A growing number of Americans living in Canada are renouncing their US citizenship, citing financial and political motivations, as per a report by CBC News.
Lawyers specialising in expatriation have reported a significant rise in inquiries since Donald Trump was reelected US president in November, with experts predicting 2025 to be a record year for expatriation.
According to CBC News, the trend of US citizens severing ties with their homeland has been increasing since 2014, when the Foreign account tax compliance Act (FATCA) took full effect. FATCA requires foreign financial institutions to report on the foreign assets of US account holders, creating complex tax filing obligations for US citizens abroad.
Alexander Marino, director of US tax law at Moodys Tax Law in Calgary, explained that tax compliance burdens and estate taxes are the primary reasons for renunciation. However, political factors play a growing role. “For a lot of people, the election results are a bit of the straw that broke the camel’s back,” Marino was quoted by CBC News, adding that interest in renunciation spiked sharply after Trump’s reelection.
One high-profile example is Douglas Cowgill, a former dual citizen from Wisconsin, now based in British Columbia. As reported by CBC News, Cowgill officially renounced his US citizenship in 2023, citing long-term financial and personal motivations.
“I had to look at it from the perspective of what lies ahead of me for the next 20 to 30 years, and definitely that is a life here in Canada,” Cowgill said. He moved to Canada in 2012, became a dual citizen in 2019, and decided to renounce during the pandemic when cross-border visits with his Canadian wife became challenging.
Cowgill also noted that political dissatisfaction drives many expatriates to renounce. “They see the US going in a direction that they’re not satisfied with,” he added.
Renunciation is not a simple process. Applicants must undergo immigration filings, tax compliance submissions, and a formal interview at a US embassy or consulate, where they take an oath of renunciation. The $2,350 US administrative fee and potential exit taxes further complicate the decision.
Lawyers like Cowgill and Marino have seen a business boom. According to CBC News, Cowgill’s firm, Cross Border Visas, reported a near-doubling of monthly inquiries by late 2023. Similarly, Moodys Tax Law plans to increase its renunciation webinars from seven to 12 in 2025 to meet growing demand.
Expatriation numbers expected to surge
The US Federal Register publishes quarterly lists of those who renounce their citizenship. Numbers surged after Trump’s first election in 2016, rising from about 4,100 names in that year to approximately 6,900 in 2017—a more than 50 per cent increase.
While expatriation dipped to 5,500 individuals in 2022, Marino expects 2025 to surpass previous records. CBC News attributes this increase to political polarisation and financial burdens, particularly among left-leaning US expats in Canada.
