A Growing Wave of Renunciations
For many dual citizens living in Ottawa and across Canada, the question of whether to keep their U.S. citizenship has become impossible to ignore. Every year, thousands of people living abroad formally renounce their American citizenship — and the numbers have been climbing steadily in recent years.
While the reasons are deeply personal, two factors keep coming up again and again: Donald Trump and taxes.
The Trump Factor
For some dual citizens, the political direction of the United States under Trump has been a tipping point. What was once an abstract discomfort has sharpened into a concrete decision. Many describe a growing sense of disconnection from American values and institutions — and a desire to fully commit to their life in Canada.
For Ottawa residents with ties to the U.S., the daily rhythm of Canadian life — universal healthcare, a different political culture, proximity to government and public service — can make the contrast feel especially stark. The capital's identity is bound up in a particular vision of civic life, and for some, holding onto a U.S. passport has started to feel out of step with who they are.
But advocates and legal experts are quick to point out that Trump alone doesn't explain the trend. The decision to renounce is almost always driven by a combination of factors, and for many, the financial burden of U.S. citizenship is equally — if not more — significant.
The Tax Burden Most Canadians Don't Know About
The United States is one of only two countries in the world (the other being Eritrea) that taxes its citizens on their worldwide income, regardless of where they live. That means a dual citizen living in Ottawa, working a regular Canadian job, and paying Canadian taxes is still legally required to file U.S. tax returns every year.
The compliance costs alone can run into the thousands of dollars annually — accountants who specialize in cross-border tax situations don't come cheap. And the penalties for non-compliance can be severe, even for people who had no idea they were obligated to file.
For dual citizens with Canadian retirement accounts, small businesses, or investments, the complications multiply. Certain registered Canadian accounts don't receive the same tax treatment under U.S. rules, creating headaches that can take years — and significant legal fees — to untangle.
Renouncing Isn't Simple Either
Walking away from U.S. citizenship isn't a casual decision. The process involves an in-person appointment at a U.S. consulate, a formal oath of renunciation, and — for higher earners — potentially a significant exit tax. There are also emotional dimensions: many people describe a sense of loss, even when they feel certain the decision is right.
Wait times at U.S. consulates for renunciation appointments have stretched into months or even years in some cities, a sign of just how many people are pursuing this path.
What It Means for Ottawa's Dual Citizens
Ottawa's proximity to the U.S. border, its large population of government workers, academics, and internationally mobile professionals means there are likely thousands of dual citizens in the city quietly navigating this question. Community Facebook groups and Reddit threads dedicated to the topic are active and growing.
For those considering renunciation, legal and financial advisors strongly recommend getting professional guidance before making any moves — the decision is irreversible, and the financial implications can be significant depending on individual circumstances.
Source: CBC Ottawa via RSS. Original reporting by CBC News.
