Renouncing U.S. Citizenship: Process, Timeline, Cost, and Immigration Consequences for Dual Canadian–American Citizens

Many Canadians with U.S. citizenship, often acquired by birth, find the tax filing obligations, FATCA reporting requirements, and cross-border compliance rules confusing and expensive so consider renouncing their American citizenship. Before taking this irreversible step, it is important to understand the process, timeline, cost, and legal consequences of renunciation, including the risk of being viewed as renouncing to avoid paying taxes under the Reed Amendment.

Understanding What Renunciation Means

Renouncing U.S. citizenship means voluntarily and formally giving up your nationality. This process must take place in person at a U.S. Embassy or Consulate outside the United States before a consular officer. You will be required to sign an oath of renunciation and confirm that you understand the decision is permanent.

Once approved, you will receive a Certificate of Loss of Nationality (CLN), the legal document that confirms you are no longer a U.S. citizen. Renunciation is generally final and irreversible, except in very rare circumstances. Afterward, you will lose the right to vote in U.S. elections, hold a U.S. passport, and live or work in the United States without a proper visa.

Timeline for Renunciation

The process can take several months to complete, depending on consular wait times and document processing.

Estimated total time: 6 months to 1 year.

Cost of Renouncing U.S. Citizenship

Renunciation is not free. The U.S. Department of State charges $2,350 USD, payable at your consular appointment.

Additional costs may include:

• Final tax filings: You must file IRS Form 8854 and certify that you have been compliant with your U.S. tax obligations for the prior five years.
  
  
• Exit tax: If your net worth exceeds $2 million USD, or your average annual U.S. tax liability exceeds approximately $190,000 USD (2025 figure), you may owe a one-time “exit tax” on your worldwide assets.
  
  
• Professional fees: Legal and accounting assistance for expatriation planning and compliance can cost between $3,000 and $10,000 USD depending on your financial situation.
  
  

Immigration Consequences

Once you renounce, you are no longer a U.S. citizen. You will be considered a foreign national for U.S. immigration purposes. 

Dual Canadian–American citizens can usually continue to travel freely to the United States as Canadian nationals. However, there are exceptions, particularly if your renunciation raises concerns about tax avoidance.

The Reed Amendment: Entry Ban for Tax-Avoidance Renunciations

The Reed Amendment, found in Immigration and Nationality Act (INA) § 212(a)(10)(E), gives the U.S. government authority to bar entry to former U.S. citizens who renounced citizenship for the purpose of avoiding U.S. taxes.

• Date enacted: September 30, 1996 (applies only to renunciations on or after this date).
  
  
• What it does: Makes such individuals inadmissible to the United States.
  
  
• Enforcement: Rare, because it is difficult for the government to prove tax avoidance was the motive.
  
  
• Documented cases: Only two known instances of enforcement between 2002 and 2015, according to the Department of Homeland Security.
  
  
• Critical warning: If you state at your consular interview that you are renouncing “to stop paying U.S. taxes,” this may create an official record of intent and could lead to denial of future entry to the United States.
  
  

Why You Should Have Legal Guidance

Renouncing U.S. citizenship involves sensitive tax and immigration considerations that can have lifelong consequences. An experienced cross-border immigration and tax lawyer can:

• Review your U.S. tax compliance and ensure Form 8854 is properly filed.
  
  
• Advise you on how to approach your consular interview without suggesting a tax-avoidance motive.
  
  
• Determine whether you may be subject to the exit tax and how to plan for it.
  
  
• Help you preserve your right to visit the United States in the future.
  
  
• Coordinate with accountants and financial advisors for accurate reporting.
  
  

Renouncing without professional help can lead to costly errors, such as incomplete filings, unintentional misstatements, or even inadmissibility findings under the Reed Amendment. This can lead to a permanent bar from the United States. 

Step-by-Step Summary

1. Consult a qualified cross-border lawyer before beginning.
   
   
2. Book your renunciation appointment at a U.S. Consulate in Canada.
   
   
3. Complete the required renunciation forms.
   
   
4. File and certify your final five years of U.S. tax returns.
   
   
5. Attend your appointment and pay the $2,350 USD fee.
   
   
6. Receive your Certificate of Loss of Nationality.
   
   
7. Confirm your ability to visit or obtain waivers if necessary.
   
   

Frequently Asked Questions

1. Can I regain U.S. citizenship after renouncing?
In almost all cases, no. Renunciation is permanent and cannot be reversed unless it is proven that you renounced under duress or without full understanding. If you later wish to become a U.S. citizen again, you would need to immigrate through a visa or family sponsorship process and then reapply for naturalization.

2. Does the Reed Amendment apply to Canadians?
Yes. The law applies to any former U.S. citizen who renounced after September 30, 1996, regardless of nationality. However, because Canada and the U.S. share close immigration cooperation, most Canadians continue to travel without issue unless they explicitly admitted to tax-avoidance motives.

3. How long does it take to receive my Certificate of Loss of Nationality (CLN)?
Typically 3 to 6 months after your consular interview. Some cases take longer depending on workload and document verification. It can take several months to obtain a consular interview. 

4. What is the exit tax and who pays it?
The exit tax applies to “covered expatriates,” generally those with a net worth over $2 million USD or an average annual income tax liability exceeding the IRS threshold. It treats all your assets as if sold on the day before you renounced and taxes unrealized gains above a certain exemption amount.

5. Can I still visit the U.S. after renouncing?
Yes, most former citizens can visit the U.S. as Canadian citizens without a visa. However, if you are flagged as inadmissible under the Reed Amendment, you may need to apply for a discretionary nonimmigrant waiver under INA § 212(d)(3) using Form I-192.

6. Should I hire a lawyer to help me renounce?
Yes. A cross-border immigration and tax lawyer can guide you through the process, ensure tax compliance, and protect your travel rights. Legal support is especially important for individuals with complex finances or potential Reed Amendment exposure.

Ready to take the next step?

For many dual Canadian–American citizens, renouncing U.S. citizenship provides relief from complex reporting and tax obligations. However, the process is serious and permanent. Mishandling it can create lasting legal and immigration problems, including the risk of being labeled a tax-avoidance renunciation under the Reed Amendment.

Professional legal advice ensures that your renunciation is completed correctly, your tax compliance is documented, and your future travel to the United States remains protected.

Schedule a confidential consultation with an experienced cross-border immigration lawyer today: Book a Strategy Session