Americans Are Renouncing Their Citizenship. This Lawyer Makes It Happen.

Douglas Cowgill has spent the last decade helping Canadian-Americans renounce their U.S. citizenship. And in the new Trump era, as more Americans consider cutting ties, he’s become a hot commodity. “There’s no question, we’ve gotten a huge uptick in requests,” says Cowgill, although politics are just part of it (see also: paperwork). Here, he describes what’s involved in an official renunciation and why Trump-era border policies are changing the calculation.

You’ve been providing legal counsel to Canadian-Americans interested in renouncing their U.S. citizenship for a decade. How did you get into this specialty? 

I moved to Canada in 2011 for a relationship. I had just finished law school and was free to go wherever, so I followed my future wife, who was already working as a teacher in Vancouver. I began figuring out how I could use my American degree in Canada, rather than going back to school to become a Canadian lawyer. The two options I had were immigration and tax law. Immigration seemed more interesting to me, particularly since I was going through the process myself. Early on, a lot of my clients were Canadians looking to move to the U.S., but around 2015 we started to see more and more Americans looking to renounce U.S. citizenship. 

Was that a Trump bump?

It was and it wasn’t. Certainly, Trump had prompted a spike in the number of Americans interested in renouncing, but the 2010s was also when we started to see the impact of U.S. tax policy on dual citizenship. In America, people are taxed based on citizenship, not on where they live. If you’re an American living in Canada, things like capital gains and even tax-free savings accounts might be subject to clawbacks from the IRS, in addition to the tax you’re paying in Canada. There are financial implications, but it’s also the time and resources required to keep up with the paperwork, which is complicated and, for most people, requires an accountant. On the other hand, there can be financial implications to renouncing, so it’s a calculation. 

What about the explicitly political reasons for renunciation?

The administration and taxation costs are still the biggest motivators, but we have seen a significant spike following the 2024 election—probably around double the amount from this time last year. We’ve had people come in because they don’t want that connection to Trump and the kind of country he’s leading. Occasionally it’s someone who has been living in the U.S. and wants to come home and cut ties, or it’s someone who might feel specifically endangered by the Trump administration (a transgender individual, for example). 

Mostly, though, it’s people who have spent their entire lives living in Canada and have the U.S. citizenship through a parent, were born in the States while their parents were at university, or have been living and working here for a long time. Having that U.S. citizenship had previously been a bonus, maybe something helpful towards future employment, but the calculation has changed. The biggest difference we’ve seen over the past few months is that the people coming to us aren’t wanting to learn more about their options. They have done their research and are ready to renounce. 

You renounced your U.S. citizenship in 2021. What was your trigger event?

The pandemic pushed me over the edge. For so long, I was going back and forth to the U.S. several times each month, and then suddenly, there was this long stretch of time where all the Americans living in Canada couldn’t go home. It got me thinking about how maybe the pains—like the paperwork, the legal and accounting fees—weren’t worth the gain. I had always felt a certain amount of relief travelling to the U.S. and not having to worry about whether having my work computer or a file was going to draw the attention of a border officer. But when I didn’t go back for many months, I decided I was okay taking that chance. 

Has the calculation changed amid our southern neighbour’s new and aggressive border policies? 

Like so many other people, I am travelling to the U.S. less. When I do cross the border, I’m careful not to have my work computer or any work files in my car. I live close to the border and hear reports about people going to the States with seemingly valid travel documents and then being detained. There was the case of the B.C. woman who was held in detention for 11 days, and so many other alarming reports. I’ve never seen anything like it, that a valid travel document would be subject to interpretation by a border officer. It leaves people in a state of confusion. 

Does the Trump administration’s new approach to the border change the advice you’re giving to clients?

Absolutely. The most common question we get is how renunciation would impact their ability to travel to the U.S. Last year I would have said Canadians visiting the U.S. on a Canadian passport was not an issue. Now it’s hard to commit to that same sentiment when we have evidence to the contrary. The new administration is unpredictable, and there’s a possibility that rules could change with nearly four more years to go. 

How does the renunciation process work, exactly? 

It’s typically a two-stage process. There’s the immigration piece and the tax-filing aspect. Our firm typically starts off with a call where we talk about the consequences. We want to make sure the person is 100 per cent aware of what they are giving up. So for example, do they have any children or family members who may be looking to move to the U.S. and would benefit from the applicant being able to sponsor them? Or do they have a criminal offence that could restrict their ability to travel to the U.S. on a Canadian passport? Next, we will have them talk to their accountants to make sure that renouncing won’t result in an onerous exit tax that they can’t afford. 

What might that look like?

Let’s say you came to Canada 30 years ago, bought a home for $300,000 and today that home is worth $2 million. When you renounce your U.S. citizenship, you have to pay capital gains on the current value of the property even though you have not sold your home. That’s the kind of price tag that could be prohibitive. 

What other costs are associated with the renunciation process? 

You’re looking at several thousand in legal and accounting fees, along with a government filing fee of US$2,350. That gets paid to the U.S. State Department on the day of their interview, which takes place at one of the U.S. consulates across Canada. Currently the wait time at the Vancouver consulate is about two to three months, which is significantly longer than usual. In Toronto and Montreal, wait times are up to eight months. Whenever the time does come, the person will sit for an interview with an officer. 

What might be a red flag for an officer conducting the interview? 

A common one would be age. If the applicant is 18 to 25 years old, the officer might be concerned they haven’t considered the long-term implications, or that they are limiting their career choices too early. Another could be a cognitive medical condition that makes it unclear if they’re able to fully understand the process. It could also be someone who has only recently left the U.S., so there might be questions about whether they’ve really thought through. It’s important for people to understand that this is a final decision.

Meaning there is no renouncing your renunciation?

As far as I’m aware, there is not. 

Can you imagine a scenario where former Americans like yourself are penalized? 

As of now, a Canadian-American who renounces their U.S. citizenship is the same as a Canadian. But let’s hope it stays that way and that the Trump administration doesn’t begin treating former citizens differently as part of a punitive agenda, where people who choose not to be American should be punished for their choice. The way things are going right now, that doesn’t seem so far-fetched. 

Do you wonder if you made the right choice?

No. And, honestly, in terms of what I’m hearing from friends and family, I feel like I was ahead of the curve. They are all embarrassed by what’s happening in America right now. It brings me a lot of relief to be able to say, “That is not me. I am not a part of that.” Of course, a lot of the U.S. news is unavoidable, but I don’t feel the pressure to follow state elections and keep up with all the details. Instead I can focus on engaging in Canadian politics, where I still feel like I can have an impact and feel proud of my country.

This interview has been edited for length and clarity.