Obtaining Canadian Citizenship Does Not Require Paying Canadian Taxes
One advantage of Canadian citizenship is that simply becoming a citizen doesn’t automatically create Canadian tax obligations. Unlike the United States, which generally taxes its citizens regardless of where they live, Canada bases its personal income tax system primarily on residency.
If you choose to settle permanently in Canada as a dual citizen and become a Canadian tax resident, you may benefit from the U.S.-Canada tax treaty, preventing double taxation by allowing certain taxes paid in one country to be credited against taxes owed in the other.
Understanding Citizenship by Descent
Citizenship by descent is intended for people who were born outside Canada but have Canadian roots. The only exceptions are children born on Canadian soil or airspace and children of foreign diplomats.
The change came through Bill C-3, which took effect on December 15, 2025. Before this change, Canadian citizenship by descent was limited for first-generation born outside the country, a restriction commonly referred to as the first-generation limit (FGL). The system is similar to the one in Ireland, where you can claim a passport even if only one grandparent is from there.
The first-generation limit (FGL), which was introduced into Canada’s Citizenship Act in 2009, was declared unconstitutional by the Ontario Superior Court of Justice in December 2023.
In response to the court’s ruling that the first-generation limit was unconstitutional, the Canadian government introduced Bill C-3, which removed the restriction for individuals born before December 15, 2025. For children born on or after December 15, 2025, the legislation provides an exception to the first-generation limit (FGL).
The exception applies to cases where the Canadian parent has lived in Canada for at least three years before the birth or adoption of the child.
