Canada’s Immigration, Refugees and Citizenship Canada (IRCC) has rolled out pivotal updates to citizenship rules and entrepreneur immigration pathways, signalling a strategic pivot amid evolving economic priorities. These changes, announced mid-December 2025, target second-generation Canadians born abroad and overhaul the Start-Up Visa Program, reshaping options for innovators and families. Below is a breakdown for legal practitioners, employers, and applicants navigating these shifts.
Citizenship Rules Tightened for Abroad-Born Generations
Effective immediately, amendments to the Citizenship Act alter eligibility for certain second-generation and later descendants born outside Canada before December 15, 2025. Previously, children born abroad to a Canadian parent (first-generation limit) could sometimes transmit citizenship if the parent had substantial ties, like prior residence in Canada. The new rules close this “Lost Canadians” loophole more firmly:
- Affected Group: Individuals born abroad to Canadian parents who themselves were born outside Canada (second-generation+) before the cutoff date lose automatic citizenship transmission rights unless they meet strict residency thresholds.
- Grandfathering: Applications filed prior to December 15 qualify under old rules; post-deadline claims require proof of 1,095 days (three years) physical presence in Canada by age 28.
- Implications: Families with multi-generational expatriate ties face revocation risks or mandatory renunciations. Corporate clients sponsoring overseas executives must audit employee family citizenship status to pre-empt disputes.
This aligns with long-standing debates on citizenship-by-descent limits, now codified to prioritize domestic ties amid net migration controls.
Start-Up Visa Program Closure and Entrepreneur Pivot
IRCC will cease accepting most new Start-Up Visa (SUV) applications by December 31, 2025, alongside halting related open work permits. Launched in 2013 to attract global innovators, the program required backing from designated organizations (e.g., VCs, incubators) but faced criticism for high costs, low success rates (under 10% PR approvals), and exploitation risks.
- What’s Ending: New SUV principal applicant filings and optional spousal open work permits. Existing applicants in queue proceed, but no extensions for incomplete submissions.
- Replacement Pathway: A streamlined “Entrepreneur Pathway to Permanent Residence” launches Q1 2026, emphasizing active investment over passive funding.
- Transition Advice: Applicants should pivot to Provincial Nominee Programs (PNPs) like Ontario or BC entrepreneur streams or federal Self-Employed Persons for cultural/athletic fields. Firms handling tech transfers must refile under Intra-Company Transfers (ICTs) or Global Talent Stream for interim relief.
These moves reflect Canada’s post-2025 immigration recalibration, capping temporary residents and favouring economic contributors. Processing backlogs persist, citizenship grants at 13 months, but entrepreneur shifts promise faster PR ramps.
Action Items for Practitioners:
- Review client citizenship trees for abroad-born heirs.
- Redirect SUV hopefuls to PNPs or C11 Significant Benefit work permits.
- Monitor Canada Gazette Part II for regulations (expected January 2026).
Stay compliant: These updates underscore IRCC’s enforcement push. For tailored audits or filings, consult specialists.
Disclaimer: The information published in the above newsletter is collected from various sources in electronic medium and analyzed by the firm. The reader is advised to consult the attorney qualified in their jurisdiction, before acting on any information contained in this newsletter. India Juris excepts no liability what so ever in this regard.
