Renounce US Citizenship
Published on September 18, 2019
Updated on April 28, 2025
Written by: Clark Stott
Reviewed by: Rose-ann De Villa, EA, CPA
Renouncing US Citizenship in 2025: What You Need to Know
Thinking about giving up your US citizenship in 2025? You’re not alone, and it’s a big decision. In this guide, we’ll walk you through the full process: the steps, the legal forms, the costs (including the US$2,350 fee), and what renunciation really means…financially, legally, and emotionally.
And if you require further guidance in this major decision, we offer personalized assistance to help you through the process.
Reasons people renounce their US citizenship
Here are the common reasons why people voluntarily renounce their US citizenship:
- Personal: Many Americans who’ve built full lives abroad feel more rooted in their adopted country than in the US Eventually, holding on to US citizenship just doesn’t make sense anymore.
- Practical: For so-called “Accidental Americans,” people who inherited US citizenship but never truly lived in the US. The tax and paperwork burden can feel overwhelming.
- Political: US citizens are taxed no matter where they live, even if they haven’t been back in decades. Despite tax treaties, many still end up filing and sometimes paying. For some, it feels like a system that punishes global living.
- Financial: The fee to renounce has skyrocketed to US$2,350 (up from just $400). Add in legal, tax, and travel costs, and it becomes a major financial decision.
- Emotional: Some people feel out of step with the direction the US is heading. Letting go of citizenship can be as much about identity as it is about logistics.
What are the steps to renounce my US citizenship?
Step 1:
Make sure your taxes are in order or at least professional planning has taken place before you step foot in the embassy. It’s important to plan which tax returns you will file before deciding which year to renounce citizenship. The IRS demands full compliance. Exit tax can apply if you qualify as a “covered expatriate.”
Step 2:
Book your embassy appointment. You’ll need to meet in person at a US consulate or embassy where you’ll complete an interview with a US diplomatic or consular officer. You can typically use any US embassy or consulate around the world that offers citizenship renunciation.
Step 3:
Collect your identification, such as your US passport, birth certificate, CRBA, your second nationality passport, and look over forms DS-4079, DS-4080, and DS-4081. Don’t sign any of these forms until you’re asked to by a US embassy official.
Step 4:
Attend the appointment to sign and submit the forms, participate in an interview, and take the Oath of Renunciation. All activities are conducted before a US officer. Pay the US$2,350 application fee to renounce US citizenship. This is required on the day of your appointment at the embassy or consulate.
Step 5:
Wait for your Certificate of Loss of Nationality (CLN). It usually arrives in 6–12 weeks, confirming your citizenship has been officially relinquished.
Step 6:
File your final US tax return along with Form 8854. We highly recommend professional advice and assistance to complete this step.
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.”
So, there are also legal and tax implications of renouncing your US citizenship. This includes the potential for an exit tax, final tax return obligations, and the impact on social security benefits.
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.
How is the exit tax calculated?
The exit tax is calculated as if you sold all your assets the day before renouncing, giving you capital gains on that hypothetical sale. If your gains exceed the IRS exemption amount (adjusted yearly), you pay tax on the excess.
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.
Documents to prepare when renouncing US citizenship
Here is a checklist of documents you will need in order to continue with the renunciation process:
- Valid US passport: For proof of your US citizenship
- Second passport (foreign passport): For proof of your other citizenship/ nationality
- Form DS-4079: Questionnaire determining possible loss of US nationality
- Form DS-4081: Statement of Understanding of the legal and tax implications.
- Form DS-4080: Oath of Renunciation of the Nationality of the United States
Optional documents:
- Financial records: If you are subject to the US exit tax
- Prior tax returns (last 5 years): For proof that you are fully tax compliant to avoid “covered expatriate” status
Costs associated with renouncing US citizenship
Here are some fees that you might encounter when renouncing your US citizenship:
- Application fee: As of 2025, the US citizenship renunciation fee is US$2,350.
- Exit tax: This is calculated as if you sold all your assets the day before renouncing.
- Tax filing costs: Many people hire tax professionals depending on complexity.
