How Europeans Can Get Work Permits to Canada under CETA
If your company is based in the European Union, CETA (the Canada–EU Comprehensive Economic and Trade Agreement) gives you something most foreign businesses don’t get: a way to move key people to Canada without first proving that no Canadian could do the job.
CETA has been provisionally in force since September 21, 2017. It removed tariffs on almost all goods, opened Canadian government contracts to EU businesses, and created work permit categories that skip the Labour Market Impact Assessment (LMIA), the slow and costly labour-market test most employers face. The results are measurable: EU–Canada trade in goods and services grew by 71% between 2016 and 2023, and about 20% more EU small and mid-sized companies now export to Canada, according to the European Commission’s 2025 evaluation of the agreement.
This guide covers what CETA delivers, which of your people qualify, the steps in the right order, what it costs, and how to plan permanent residence from day one.
Key Takeaways
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No LMIA for your key people
CETA lets EU companies transfer executives, managers, specialists and graduate trainees to Canada without labour market testing or the CAD $1,000 LMIA fee.
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Three intra-company transfer sub-categories
Senior personnel and specialists get up to 3 years, plus one extension of up to 18 months. Graduate trainees get 1 year, with no extension.
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One year with your EU company first
The employee must have worked full-time for your EU company (or a related entity) for at least one year in the last three years.
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Spouses can work too
Spouses and common-law partners of CETA transferees may qualify for an open work permit (code T45) for any Canadian employer.
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Set up the Canadian entity first
Your Canadian company must be registered before it can submit the job offer that every intra-company transfer application needs.
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Plan permanent residence from day one
One year of skilled Canadian work experience can qualify your people for Express Entry through the Canadian Experience Class.
Note
This guide reflects Canadian immigration policy and CETA program rules current as of October 2026. Canadian immigration rules change often, so book a consultation before you file if your application is imminent.
What Does CETA Actually Deliver for Your EU Business?
CETA is a trade and investment agreement between Canada and all 27 EU member states. It covers goods, services, investment, intellectual property, government procurement and, in Chapter 10, the temporary entry of business people. Here is what each part means for your company.
Tariffs and market access
Key point
99% of tariff lines between Canada and the EU are now duty-free. Canada made its final scheduled tariff cut on January 1, 2024.
Worth knowing
Some dairy and poultry products are still limited by tariff-rate quotas. Check your product codes in the Canada Tariff Finder.
Business visitors
Key point
Your EU staff can come to Canada for meetings, market research, training and after-sales service without a work permit.
Worth knowing
They must stay on your EU payroll and must not enter the Canadian labour market. Most EU nationals need only an eTA.
Professional qualifications
Key point
CETA sets up a framework to recognize EU professional qualifications, one profession at a time. The first Mutual Recognition Agreement, for architects, entered into force on December 18, 2025.
Worth knowing
No MRA is in force yet for engineers, accountants or lawyers. Any regulated professional still needs a licence from the provincial regulator.
Government contracts
Key point
EU businesses can bid on federal, provincial and municipal contracts covered by CETA, including many that were once limited to domestic suppliers.
Worth knowing
A registered Canadian entity and a local team make your bids far more competitive, especially in construction, engineering, IT and health care.
Services and investment
Key point
CETA opens Canadian services sectors, including finance, telecommunications and transportation, and commits Canada to non-discriminatory treatment when you set up or expand here.
Worth knowing
The investment protection and investment court chapter is not yet in force. It applies only after every EU member state ratifies CETA.
Intellectual property
Key point
Stronger trademark rules, extra patent protection for pharmaceuticals, and protection for listed European geographical indications.
Worth knowing
If your product name is a European geographical indication, check whether it is on the CETA list before you launch in Canada.
A base for North America
Key point
Canada has 15 free trade agreements covering 51 countries, including CUSMA (United States and Mexico) and the CPTPP. A Canadian company can tap into all of them.
Worth knowing
Each agreement has its own rules of origin. Your goods must meet them to qualify for lower tariffs, so get trade advice before you plan around a third market.
What Can Your EU Staff Do in Canada Without a Work Permit?
