New citizenship law could change your financial future. Here’s what Canadians need to know about Bill C-3 and ‘Lost Canadians’

Immigration lawyers on both sides of the border have been overwhelmed with requests from Americans seeking help with proof-of-citizenship applications, according to The Associated Press (2). In the U.S. alone, there could be millions of people who qualify, according to Amandeep Hayer, an immigration attorney based in Vancouver.

Who is a 'Lost Canadian?'

The term "Lost Canadians" refers to people who "lost or never obtained citizenship because of certain outdated rules in earlier citizenship laws," according to the Government of Canada (3). While previous changes in the legislation covered many of those cases, it still excluded one group — including the descendants of other Lost Canadians.

Bill C-3 is designed to address that issue. As a result, tens of thousands of people are now exploring a path to Canadian citizenship, driven by anything from politics to career opportunities.

"When I first heard about the bill, I couldn't believe it," Maureen Sullivan of Naples, Florida, told The Associated Press. "It was like this little gift that fell in my lap."

Another example is Nick Wallick, a film school graduate in Seattle who suspects he has French-Canadian heritage. He told KING 5 News that dual citizenship could give him easy access to Vancouver's booming film industry — without the need for a work visa (4).

Canadian immigration attorney Amandeep Hayer told The Associated Press his Vancouver-area practice went from handling about 200 citizenship cases each year to more than 20 consultations a day.

But not everyone in Canada is enthusiastic about this recent development. Fen Hampson, Professor of International Affairs at Carleton University in Ottawa, told The Associated Press that while Canadians are generally a "welcoming people," some may look twice at those with nothing more than thin ties who are "becoming Canadians of convenience."

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What dual citizenship means from a financial perspective

As a dual citizen, you'd have the right to live, work and study in Canada without the need for a work permit or visa. And citizenship by descent comes with no residency requirement — meaning you don't have to move to Canada first.

You would also be able to hold property in both countries and, critically, would be exempt from Canada's foreign buyer bans. That exemption could represent significant savings: the federal government's foreign buyers ban, introduced under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, has been in effect since January 2023 and restricts non-Canadians from buying residential real estate in most of the country (5).

In education, students with dual citizenship pay domestic tuition rates. For the 2025/2026 academic year, tuition fees averaged $7,734 a year for Canadian undergraduate students. Compared to $41,746 a year for international undergraduate students, these costs reflect a difference of more than $34,000 each year, Statistics Canada reports (6).

Health-care coverage doesn't happen automatically

One important caveat: Getting dual Canadian citizenship doesn't automatically mean you get medical coverage from the country's publicly funded healthcare system. Since health coverage falls under provincial and territorial jurisdiction, you need to meet the residency requirements of the province or territory where you live.

For example, if you move to Toronto, you would need to apply for coverage through Ontario's Ontario Health Insurance Plan (OHIP). To be eligible, your primary residence must be in Ontario and you must be physically present in the province for at least 153 days of the first 183 days immediately after establishing residency in the province (7).

Some provinces and most territories have a three-month waiting period before new applicants can access health-care services. These include Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario (in some cases), Prince Edward Island, Nunavut and Yukon territories (8).

The tax reality of dual citizenship

One financial consideration catches many people with dual citizenship off guard: Even if you permanently move to Canada, you're still legally required to file an annual U.S. tax return and report your worldwide income to the Internal Revenue Service (IRS) (9). The U.S. is one of only two countries in the world — the other is Eritrea — where taxes are based on citizenship regardless of where you live.

However, Canadian taxes are based on residency. When you live in Canada, you'd also owe Canadian taxes on your worldwide income. That scenario could potentially create a double-taxation situation.

The Canada-U.S. Tax Treaty exists precisely to help dual citizens avoid being taxed twice on the same income. The Canada Revenue Agency (CRA) allows a foreign tax credit for taxes paid to the U.S., and similar relief is available through the IRS. But the rules are complex, and they interact with Canadian registered accounts — including Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) — in ways that aren't always straightforward (10).

If you're planning a permanent move north of the border or are managing assets in both countries, it's strongly recommended you work with a cross-border tax specialist and a dual-licensed financial adviser.

How to apply for Canadian citizenship

To obtain Canadian citizenship under Bill C-3, you need to provide proof of your ancestor's Canadian citizenship. This might include birth certificates, old passports or other official records. If those documents aren't easily accessible, there could be additional costs to tracking them down.

The application fee is $75, equivalent to about US$55. Processing time for applications is around 10 months and, as of April 23, about 56,300 people were awaiting a decision, according to Immigration, Refugees and Citizenship Canada (IRCC) (11). Last year, IRCC reported 24,500 Americans gained dual U.S.-Canada citizenship.

What this means for your finances

Whether you're a Canadian exploring the implications of this law on your community and property values, or someone researching your own eligibility, there are some concrete financial steps to take:

If you think you may be eligible:

Gather records early

The cost of the application fee ($75) is low, but the time and cost of tracking down ancestral documents can make your timeline significantly longer. Start with birth certificates, naturalization records or old passports for your Canadian ancestor.

Understand the property implications

Canadian citizenship exempts you from the federal foreign buyers ban and foreign buyer taxes in some provinces, including British Columbia's 20% Additional Property Transfer Tax for people without Canadian citizenship (12). If real estate is part of your financial plan, citizenship status matters.