Published on
January 17, 2026
Switzerland joins Germany, Sweden, Italy, Portugal, Iceland, France, and over thirty other countries in Europe, now faces significant travel barriers as Canada freezes its Start-Up Visa applications. This bold move, effective January 1, 2026, marks a dramatic shift in Canada’s immigration policies, halting a key pathway for entrepreneurs hoping to establish their businesses in the country. As Canada redefines its approach to attracting global talent, citizens from these European nations find their aspirations of entering Canada’s thriving start-up ecosystem suddenly uncertain. With a growing emphasis on a more selective and targeted pilot program, many entrepreneurs are now forced to explore alternative routes or wait for new pathways to be unveiled. This policy change has sent shockwaves through the international business community, as aspiring innovators are left grappling with the uncertainty of how these new regulations will impact their future plans and prospects in Canada.
Canada, a beacon for aspiring entrepreneurs and skilled professionals, has launched a new wave of regulatory changes, leaving a profound impact on prospective immigrants from across the globe. Effective from January 1, 2026, Canada has suspended its Start-Up Visa (SUV) Program, marking a pivotal moment in the nation’s immigration policy. This shift, designed to revamp immigration pathways, has caused major ripple effects, especially for Europe. Countries like Switzerland, Germany, Sweden, Italy, Portugal, Iceland, France, and over 30 more nations now find their citizens grappling with these unexpected travel restrictions.
The immediate impact is evident, as the program had long been a cornerstone for entrepreneurs seeking to establish their innovative businesses in Canada. With these new changes, many entrepreneurs are now left uncertain about their future plans. As Canada moves to implement new pilot programs in 2026, the suspension of the Start-Up Visa signals not just a policy shift, but a monumental change for aspiring business owners, skilled professionals, and students worldwide.
A Stark Shift: Why Canada Paused the Start-Up Visa Program
The Start-Up Visa was introduced to provide a pathway for foreign entrepreneurs to establish businesses in Canada. It offered a unique opportunity for global innovators to receive permanent residence in exchange for growing new ventures that contributed to the Canadian economy. However, effective January 1, 2026, Canada has placed a halt on accepting new applications for the Start-Up Visa Program, leaving entrepreneurs with few options.
Canada’s Immigration, Refugees, and Citizenship Canada (IRCC) has stated that this pause is not a permanent decision but a strategic shift. The aim is to transition to a new, more selective entrepreneur pilot program that will be launched later in 2026. In the interim, individuals who have already secured a commitment certificate from a designated organization in 2025 will still be eligible to apply until June 30, 2026. However, new applicants without such certificates will face a difficult wait until the new program is operational.
For many entrepreneurs, this suspension is a significant blow. The Start-Up Visa had provided not just immigration opportunities but also access to Canada’s vibrant start-up ecosystem, a key attraction for business owners around the world. The immediate cessation of new applications forces entrepreneurs to rethink their immigration strategies, with some considering alternative provincial streams or other business-related immigration routes.
The Fallout: How European Countries Are Affected
The suspension of Canada’s Start-Up Visa is most acutely felt in European nations, where a burgeoning entrepreneurial spirit has led many citizens to explore opportunities in Canada. The pause has sent shockwaves through a network of countries that had been major contributors to Canada’s Start-Up Visa pool. Among the hardest hit are:
- Austria
- Belgium
- Bulgaria
- Croatia
- Cyprus
- Czechia
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Hungary
- Iceland
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Malta
- Netherlands
- Poland
- Portugal
- Romania
- Slovakia
- Slovenia
- Spain
- Sweden
- Switzerland
Each of these countries has seen a rise in the number of entrepreneurs seeking to immigrate to Canada, driven by the allure of its supportive business environment and welcoming immigration policies. Now, with the suspension of the Start-Up Visa, citizens from these nations are left scrambling for alternatives. As the program remains closed to new applicants, these individuals may have to explore provincial entrepreneur streams, find new pathways through temporary work permits, or await the details of Canada’s forthcoming pilot program.
For countries like Switzerland and Germany, known for their strong start-up cultures, the suspension is particularly difficult. Entrepreneurs who had hoped to capitalize on Canada’s business-friendly immigration policies are now forced to reconsider their options, possibly delaying or even abandoning plans to establish themselves in Canada.
A Silver Lining for Graduate Students: Eased Entry for Aspiring Scholars
While the suspension of the Start-Up Visa casts a shadow over entrepreneurs, Canadian immigration policies have introduced positive reforms for graduate students. Beginning January 1, 2026, Canada has removed the requirement for master’s and PhD students to submit a Provincial or Territorial Attestation Letter (PAL/TAL) when applying for a study permit.
This change is a welcome development, particularly for international students from countries like India, where postgraduate aspirants have long struggled with additional paperwork and upfront deposit costs. By removing the attestation requirement, Canada is making it easier for students to gain entry to its prestigious academic institutions, without the burden of unnecessary delays.
This new policy will streamline the application process for students enrolled in master’s and doctoral programs at public designated learning institutions (DLIs), helping them navigate through the immigration system with greater ease. For international students, this could translate into faster processing times and fewer barriers, allowing them to begin their studies without waiting for administrative approvals that could delay their entry.
