A growing number of Americans living in Canada are renouncing their US citizen, citing financial and political intentions, as per a review by CBC News.
Since Donald Trump was reelected as the US senator in November, there has been a substantial increase in inquiries, according to lawyers who specialize in expatriation. Experts say 2025 will be a record year for emigration.
The trend of US citizens severing ties to their homeland has been growing since 2014, when the Foreign Account Tax Compliance Act ( FATCA ) became lawful in full force, according to CBC News. International financial institutions are required by FATCA to survey on US account holders ‘ foreign assets, which complicates US citizens ‘ tax filing obligations abroad.
Alexander Marino, chairman of US duty laws at Moodys Tax Law in Calgary, stated that property taxes and income compliance obligations are the main causes of rejection. However, social factors play a growing position. ” For a lot of folks, the election results are a bit of the straw that broke the camel’s back”, Marino was quoted by CBC News, adding that involvement in rejection spiked quickly after Trump’s election.
One high-profile case is Douglas Cowgill, a former double member from Wisconsin, today based in British Columbia. As reported by CBC News, Cowgill actually renounced his US citizen in 2023, citing long-term economic and personal desires.
” I had to look at it from the standpoint of what lies ahead of me for the following 20 to 30 times,” Cowgill said.” Undoubtedly that is a life around in Canada,” she said. He immigrated to Canada in 2012, became a multi resident in 2019, and made the decision to abandon when cross-border sessions with his American woman became challenging.
Cowgill furthermore noted that some emigrants abandon because of political discontent. ” They see the US going in a way that they’re not happy with”, he added.
Rejection is not a simple process. Applicants must have immigration files, tax compliance entries, and a formal exam at a US embassy or consulate, where they take an oath of rejection. The decision is made even more complicated by the$ 2,350 administrative charge and potential return taxes.
Doctors like Cowgill and Marino have experienced a surge in business. According to CBC News, Cowgill’s company, Cross Border Visas, reported a near-doubling of regular complaints by later 2023. Also, Moodys Tax Law plans to increase its rejection workshops from seven to 12 in 2025 to satisfy growing demand.
Expected increase in emigration numbers
Names of those who renounce their citizenship are published weekly by the US Federal Register. Statistics surged after Trump’s primary election in 2016, rising from about 4, 100 titles in that year to about 6, 900 in 2017—a more than 50 per cent raise.
While emigration dipped to 5, 500 people in 2022, Marino expects 2025 to exceed previous information. This rise is attributed to social polarization and economic strains, especially among left-leaning Canadian expats from the US, according to CBC News.
