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Is it better to switch from US to Canadian Citizen?

sgp1986

sgp1986

Star Member
Jan 2, 2020
171
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I'm a US citizen, Canadian PR, and I believe I'm eligible to apply for citizenship. I've gone back and forth on it, if I should, and if I did should it be a dual or full out swap. I've thought it would be better to swap it because otherwise I'll always have to pay taxes to the states. With all thats going on down there now, part of me thinks it would be best to cut ties but another is worried if I did if I would have any difficulties in the future with visiting family.

Has anyone else made this decision recently and could chime in, or anyone that has any pros/cons to either decision?
 
sgp1986 said:
I'm a US citizen, Canadian PR, and I believe I'm eligible to apply for citizenship. I've gone back and forth on it, if I should, and if I did should it be a dual or full out swap. I've thought it would be better to swap it because otherwise I'll always have to pay taxes to the states. With all thats going on down there now, part of me thinks it would be best to cut ties but another is worried if I did if I would have any difficulties in the future with visiting family.

Has anyone else made this decision recently and could chime in, or anyone that has any pros/cons to either decision?
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I would never renounce my dual citizenship meaning my birth citizenship and the Canadian citizenship. I don't know what future holds even though I love being Canadian and proud of my birth citizenship!
In your case, even though US is a great nation, they are always involved with wars and everything, so no easy way out for you. Canada will always be tied to the US somehow and vice versa, we share borders. In my opinion, don't revoke your US citizenship but in the end of the day it is up to you.
 
I'm in the same boat. I make less than the threshold, so I pay my taxes here in Canada and only have to file in the states. It's an annoyance, but my taxes are simple and I have accountants on both sides of the border do them. I also still have family in the states and wonder about what the implications are of getting to see them if I renounce my US citizenship.

I'll keep tracking this thread to add any thoughts I have.
 
This reminded me of www dot youtube.com slash watch?v=tZqys1zrXv0 for some reason - a video by NomadCapitalist on why you want to leave the US. But even though he is a former US citizen who gave up his citizen after living many years overseas, he says (seemingly as a recommendation) not to give it up right away, rather take a wait and see attitude to it (as he did) to make sure it's the right decision for you. Considering that this step is usually irreversable, it seems like sound advice.
 
One issue to consider, beyond anything related to visiting family in the US, is a financial one: do you currently derive any income from the US, or will you in the future, for example from a pension, rental income, or investments? If so, then renouncing your US citizenship will mean tax complications on that US-derived income. For example, the US government will withhold 15-30% upfront on most US non-employment income if you are living in Canada and no longer a US citizen. You can recoup that amount by filing US taxes... but then that defeats the purpose if your intent in renouncing US citizenship is to no longer file US taxes. There are many other tax implications because the US specifically wants to discourage people from renouncing their citizenship in order to reduce their taxes or avoid filing in the US.

Even if you don’t have any US-derived income, I found this book by Brian Wruk to be very helpful in explaining the many issues related to renouncing US citizenship:

https://www.simonandschuster.com/books/The-American-in-Canada-Revised/Brian-D-Wruk/9781770410893
 
I am US by birth and came to Canada as a PR after I retired (yes, indeed). I am now a Canadian citizen. I have no intention of returning to the US at this point in my life.

The politics in the US make me quite ill, it's become like Idiocracy, the movie, in part. Even so, I do not plan to renounce my US citizenship. There are a number of "good" reasons not to do so but there's the consideration that situations may change. So I don't want to burn my bridges behind me.

The "good" reasons not to renounce include the exit income tax. I'm not certain how much this would cost me, if anything (I am above the asset range to have to consider this). And I currently collect a hefty Social Security retirement benefit; I could live just fine without this but I would rather not endanger it (although the clowns in Washington may run this program into the ground yet). And there is Medicare (retirement medical insurance for retirees): I've cancelled the coverages that I would have to pay monthly premiums for (eg: Part B and Part D) but Part A is "free" to me and there's no need to terminate it. But should I ever go back to the US permanently it would be very good not to mess around with Medicare.

So my case is that I worked my entire career in the US and all of my retirement assets (Social Security and personal investments) are in the US. Those younger than me will have different situations and considerations. Someone in their 20's might find it worthwhile, financially and emotionally, just to renounce and cut all ties to the US. Those who emigrated in their 30's-40's might need to weigh their particular circumstances and beliefs, and ties to the US. Anyone emigrating at an older age might benefit by not renouncing.

Good luck!
 
abff08f4813c said:
Going off-topic but - how? How can someone obtain PR by retiring in Canada? Asking for my extremely elderly grandfather.
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There is no PR path for retirees.

Only realistic option would be to be sponsored by you through PGP. This of course assumes you are a PR or citizen, are living in Canada, qualify for PGP sponsorship, and that the program reopens and you are selected.
 
abff08f4813c said:
Going off-topic but - how? How can someone obtain PR by retiring in Canada? Asking for my extremely elderly grandfather.
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My wife has Canadian citizenship. When we married she came to the US. Eventually I retired and we decided to move to Canada, her parents and siblings/families are all here.

Spousal PR is the easiest to obtain. If grandfather is married to a citizen then he's in for sure. But he can be sponsored by other family members....children. Perhaps even a grandchild?

see https://www.canada.ca/en/immigratio...sponsorship/sponsor-parents-grandparents.html
 
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