Under CETA’s business visitor rules, your employees can enter Canada without a work permit to:
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Meet clients, partners and potential customers
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Do market research and due diligence
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Train your Canadian team, or receive training from Canadian partners
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Provide after-sales service
Installation, maintenance or repair under a sales contract for goods.
The key condition: your employees must be paid by your EU company, not a Canadian source, and must not be entering the Canadian labour market. Most EU nationals travel to Canada visa-free with an Electronic Travel Authorization (eTA).
Helpful Tip
Carry documentation even for business visitor trips — a letter from your EU company describing the purpose and duration of the visit, meeting invitations, and business cards. Border officers can request this, and being prepared avoids delays.
Why Do EU Companies Need People on the Ground in Canada to Get the Most from CETA?
CETA’s tariff and procurement benefits are mostly export advantages. You can ship goods tariff-free or bid on a contract without anyone on the ground. But to win market share, build local relationships and grow, you need your people in Canada. That is where CETA’s immigration rules become the most valuable part of the agreement.
Without CETA, moving staff to Canada usually means an LMIA: advertising the role, proving no qualified Canadian was available, paying a CAD $1,000 government fee per position, and waiting months for a decision. CETA removes that test for EU nationals who fit its temporary-entry categories. The result is faster entry, lower cost and less paperwork.
In our experience, the EU companies that get the most from CETA treat immigration as a strategic tool, not a compliance exercise. They move their strongest people early and plan permanent residence from the start, so their team stays rather than just visits.
Which CETA Work Permit Categories Can Your Company Use?
Every CETA work permit category is LMIA-exempt and processed under Canada’s International Mobility Program (IMP). In most cases, your Canadian employer still submits an offer of employment through the IRCC Employer Portal and pays the CAD $230 employer compliance fee.
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Intra-company transferees
Executives, managers, specialists and graduate trainees moving from your EU company to a related Canadian company. The category most EU companies use.
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Investors
People who establish, develop or manage an investment in Canada to which they or your EU company has committed, or is about to commit, substantial capital.
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Contractual service suppliers and independent professionals
Your employees, or self-employed EU professionals, delivering a service contract for a Canadian client in a covered sector. Stays are limited to 12 months in any 24-month period.
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Engineering and scientific technologists
Technologists who supply a service under contract with a Canadian client. As with contractual service suppliers, stays are limited to 12 months in any 24-month period.
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Business visitors
Short trips for meetings, research, training and after-sales service. No work permit needed.
The Intra-Company Transfer: The Workhorse Category
The intra-company transfer (ICT) lets you move people from your EU company to a Canadian parent, subsidiary, branch or affiliate. The employee must have worked full-time for your EU company for at least one year in the last three years. There are three sub-categories:
Senior personnel
Who qualifies
Executives and managers who direct your company or a major part of it, with wide authority over decisions.
Permit length
Up to 3 years at first, plus one extension of up to 18 months.
Specialists
Who qualifies
Employees with uncommon knowledge essential to your products, services, processes or management, plus a high level of qualification or experience.
Permit length
Up to 3 years at first, plus one extension of up to 18 months.
Graduate trainees
Who qualifies
University graduates transferred for career development or training in your business methods or techniques.
Permit length
Up to 1 year. No extension is allowed.
A benefit many companies overlook: spouses and common-law partners of CETA intra-company transferees may get an open work permit (code T45), valid for the same period as the transferee’s permit. They can work for any Canadian employer, not just yours.
Helpful Tip
The corporate relationship between your EU and Canadian entities must be documented clearly — organizational charts, share registers, articles of incorporation. Applications that are light on this documentation are the ones that run into information requests and delays.
The Strategic Case for a Physical Presence in Canada
Beyond the immigration benefits, having your people on the ground in Canada creates advantages that remote operations cannot replicate:
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Access to government contracts and grants
Many Canadian federal and provincial programs require a registered Canadian business and an active local presence before you can apply.
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Local talent
Canada’s universities produce world-class graduates. A physical office gives your company access to that talent pool in ways that a remote operation cannot.
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Client relationships
Canadian buyers, particularly in government and enterprise, strongly prefer working with locally-present suppliers.
