Thoughts From a "Lost Canadian" About the Challenges with Duel Citizenship & Moving to Canada

Since this past April when I learned I am a "Lost Canadian", I've been learning about how amazing Canada is - if once we have our paperwork collected and receive our Canadian citizenship, we could decide to move to Canada. There seems to be many reasons why this could be an excellent move, but as with any big decision, while there many be benefits to a decision, there are likely challenges as well. Today I want to write about some of the challenges with having duel citizenship and moving to Canada - tomorrow I will write about the benefits, which are many. Online I learned . . . 

Having dual citizenship with the U.S. and Canada has very few major drawbacks, but it comes with continuous tax-filing paperwork and certain government or military restrictions. 

📊 Tax and Reporting Obligations

📄 U.S. Worldwide Taxation: The U.S. taxes its citizens on global income no matter where they live. 
📑 Dual Filing Burden: If you live in Canada, you must file both U.S. (IRS) and Canadian (CRA) tax returns annually. 
⚠️ No Double Tax: The U.S.–Canada tax treaty prevents you from being taxed twice on the same income, but the paperwork remains mandatory.
💡 Cross-Border Accounts: Certain investments (like U.S. Roth IRAs or Canadian TFSAs) require special tax elections to avoid penalties or unexpected cross-border taxation. 

📌 Employment and Security Limits

🔎 Security Clearances: Holding Canadian citizenship can complicate or delay high-level U.S. federal security clearances due to questions of foreign preference. 
⚠️ Government Jobs: Certain sensitive or defense-related government roles in either country may restrict dual nationals. 
💡 Military Service: Active U.S. military members can face career or retirement restrictions if they formally acquire or exercise privileges of a second citizenship. 

🗓️ Travel and Legal Logistics

✈️ Passport Rules: You must use your U.S. passport to enter the U.S. and your Canadian passport to enter Canada.
💡 Consular Limits: If you are in Canada, U.S. consular assistance may be limited because Canadian authorities view you as a local citizen.

Houses in Canada are generally expensive, with a national average home price sitting at approximately $668,351 CAD as of August 2026. 

Major Cost Factors

High Demand and Low Supply: Rapid population growth in major hubs has heavily outpaced new home construction. 
Strict Regulations: Lengthy approval processes, urban containment boundaries, and high municipal development charges add significant costs to building new homes. 
Regional Disparities: Costs are not uniform; major metro areas like Toronto and Vancouver require over 10 times the average local household income to buy a median home. 

Regional Differences

Most Expensive: British Columbia and Ontario feature the highest average prices and severe affordability gaps, though prices have dipped slightly from historic peaks. 
More Affordable: Provinces like Newfoundland and Labrador, parts of Quebec, and the prairie provinces (such as Edmonton and Calgary) offer much lower average purchase prices and better price-to-income ratios.

So, yes, in some areas it may be expensive to live in Canada - but this is true in the US, too. But it is important to have an idea of what the challenges may be when considering getting duel citizenship and possibly making a big move. Tomorrow I'll share some of the benefits, because along with there being challenges, there are benefits as well!