The shift is likely to be a significant draw for Indian students, many of whom seek to study in Canada’s top universities and research institutions. By easing the application process, Canada has reinforced its position as a leading destination for international education, while simultaneously boosting its academic and research sectors.
Ban on ‘Canadian Work Experience’ in Job Postings: A New Era for Skilled Workers
In addition to the changes affecting entrepreneurs and students, Canada has introduced another groundbreaking policy that will alter the landscape for skilled workers. From January 1, 2026, employers in Ontario are now prohibited from requiring “Canadian work experience” as a mandatory condition for job applicants.
This change, under the Employment Standards Act, aims to level the playing field for skilled workers who may not have local experience but possess valuable qualifications and international work experience. The new rule will help skilled professionals who have worked abroad but are now seeking opportunities in Canada, allowing them to apply for jobs based on their skills and expertise rather than their history in the Canadian labor market.
This shift is particularly important for immigrants from countries like India, where professionals often face the barrier of not having Canadian work experience, despite being highly qualified. The new policy reflects a broader effort to promote workforce mobility and inclusivity, ensuring that all qualified workers, regardless of their origin, can contribute to Canada’s thriving economy.
Employers are also now required to disclose if artificial intelligence tools are used in their hiring processes, ensuring that applicants are aware of how their applications will be assessed. This added transparency is designed to give job seekers a fairer chance at securing positions based on merit, not biased systems.
A Closer Look at SUV Applicants: Tax Filings and Business Landscape
The majority of principal applicants (PAs) under Canada’s Start-Up Visa (SUV) program were between the ages of 30-49, predominantly male, married, and held a university degree. This demographic reflects the program’s focus on attracting experienced, skilled entrepreneurs. The most common countries of citizenship for these applicants were India, China, Vietnam, and Iran, signaling the global appeal of Canada’s business-friendly immigration policies. In terms of employment types, the tax filings made by SUV PAs included T2, T1FD, and T4 filings, which represent various business and employment statuses.
Among these, business owners (T2 filers) had at least a 10% share in an incorporated business, often larger in size, with a longer-term business plan and a higher likelihood of hiring employees. During the data period, 300 T2 tax filings were made by SUV PAs, showing a strong inclination towards incorporated businesses. Additionally, 190 T1FD filings were made by self-employed business owners running unincorporated businesses. These applicants tended to operate on a smaller scale but still played a significant role in the Start-Up Visa landscape.
Interestingly, 270 T4 filings were made, indicating that some SUV PAs were also employed in roles unrelated to their own businesses. This diverse set of filings underscores the various paths through which applicants contribute to Canada’s economy. The program’s applicants also interacted with three types of Designated Entities (DEs)—Venture Capital Funds, Angel Investor Groups, and Business Incubators—with business incubators being the most prevalent, representing 79% of successful applicants despite being 53% of the DE population.
Looking Ahead: What’s Next for Entrepreneurs and Skilled Workers?
While the pause on the Start-Up Visa is a significant setback for entrepreneurs, it also signals a broader shift in Canada’s approach to immigration. The government’s move to a more selective, targeted pilot program for entrepreneurs could result in a higher-quality pool of applicants, but it will also likely create stricter barriers to entry.
For those still interested in pursuing business immigration to Canada, the wait for the new program may be lengthy. Entrepreneurs may need to explore provincial entrepreneur streams or other business-oriented immigration pathways to realize their Canadian dreams.
On the other hand, the changes for graduate students and skilled workers are positive steps forward. The easing of entry requirements for students and the ban on Canadian work experience as a hiring condition provide significant advantages to those seeking opportunities in Canada. These reforms ensure that Canada remains competitive as a global destination for education and talent.
The Road Ahead: Navigating the Shifting Landscape
As 2026 unfolds, Canada’s immigration system continues to evolve, with new opportunities and challenges emerging for entrepreneurs, students, and skilled workers. While the suspension of the Start-Up Visa creates uncertainty for many, the forthcoming pilot program and other immigration reforms could offer new pathways for those ready to navigate the changing landscape.
For European entrepreneurs, students, and professionals, the key to success will be staying informed, adaptable, and prepared for the changes that lie ahead. As Canada refines its immigration system, it is poised to remain a top destination for talent, innovation, and education, but only for those who are ready to take advantage of the new opportunities that will soon arise.
Switzerland joins Germany, Sweden, Italy, Portugal, Iceland, France, and over thirty other European countries, is now grappling with heightened travel barriers as Canada freezes its Start-Up Visa applications. This move, effective January 1, 2026, is part of Canada’s strategic shift to pause the program and launch a more selective pilot initiative for entrepreneurs.
While Canada’s immigration policy shifts in 2026 pose significant challenges, they also reflect a nation’s ongoing commitment to attracting the best and brightest minds to drive its future growth. Entrepreneurs, students, and skilled professionals must remain agile, exploring new avenues for success in this exciting, albeit unpredictable, new era for Canadian immigration.