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US market access
A Canadian base — especially in Ontario or British Columbia — gives your business a North American footprint that can support expansion into the US market.
Strategic Steps for EU Companies Expanding to Canada
A successful Canadian expansion involves several work streams running in parallel. Your immigration planning and business registration need to happen together — not sequentially. Here is how the pieces fit.
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1
Choose your entry structure
Subsidiary, branch or acquisition.
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2
Register your Canadian business
Incorporate, register provincially and get a CRA business number.
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3
Match each person to a category
Senior personnel, specialist or graduate trainee.
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4
File the work permits
Employer Portal offer first, then each application.
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5
Plan permanent residence
Express Entry or a Provincial Nominee Program.
Step 1: Choose Your Entry Structure
The right structure depends on your business model, your timeline, and how much operational control you want from day one. Your three main options:
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Establish a subsidiary
A Canadian corporation wholly owned by your EU parent. The most common structure for companies making a long-term commitment. Provides liability separation and the cleanest corporate relationship for intra-company transfer applications.
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Register a branch
A registered presence of your EU entity in Canada. Simpler to set up but exposes your EU parent to Canadian legal liability. Works for smaller or more exploratory operations.
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Acquire an existing business
Buying a Canadian company with existing operations, customers, and staff. Faster market entry but requires due diligence and often a different immigration pathway.
Step 2: Register Your Business in Canada
You can incorporate federally through Corporations Canada or provincially, for example through the Ontario Business Registry. A federal corporation must also register in each province where it operates. You will need a Canadian address. A virtual office works for registration, but if you are transferring someone to open a new office, IRCC will look for evidence of a real physical presence.
Helpful Tip
Your Canadian business registration must be complete before your entity can submit an offer of employment through the IRCC Employer Portal. Get this done before — not alongside — your first work permit application.
What Does Registering a Business in Canada Actually Involve?
The process involves three steps:
A corporation is the most common choice for EU companies making a long-term commitment. It separates liability and gives you the cleanest corporate relationship for intra-company transfer applications. If you incorporate federally, at least 25% of your directors must be resident Canadians; Ontario and British Columbia corporations have no director residency requirement.
Incorporate federally through Corporations Canada or in your chosen province, then register in every other province where you will do business. Once registered, get a Business Number from the Canada Revenue Agency for corporate tax, GST/HST, payroll and import accounts.
Specific to your industry and province. Requirements vary significantly — from municipal business licenses to federal sector-specific permits in regulated industries such as financial services, healthcare, and telecommunications.
Regulatory requirements change frequently. Build in a process for monitoring updates relevant to your sector, or retain local counsel to keep you current.
Step 3: Identify Who You Are Moving
Not every employee qualifies under the same CETA sub-category. Map your key people to the right one before filing anything:
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Executives and managers → Senior personnel
People who direct the company or a major function. Up to 3 years, plus one extension of up to 18 months.
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Product and technical specialists → Specialists
People with uncommon, essential knowledge of your products, services, systems or processes. Up to 3 years, plus one extension of up to 18 months.
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Recent university graduates → Graduate trainees
Graduates moved to Canada for career development or training. 1 year maximum, no extension.
Moving yourself? If you or a co-founder will run the Canadian business, you can also transfer as senior personnel, as long as you meet the one-year employment requirement. Owners committing substantial capital may fit the CETA investor category instead.
Step 4: File the Work Permit Applications
Your Canadian entity must first submit the offer of employment through the IRCC Employer Portal and pay the CAD $230 employer compliance fee. The employee then applies, usually online. A CETA work permit skips the months-long LMIA stage entirely, but IRCC processing times still vary by the employee’s country of residence. Check the current estimate on the IRCC processing times page before you set a start date.
Helpful Tip
Visa-exempt EU nationals may also apply at a Canadian port of entry for the intra-company transfer, though applying online in advance is lower-risk and gives you a clear approval before your employee travels.