- Currency impact: If you’re living in a country with a weaker currency, that US$2,350 can feel even heavier (sometimes like double the cost).
- Travel expenses: Such as airfare, accommodation, and transportation when going to the US embassy or consulate.
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 happens after I renounce my US citizenship?
After you renounce, you’ll receive a Certificate of Loss of Nationality (CLN), and your US citizenship is officially terminated. It can feel surreal, but that certificate marks the official end of your US obligations—and the start of your new chapter.
When do my US tax obligations officially end?
To end your US tax obligation, you’ll need to file a final US tax return and Form 8854 to certify your compliance with the IRS.
Can I reverse my decision after renouncing?
No, renouncing your US citizenship is permanent and cannot be reversed. Once you take the Oath of Renunciation and your Certificate of Loss of Nationality (CLN) is issued, your decision is final under US law.
Can I ever move back to the US after renouncing?
You can likely travel to the US as a tourist. Moving back to the US permanently could be very difficult.
Can I still receive Social Security after I renounce?
Yes, if you’re eligible based on your work history. Believe it or not, you can still receive Social Security benefits as a non-citizen. Taxation of your US Social Security income is dependent on the country you live in.
How long does the renunciation process take?
The renunciation process can take anywhere from a few months to over a year, depending on embassy wait times and how quickly you prepare your documents.
After your interview, it usually takes 6 to 12 weeks to receive your Certificate of Loss of Nationality (CLN).
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 US tax returns?
There is a special IRS program to help you catch up on your US taxes safely, without fines and penalties.
STREAMLINED AMNESTY
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.
What’s it really like to renounce US citizenship?
Meet Stephen, A born-and-bred American who walked away from his US passport
What’s the process like when you renounce US citizenship?
“The main pros were these financial freedom…”
Read more about Stephen’s story
How long does the renunciation process take?
The renunciation process can take anywhere from a few months to over a year, depending on embassy wait times and how quickly you prepare your documents.
After your interview, it usually takes 6 to 12 weeks to receive your Certificate of Loss of Nationality (CLN).
What is the difference between relinquishing and renouncing US citizenship?
Renouncing is a formal, intentional process. You appear at a US embassy or consulate, fill out forms, and take the Oath of Renunciation.
Relinquishing can happen automatically if you perform certain actions (like becoming a citizen of another country or working for a foreign government) with the intent to give up your US citizenship.
Can I renounce from within the United States?
No, you cannot renounce your US citizenship within the US. The process must happen in person at a US embassy or consulate in a foreign country. That’s where you’ll take the oath and complete the required paperwork
Why is the renunciation fee so high?
The US government set the US$2,350 fee this 2025 to cover administrative costs, including form processing, interviews, and legal documentation.
It’s one of the highest renunciation fees in the world, and many people (especially those with lower incomes or living in countries with weak currencies) see it as a major financial barrier.
Is the US$2,350 renunciation fee refundable?
Unfortunately, no. The fee is non-refundable, even if your appointment is delayed or if you later change your mind.
Can I apply for financial assistance to renounce US citizenship?
Unfortunately, the US government does not offer a formal financial assistance program for renouncing your US citizenship.
Can I still go back to the US?
Definitely! However, this time around you will face travel restrictions, loss of benefits, and the need for a visa to visit the US.
Are the names of people who renounce US citizenship published?
Yes, the US government publishes a quarterly list of individuals who have given up their citizenship, as required by Section 6039G of the Internal Revenue Code.
Where else do I go to renounce my citizenship?
Aside from the renunciation process above, Expat Tax Online offers professional assistance with your renunciation process, including help with forms, tax compliance, and embassy preparation.
Expat Tax Online has renunciation packages that cater to your specific needs. You can get a discounted quote now, making it easier and less stressful!
“They actually have a much more straightforward renunciation form”
“These general renunciation sites which would make five copies of all of these different forms… they didn’t need any of that; they had a single form, they need a single copy of, and that’s the final one.”
Read more about Jenny’s story.
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.
CLIENT MANAGER
You’ll have a dedicated team member by your side throughout the process. Our tax questionnaire is easy to use.
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