC official website
Work Permits and Legal Considerations (300 words)
Your work permit is the most critical piece in determining whether freelancing is legal for you in Canada. Let’s break down the most common types:
Post-Graduation Work Permit (PGWP)
- Allows freelancing.
- PGWP holders can work for any employer—or be self-employed.
- Ideal for those wanting to freelance part-time after school.
Open Work Permit (OWP)
- Allows freelancing.
- This includes spousal open work permits, refugee claimants, and others.
- You can take clients or contracts without restrictions.
Employer-Specific Work Permit (Closed Work Permit)
- Does not allow freelancing.
- You are legally tied to one employer.
- Freelancing counts as unauthorized work and could lead to permit violations.
Study Permit (with off-campus work eligibility)
- Highly restricted.
- You can only work up to 20 hours/week (starting Fall 2024, this cap will be reinstated).
- Freelancing may or may not be considered legal work depending on your setup. Always consult with IRCC or a regulated immigration consultant.
Official Guidelines:
Caution: Freelancing under the wrong permit—even just once—could result in loss of status, denied PR, or deportation. Always double-check with your immigration advisor before starting.
When Freelancing Works for Immigrants in Canada
Now let’s talk about the good news: freelancing can work for you in Canada—when you meet the right conditions.
You can freelance if:
- You have an Open Work Permit or a PGWP.
- Your full-time job leaves room for part-time freelance gigs.
- You already had international clients before moving.
- Your side hustle doesn’t conflict with your main job.
- You operate transparently through legal platforms like Upwork or Anutio and pay your taxes.
Tip: If your work permit allows it, consider using Anutio to find legit freelance jobs tailored for immigrants.
When Freelancing Doesn’t Work
Freelancing can be risky when done without understanding the limitations of your permit or tax obligations.
You should not freelance if:
- You hold an Employer-Specific Work Permit and your job doesn’t involve freelance flexibility.
- You’re taking cash gigs (Uber, hairdressing, tutoring) without declaring them.
- Your freelance work competes directly with your employer (conflict of interest).
- You haven’t registered your business or filed taxes (CRA could see this as tax evasion).
Reference:
CRA – Self-employed business income
Freelancing vs. Other Side Hustles
When looking to earn extra income in Canada, many immigrants consider three main paths: freelancing, retail/part-time jobs, or gig economy apps like Uber or DoorDash. Each has its perks and pitfalls.
Here’s a quick comparison:
| Criteria | Freelancing | Retail/Part-time Job | Gig Economy (Uber, DoorDash) |
|---|---|---|---|
| Flexibility | High – set your own schedule | Low – fixed shifts | Medium – depends on platform |
| Income Potential | High – skill-based pricing | Medium – hourly wage | Medium – depends on demand |
| Legal Barriers | Permit-dependent | Easier with valid work permit | May violate permit if self-employed |
| Startup Effort | High – setup, portfolio, clients | Low – apply and start | Medium – register, background check |
| Paperwork | High – invoicing, taxes | Employer handles taxes | Platform issues T4A or equivalents |
Freelancing allows you to monetize high-value skills, grow a personal brand, and even build a future business. However, it also demands more structure: you’ll need to manage invoices, track income, and pay taxes.
Tools like Wave, QuickBooks, or FreshBooks can help you stay financially organized from day one.
Is Freelancing Right for You—Right Now?
Freelancing can be a smart side hustle—if your permit allows it, your main job offers flexibility, and you’re financially organized. It’s ideal for skilled immigrants looking to build long-term income streams and professional autonomy.
But it’s not one-size-fits-all. If you’re unsure about your legal standing, consult an immigration lawyer or the IRCC before you start. It’s better to pause than to risk your future in Canada.
Whatever you decide, let long-term goals—not desperation—guide your hustle. And if you’re ready to grow a legal, profitable freelance side gig, platforms like Anutio can help you do it right.