Step 5: Plan the Path to Permanent Residence
CETA work permits are temporary. If your goal is to keep your team in Canada long-term, plan the permanent residence pathway from the moment the work permit is approved. One year of skilled Canadian work experience (NOC TEER 0, 1, 2, or 3) qualifies for the Canadian Experience Class under Express Entry. Provincial Nominee Programs also prioritize workers already employed in the province — and a provincial nomination adds 600 points to an Express Entry profile, which in practice almost always leads to an invitation to apply for permanent residence.
Helpful Tip
Think of the CETA work permit as the first chapter, not the whole story. The companies that retain their Canadian teams are the ones that started planning permanent residence alongside the initial work permit application.
A Note on Taxation and Financial Setup
Canada taxes corporations at both the federal and provincial level. In Ontario, the combined general corporate rate is 26.5%. Lower small-business rates apply only to Canadian-controlled private corporations, which foreign-owned subsidiaries usually are not. How profits leave Canada depends on your structure: a subsidiary pays withholding tax on dividends sent to its EU parent, usually reduced under the tax treaty, while a branch pays an additional branch tax on profits not reinvested in Canada.
Federal and provincial incentives are available, including Scientific Research and Experimental Development (SR&ED) tax credits for R&D work and sector grants such as the Strategic Innovation Fund. Note that foreign-owned companies generally get the basic, non-refundable SR&ED credit rather than the enhanced refundable rate available to Canadian-controlled companies.
Tax structuring for a new Canadian operation requires specialist advice before you incorporate — the interaction between your home country’s tax treaty with Canada and Canadian domestic rules is not straightforward. We can connect you with Canadian tax counsel as part of the expansion planning process.
CETA Intra-Company Transfer vs. Standard LMIA Work Permit: A Comparison
For EU companies evaluating the cost and timeline of a Canadian expansion, the table below illustrates the practical advantage of the CETA-exempt pathway over the standard LMIA-based route.
| Feature | CETA Intra-Company Transfer (IMP) | Standard LMIA Route (TFWP) |
|---|---|---|
| Labour Market Test? | No | Yes — your Canadian entity must advertise the role and demonstrate no Canadians were available |
| Government Fee (Employer) | CAD $230 employer compliance fee | CAD $1,000 LMIA fee per position |
| Typical Processing Time | No LMIA stage. Work permit processing only, which varies by country | LMIA processing (often several months), then work permit processing |
| Spouse Work Permit? | Open work permit for spouses of transferees (T45) | Only for spouses of workers in TEER 0 or 1 jobs, or select TEER 2 and 3 jobs |
| Graduate Trainee Category? | Yes, unique to CETA (1 year) | No dedicated trainee category |
| Max Duration (Senior/Specialist) | Up to 3 years, plus one extension of up to 18 months | Tied to the LMIA; a new LMIA is usually needed to extend |
| Applies To | EU citizens (all 27 member states) | Any nationality — no trade agreement required |
What Does a CETA-Based Canadian Expansion Cost for EU Companies?
Understanding the full cost picture before you start saves surprises later. The costs involved in a CETA-based Canadian expansion fall into four categories: legal fees, investment requirements, company registration, and government fees.
| Cost Item | Regular Transfer — to existing Canadian entity | New Office Expansion — Establishing a new Canadian entity |
|---|---|---|
| Legal fees (per application) | CAD $10,000–$15,000 | CAD $10,000–$15,000 |
| Investment required | Sufficient funds to compensate the employee at or above median wage | No set minimum — based on operational costs; typically CAD $200,000–$300,000 for year one |
| Company registration | Not required if Canadian entity already exists | Approximately CAD $3,000 |
| Government fees | From CAD $470, depending on family size | From CAD $470, depending on family size |
A Note on the Investment Requirement for New Office Transfers
The CETA intra-company transfer has two distinct scenarios, and the cost picture differs significantly between them. If you are transferring a senior executive or manager to an already-operating Canadian entity — one with existing staff, revenue, and premises — you simply need to demonstrate that the employee will receive compensation that meets or exceeds the median wage for their position. No minimum capital investment is required.
