How to renounce US citizenship: What to know
Renouncing US citizenship is a formal process where you give up your status as a US citizen for good. It’s not something you can do by accident or overnight.
You have to meet with a US consular officer in person, sign official documents, and take an oath. Once it’s done, you’re issued a Certificate of Loss of Nationality (CLN) and you’re no longer a US citizen.
What does it mean to renounce US citizenship?
Renouncing means you’re voluntarily cutting legal ties with the United States. It’s different from just not renewing your passport or not filing taxes, this is permanent and official.
Some people mix up renouncing with relinquishing citizenship. They’re similar but not the same. Renouncing is a formal step you take, often by choice, at a US embassy or consulate. Relinquishing is what happens when your actions, like becoming a citizen of another country with the intent to give up your US citizenship, result in a loss of nationality.
Whichever path you’re on, the end result is the same: you give up your right to live and work in the US, vote in elections, and use a US passport. You’ll also be subject to different immigration rules if you want to visit in the future.
How does renouncing US citizenship affect your rights and benefits?
📌 No more voting in US elections. You lose that right the moment you renounce.
📌 No automatic re-entry. You’ll need a visa or ESTA if you want to visit the US.
📌 No consular help abroad. The US government won’t step in if you get into legal trouble overseas.
📌 Social Security may still be available if you’ve paid in enough, but it depends on the country you live in and any agreements it has with the US.
📌 Exit tax could apply if you’re considered a “covered expatriate.” That depends on your net worth, tax filing history, and whether you meet certain thresholds.
Reasons to renounce US citizenship
A lot of people who decide to renounce US citizenship do it because keeping it just doesn’t work for their lifestyle anymore. One of the biggest reasons? Taxes.
The US taxes its citizens no matter where they live, which means if you’re living abroad, you still have to file US tax returns every year. Even if you’re not paying anything, just filing can be stressful, time-consuming, and expensive, especially if you have to deal with things like FATCA or FBAR forms.
For people who’ve fully settled in another country, this can feel like a never-ending hassle. Add in the cost of working with an expat tax pro and suddenly it’s costing you money just to stay compliant with a country you don’t even live in.
Then there’s the issue of dual citizenship. Some countries allow it, but being a US citizen can still make things complicated. Due to FATCA reporting rules, foreign banks may be reluctant to work with Americans. Many expats also feel stuck between two tax systems and seek a way to simplify their financial lives.
On top of that, there’s a lifestyle side to all this. If you’ve built your life abroad, built a family, built a career, and have no intention of moving back to the US, it can start to feel unnecessary to keep hanging on to US citizenship.
Cost to renounce US citizenship
Right now, the US government charges US$2,350 just for the actual renunciation appointment at a US consulate. That’s the filing fee for the process itself; it’s one of the highest renunciation fees in the world. There’s been talk about lowering it to US$450, but as of now, that hasn’t gone through.
But that’s just the start. If you’re thinking about renouncing, you should also plan for:
📌 Legal and tax help. Most people work with a cross-border tax expert or immigration lawyer. You’ll need to make sure you’ve filed everything properly and that you understand what’s waiting for you on the other side.
📌 Exit tax. This is a big one. If you’re a “covered expatriate” (usually based on your income, net worth, or past filing history), you might owe an exit tax. It works like this: the IRS treats it like you sold all your assets the day before you renounced and taxes you on the pretend profit. For some, it’s nothing. For others, it can be significant.
📌 Travel costs. You have to renounce in person, and not every embassy or consulate has open appointments all the time. You might need to travel to another city or even another country to make it happen.
Process for renouncing US citizenship
- Make an appointment. You have to schedule a time with a US embassy or consulate in another country. Not all of them handle renunciations, and some are really backed up, so check their website for details.
- Fill out the required forms. You’ll be dealing with a few:
- Get your documents together. Bring your US passport, any foreign passports you have, a government-issued photo ID, and proof of your citizenship in another country. The US won’t let you renounce if it means becoming stateless.
- Show up for your appointment. You’ll meet with a consular officer who’ll walk you through everything. They’ll explain what you’re giving up, make sure you’re doing it voluntarily, and ask if you still want to go through with it. If you say yes, you’ll take the oath then and there.
- Pay the fee. The current cost is US$2,350. Some consulates may require payment in local currency or have specific payment rules, so double-check that ahead of time.
- Wait for your CLN. After your appointment, your paperwork goes to the State Department in Washington for final review. Once they approve everything, you’ll get your Certificate of Loss of Nationality (CLN). That’s your official proof that you’re no longer a US citizen.
Thinking about renouncing your US citizenship?
Let’s discuss the ins and outs and help you decide if it’s right decision for you.
What is the US Exit Tax when renouncing US citizenship?
The Exit Tax is a one-time tax some people pay when giving up US citizenship. It’s based on the idea that you’ve “sold” your assets the day before renouncing, and it applies if you’re considered a “covered expatriate.”
Who qualifies as a “covered expatriate”?
You may be considered a covered expatriate if:
- Your worldwide net worth is US$2 million or more,
- Your average annual US tax liability over the past 5 years exceeds US$190,000,
- Or you fail to certify that you’ve fully complied with US tax laws for the past 5 years through Form 8854.
Can I avoid the exit tax?
Yes, you’ll need to ensure that your net worth and average tax liability are below the thresholds of a “covered expatriate” and you’ve been fully tax-compliant for the previous 5 years.
Renunciation Packages
Relief Procedures For Certain Citizens
If you meet all the criteria, you can use this program.
- You’re a US citizenship holder who has never filed a US tax return except for a 1040NR.
- You have US citizenship but not necessarily a Social Security Number.
- You have US citizenship and a net worth below US$2 million.
What if I’m way behind on my U.S. tax returns?
Streamlined Amnesty
There is a special IRS program to help you catch up on your US taxes safely, without fines and penalties.
It’s for American citizens who didn’t know they had to file US tax returns each year and have, therefore, fallen behind—some by more than 30 years!
Standard Renunciation Program
If you don’t qualify for the Relief Procedure for Certain Citizens, then use this program.
- You must have citizenship of another country.
- You’ll need a Social Security Number; if you don’t have one, we can help.
- Tell us if your net worth is above US$2 million.
Why work with Expat Tax Online?
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At least 35 members of our tax team are licensed by the IRS. That’s easy to verify on the official IRS website.
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You’ll have a dedicated team member by your side throughout the process. Our tax questionnaire is easy to use.
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