For many Americans living in Canada, U.S. citizenship feels more like a burden than a benefit. Between FATCA reporting, dual tax filing, and investment restrictions, cross-border compliance has become increasingly complex. In fact, nearly one in three U.S. expats consider giving up their citizenship. Renunciation is not a decision to take lightly, but for those with no plans to return to the United States, it can simplify finances and estate planning. At Bordera Tax and Immigration Law, our legal consultants guide clients through every step of the renunciation process. If you’re in Calgary, Vancouver, or elsewhere in Canada, contact us to discuss whether citizenship renunciation is the right choice for you.
U.S. citizens living in Canada often face unique challenges. What once felt like a dual advantage, access to two countries, now comes with complications. The Foreign Account Tax Compliance Act (FATCA) requires Canadian banks to report U.S. clients, making financial planning more difficult. At the same time, dual tax filing with both the IRS and CRA adds expense, effort, and risk of error. These compliance burdens have led many Americans in Canada to explore citizenship renunciation as a way to regain financial freedom and reduce stress. For some, the choice is straightforward, while for others, it requires careful legal and tax planning to avoid unintended consequences.
Renunciation has been steadily rising among U.S. expats in Canada. The main driver is compliance: multiple tax filings, strict reporting obligations, and penalties for mistakes create an ongoing headache. Even everyday transactions, such as selling a Canadian home, can lead to unexpected U.S. tax liability. For retirees or those who no longer maintain U.S. business ties, these challenges outweigh the benefits of keeping citizenship.
FATCA marked a turning point in cross-border taxation. By requiring banks worldwide to disclose U.S. citizen accounts, it created a “compliance on steroids” environment. Investments, retirement accounts, and savings strategies that work for Canadian citizens often create problems for Americans. FATCA has not only increased filing costs but has also limited the ability of Americans abroad to plan effectively for retirement. Many report that even simple financial transactions feel like a risk, adding stress and uncertainty to long-term planning.
Not everyone benefits from giving up U.S. citizenship. Younger professionals with cross-border careers may still find it advantageous to keep their status. For example, entrepreneurs or executives who may need U.S. access for work should think carefully before renouncing. However, older expats with no intention of returning to the United States, or high-net-worth families with complex estate plans, may find renunciation offers significant relief. Simplifying compliance, reducing reporting risks, and removing estate tax complications are common motivators. Every case is different, which is why professional advice is essential before taking this step.
Renouncing U.S. citizenship is a deeply personal decision that requires careful evaluation of your financial, family, and estate planning goals. For many Americans in Canada, the growing compliance burden makes it a practical choice, but the process itself is complex. The IRS requires proof of past compliance, and in some cases, an “exit tax” may apply. Without the right guidance, mistakes can create costly setbacks. At Bordera Tax and Immigration Law, we specialize in guiding clients through this process with clarity and confidence. Whether you are in Calgary, Vancouver, or anywhere across Canada, contact us today to explore whether U.S. citizenship renunciation is right for you.
Primarily due to FATCA, dual tax filings, and compliance costs that make financial management complex.
Yes, renouncing U.S. citizenship means you give up your passport and rights as a U.S. citizen.
Yes, but you would need to apply for a visa or entry permit like any other foreign national. Contact Bordera Taw and Immigration Law today for help with renouncing your citizenship.
Bordera Tax and Immigration Law is a premier firm with a focused approach to cross-border tax matters for individuals, corporations, partnerships, and trusts. With offices in Calgary and Edmonton, and in association with Kevin Kirkpatrick Professional Corporation, our team of US lawyers and accountants assists clients worldwide with renouncing US citizenship, securing US visas, and expanding Canadian businesses into the United States.
We specialize in voluntary disclosures, tax compliance, and resolving disputes with both US and Canadian tax authorities. Our deep experience with cross-border estates, trusts, and real estate investments allows us to optimize tax efficiency and safeguard client assets. We also provide expert guidance on Canadian departure tax planning.
Trusted by accounting firms, private wealth managers, and financial institutions, we are frequently invited to present on cross-border tax issues. Rely on Bordera Tax and Immigration Law for exceptional service and trusted cross-border expertise.
