What's Next?

Gifts in Canada are generally not taxable. If you receive a gift from a friend or family member, you don’t need to pay tax on it.

Unlike many other countries that impose a direct tax on inheritances, Canada's approach to taxing inheritances is more nuanced and indirect.

If you're a dual citizen of the U.S. and another country, like Canada, you are taxed on your worldwide income by the U.S., no matter where you live. For example, even if you're living in Canada and earning income there, the U.S. expects you to report your global earnings. However, most countries, including Canada, have tax treaties with the U.S. to help avoid double taxation.

Reporting a foreign inheritance to the Canada Revenue Agency (CRA) is crucial for compliance and avoiding potential penalties.

This guide is an overview and should not be considered a substitute for seeking the professional advice of a cross-border accountant.

Deciding to renounce U.S. citizenship is a significant and personal choice that involves evaluating your unique circumstances and plans.