If you are transferring a senior manager or executive to establish a new Canadian operation, IRCC expects to see evidence that the business is viable and that sufficient capital has been committed to operationalize it. There is no published minimum investment figure under CETA. In our experience, demonstrating approximately CAD $200,000 to $300,000 in available funds for the first year of operations is a reasonable planning benchmark for a small to mid-sized operation — this is not a regulatory minimum, and the actual amount will depend on your business type, industry, and location. What matters to the IRCC officer is that the capital is credible relative to your business plan.
Helpful Tip
The investment figure for a new office transfer is not a fixed regulatory threshold — it is an officer’s assessment of whether the business is credibly capitalized. A detailed business plan, lease or premises commitment, and evidence of operating funds carry as much weight as the dollar amount. We can help you structure this documentation before filing.
How Sobirovs Law Firm Helps EU Companies Enter Canada
We focus exclusively on Canadian business immigration. We have helped EU businesses across a range of industries establish Canadian operations — from technology companies transferring their founding teams to manufacturers moving senior leadership. Here is what we help with:
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Identifying the right CETA category
Matching your people and your business structure to the correct work permit category before you invest time in an application.
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Corporate structure advice
Establishing or documenting the qualifying relationship between your EU entity and your Canadian operations for intra-company transfer applications.
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Work permit preparation and filing
Building a complete, well-documented application that minimizes the risk of information requests or refusals.
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Spouse and family permits
Coordinating open work permits for spouses of your intra-company transferees and exploring options for other family members.
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Permanent residence planning
Mapping the route from your team’s CETA work permits to Express Entry or a Provincial Nominee Program from day one.
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Ongoing compliance and renewals
Tracking permit expiry dates, managing extensions, and keeping your team’s status current as your Canadian operations grow.
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Mergers, acquisitions, and partnerships
Through our professional network, we coordinate due diligence, contract review, and negotiation support for EU companies acquiring or partnering with Canadian businesses as part of their market entry.
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Sector-specific regulatory compliance
We help businesses in regulated industries navigate licensing, permits, and ongoing compliance requirements as Canadian operations scale.
Frequently Asked Questions
Not all — but close. When CETA came into force in 2017, 98% of tariff lines were eliminated immediately. Canada completed its final tariff cut on January 1, 2024, bringing that to 99% of all tariff lines. A small number of agricultural product categories — primarily dairy and some poultry products — remain subject to tariff rate quotas rather than full elimination. Use the Canada Tariff Finder to check the current rate for your specific product.
All 27 current EU member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. If your employees hold UK nationality, they are not covered — they access Canada under the Canada-UK Trade Continuity Agreement (CUKTCA), which came into force on April 1, 2021.
No. CETA intra-company transfers are LMIA-exempt under Canada’s International Mobility Program. There is no labour market test, no advertising requirement and no CAD $1,000 LMIA fee. Your Canadian entity still submits an offer of employment through the IRCC Employer Portal and pays the CAD $230 employer compliance fee. This applies to all three sub-categories: senior personnel, specialists and graduate trainees.
Not directly through CETA — the agreement facilitates temporary entry only. But one year of skilled work experience in Canada on a CETA work permit qualifies your team members for the Canadian Experience Class under Express Entry. Provincial Nominee Programs also prioritize workers already operating in their province. For EU business owners specifically, the PNP entrepreneur streams in several provinces offer a pathway from active business operations to permanent residence.
Often, yes. If you have worked for your EU company for at least one year in the last three years and will direct the Canadian business, you may qualify as senior personnel under the intra-company transfer category. If you are committing substantial capital to a Canadian investment, the CETA investor category may fit better. Owners of small or newly formed companies face closer scrutiny, so the strength of your business plan and funding matters.
It depends on the sub-category. Senior personnel and specialists can receive an initial permit of up to 3 years, plus one extension of up to 18 months, for a maximum of 4.5 years. Graduate trainees receive up to 1 year, with no extension. Apply for an extension before the current permit expires. If you want your employee to stay longer, plan the permanent residence application well before the 4.5-year limit.
Because there is no LMIA stage, a CETA work permit is usually much faster than an LMIA-based permit. The actual time depends on IRCC processing for the employee’s country of residence and on how complete the application is. Check the current estimate on the IRCC processing times page, and allow extra time to register your Canadian entity and submit the Employer Portal offer first.
