- in Canada
A massive shift is taking place among US citizens living abroad: nearly half are now considering renouncing their US citizenship.
According to a 2025 survey by an international tax consultancy, the percentage of overseas Americans considering renunciation has surged from 30% to 49% between 2024 and 2025. While headlines often focus on politics, the real driving force behind it is what hits expats where it hurts most: their wallets.
For those who are not aware, the US is one of two countries in the world that taxes on citizenship. That means, no matter where you are in the world, or how little time you spent in the US (if any), a US citizen living abroad is taxed on their worldwide assets and income by the IRS in life and in death. Period. No exceptions. This does not end well financially for the US expat when they are taxed as a resident in the country they live in, while also owing a pound of flesh to the US as a citizen.
From the annual filing costs, the stress, and the double taxation throughout life, to the missed investment opportunities—because you know they're "tax toxic" for U.S. citizens abroad—and even potential estate tax disasters at death, there is no economic formula that suggests being taxed by two countries is better than one. EVER. That's why it's time to get one of those hands out of your cookie jar.
Renouncing US citizenship is the way to do just that. But it is a significant life decision that involves many legal, financial, and personal considerations. Our Renunciation Team has worked with over 7000 individuals who have successfully navigated this process across six continents over 15 years. That's more than any firm in the world.
During that time, we've compiled answers to the top 10 most Frequently Asked Questions we hear from those considering this path. These responses are high-level and informational, and you should always seek tailored guidance from one of our US lawyers at Moodys Tax before making any final decisions.
1. Can I still collect Social Security after I renounce?
Yes. When one properly renounces, they are eligible to collect every cent of Social Security that they would have earned if they did not renounce. If you've worked enough qualifying years in the US to earn Social Security benefits, you can still collect them after renouncing. Keep all the good (Social Security benefits), while getting rid of the bad double tax in life and in death!
2. Will I be harassed at the border when I travel to the US after I renounce?
No. This is one of the biggest misconceptions about renouncing. Once you've formally renounced the right way and received your Certificate of Loss of Nationality (CLN), you'll enter the US as a visitor like any other citizen using your fallback passport. No better, no worse! Moodys Tax has helped thousands properly renounce and return to the US with no hassle, whenever they want. This is true per travel to the US after correctly renouncing, before Trump, during Trump's first term, after Trump, and during Trump again.
3. Will I be hit with an exit tax when I renounce?
We make sure the vast majority of our renouncing clients avoid the US exit tax through proper planning. The US exit tax applies to individuals who are classified as "covered expatriates" when they renounce the wrong way. This includes those who meet certain income tax, net worth, or tax compliance thresholds. If you're subject to this classification, you may face a deemed disposition of your worldwide assets on the day of renunciation. But the good news is that under current US tax laws, we can plan to avoid the US exit tax with individuals with $17M USD or less.
And for those with more than $17M USD in net worth, there are options to purposefully walk you into the US exit tax, but plan to make the tax owing zero or near zero. Always consult one of our US lawyers for a full consultation and analysis. A path to renounce and while avoiding an exit tax is almost always an option.
4. Will I be blacklisted from the US for life after renouncing?
No, not if your renunciation interview is done properly under the Reed Amendment. The commitment of renunciation is an interview at a US Consulate or Embassy. During the interview, they document your answers to be sent to the US Attorney General's Office in Washington, DC for approval. If they determine you are renouncing to avoid tax, you can be blacklisted for life. But don't worry – in over 7,000+ renunciations, Moodys Tax has never had a single client blacklisted. We prep for every interview correctly! As mentioned, when we are done the process, every former citizen is free to visit the US just like any citizen on your fallback passport. And not be harassed when you do it!
5. Can I become a US citizen again?
Reacquiring US citizenship is possible. If you renounce and later wish to become a US citizen again, you can go through the same immigration process as any other citizen using your secondary or backup passport.
6. How long does it take to get an appointment to renounce?
Wait times vary depending on the US consulate or embassy. In high-demand jurisdictions, it can take several months—or a year plus—to secure an appointment. Some consulates are more efficient than others, and delays are common. Our team can help expedite your renunciation process by identifying US embassies and consulates with shorter wait times and friendlier officers. Moodys Tax has the largest sample of active renouncers in the world, to know in real time, quick places to get interviews to renounce, and where to avoid.
For a motivated client looking to renounce quickly before a taxable event (home sale, business sale, non-US corporation tax, estate tax, etc.), we can secure a date to renounce in as quickly as six to eight weeks! And the day after the interview, one is free from the US citizen-based tax regime!
7. Will I have to pay US tax on the sale of my home if I sell it before renouncing?
Most likely. If your principal residence has appreciated significantly in value, you could face expensive US capital gains tax upon sale. The US exempts only the first $250,000 USD of gain, which creates a significant problem for US citizens selling property in major cities like London, Toronto, Vancouver, Sydney, Hong Kong, and many more.
You risk owing hundreds of thousands of dollars on the sale of your home if you don't renounce before selling. But again, here's the good news: if we renounce you properly and avoid the US exit tax while doing it, one can sell their home the very next day after the interview and pay nothing to the IRS! And no, holding jointly with your non-US citizen spouse won't save you. In fact, selling the principal residence before you renounce will only have you and your non-US citizen spouse fuming come US tax-filing time!
8. Can I renounce my US citizenship and still hold US bank accounts, credit cards, 401(k)s, IRAs, Roth IRAs, etc. after I renounce?
Yes! When we renounce the right way, your Social Security Number (SSN) still stays yours. You can continue to maintain US bank accounts, credit cards, retirement plans, investments, real estate, and more. An ideal scenario!
9. Do I still need to file US tax returns after renouncing?
Only until your renunciation is complete. The day of your interview is the day you stop being taxed as a US citizen. You will be responsible for filing a final dual-status return and Form 8854 (Expatriation Statement) to formally exit the US tax system (your interview date at the consulate/embassy). After that, assuming proper filings are made, you will no longer have a US tax-filing obligation based on citizenship status!
10. Will I still be subject to the US estate/death tax on my worldwide assets after renouncing?
No. Former citizens are no longer subject to the US estate tax on their global estate. A massive relief for your loved ones to not have to deal with the IRS while mourning your passing. Not to mention the accounting bills avoided!
Make an Informed Exit
As previously discussed, proper renunciation of US citizenship can eliminate burdensome citizenship-based filing requirements while still allowing expats to travel to the United States without harassment at the border, retain their hard-earned Social Security benefits, and invest in US assets. With proper planning, it is also almost always possible to renounce without any adverse US tax consequences. The current rules are the best in history to renounce and avoid the US exit tax altogether.
Renunciation can be a complex and intimidating process, but the vast majority of potential negative consequences, including difficulties in travelling to the United States, can be avoided if it is done the right way.
Moodys Tax Law is only about tax. It is not an add-on service, it is our singular focus. Our Canadian and US lawyers and Chartered Accountants work together to develop effective tax strategies that get results, for individuals and corporate clients with interests in Canada, the US or both. Our strengths lie in Canadian and US cross-border tax advisory services, estateplanning, and tax litigation/dispute resolution. We identify areas of risk and opportunity, and create plans that yield the right balance of protection, optimization and compliance for each of our clients' special circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
