Costs of Surrogacy
Surrogacy is expensive, and intended parents need to be financially prepared before beginning the process.
For gestational surrogacy in Canada, a starting budget of $80,000 is typically recommended, but it can be lower if you already have frozen embryos.
The costs of surrogacy will vary depending on:
The location of the surrogate - Canadian, international or hybrid (as described below)
The fertility clinic and surrogacy agency
The conception process and surrogate expenses
Surrogate Locations
Canadian Surrogate
Working with a Canadian surrogate is typically the most common. This may be an independent arrangement where the surrogate and intended parents establish the relationship on their own (e.g. close friends and family), or an agency match.
Based on the Assisted Human Reproduction Act, a surrogate in Canada cannot be compensated financially, other than reimbursement of expenses directly related to the surrogacy. In general, there is a shortage of surrogates in Canada, so it may take many months for intended parents to find a match.
International Surrogate
International surrogacy involves engaging in a surrogacy arrangement outside of Canada, typically in a country where surrogacy laws may differ significantly. It has become common for Canadians to work with surrogate mothers from countries where financial compensation is legal, like the US, Ukraine or Mexico.
There is normally a larger supply of surrogate mothers in countries where commercial surrogacy is legal, which can speed up the matching process. However, intended parents need to be mindful of the additional costs (travel, accommodation, legal fees, agency costs, surrogate compensation) and legal implications of international surrogacy. The process of obtaining legal recognition and citizenship for the child born through international surrogacy can be complex and may vary depending on the laws of the countries involved.
Hybrid Surrogate
A hybrid surrogate is typically a US surrogate who will undergo an embryo transfer in Canada. This is typically a less expensive alternative to a fully American international surrogate. The surrogate is still required to qualify for all Canadian surrogacy standards.
Typical Surrogate Costs
The following summary represents the costs of a gestational surrogate in Canada (the child is not biologically related to the surrogate mother). Traditional surrogacy ( the surrogate mother uses her own egg) is not as common and currently represents less than 2% of surrogacy arrangements in Canada.
The cost summary below is without additional fees for egg donation.
| Lower Range | Upper Range | |
|---|---|---|
| IVF cycle or frozen transfer | $10,000 | $20,000 |
| Medical evaluation | $0 | $1,000 |
| Surrogate psychological evaluation and intended parent implication counselling | $800 | $1,000 |
| Surrogate mother pre-pregnancy expenses (childcare, lost wages, food, travel) | $1,500 | $3,000 |
| Surrogate mother pregancy/post-partum expenses (childcare, lost wages, food, travel, medication, clothing) | $18,000 | $25,000 |
| Additional surrogate mother expenses for C-section, multiple births and/or bedrest | $0 | $10,000 |
| Legal fees | $5,000 | $8,000 |
| 1 year life insurance policy for surrogate mother | $300 | $500 |
| Genetic testing (optional) | $0 | $2,000 |
| Consultant/agency fees | $5,000 | $20,000 |
| Canadian surrogate costs | $40,600 | $90,500 |
| Interational surrogate compensation | $30,000 | $60,000 |
| Additional legal fees | $5,000 | $20,000 |
| Travel and hotels | $5,000 | $10,000 |
| International delivery costs | $10,000 | $25,000 |
| International surrogate costs | $90,600 | $205,500 |
Tax Credits for Surrogacy Expenses
As of 2022, eligible medical expenses paid for a surrogate or a donor can be tax deductible as a Medical Expense Tax Credit (METC) for the intended parents if the expense meets all of the following criteria:
The expense is paid by the individual or their spouse or common-law partner;
The expense qualifies as a Reimbursement Related to Assisted Human Reproduction for the surrogate mother (i.e., is eligible for reimbursement, and not commercial surrogacy);
The expense would otherwise be an eligible medical expense for the METC if paid for in respect of the individual or their spouse or common-law partner;
The expense is incurred in Canada;
The expense is paid for the purpose of the individual becoming a parent.
This means that fertility-related medical costs (defined as amounts paid to a medical practitioner or a public or licensed private hospital to conceive a child) can be claimed as a tax credit for the intended parent.
