Canadian lawyers have reported a significant rise in the number of Americans seeking to renounce their U.S. citizenship, with inquiries in December nearly doubling the usual rate. Legal experts expect this trend to intensify under President Donald Trump’s administration.
Alexander Marino, director of U.S. tax law at Moodys Tax in Calgary, told the Canadian Broadcasting Corporation (CBC) that firms specialising in North American tax law are seeing an increase in business as more Canadian-Americans explore expatriation.
While many U.S. citizens residing in Canada have historically renounced their citizenship to avoid IRS tax obligations, Marino noted that Trump’s re-election in November has accelerated the trend.
“For a lot of people, the election results are a bit of the straw that broke the camel’s back,” he said.
According to data from the U.S. Federal Register, the number of Americans giving up their citizenship began rising in 2014 following the introduction of the Foreign Account Tax Compliance Act (FATCA), which mandates foreign banks to report assets held by U.S. citizens.
The trend peaked in 2017, with a 50% increase in renunciations during Trump’s first term. However, the numbers declined under President Joe Biden, only to resurge following Trump’s return to office.
Marino also cited growing concerns over Trump’s trade policies and his past remarks about annexing Canada, which have heightened uncertainty among dual citizens.
As political and financial pressures mount, legal experts anticipate that more Americans living in Canada will explore citizenship renunciation in the months ahead.
