Renouncing US Citizenship
The nuclear option. Most expats don't do it — but the ones who do want to stop filing US taxes forever. Here's the full process.
About 6,000 Americans renounce citizenship each year — up from a few hundred a decade ago, but still a tiny fraction of the ~9 million Americans living abroad. The primary motivation is almost always taxes: the US is one of two countries on Earth (the other is Eritrea) that taxes citizens on worldwide income regardless of where they live. Renouncing is the only way to permanently end that obligation.
It's expensive, slow, irreversible, and emotionally significant. It also comes with its own tax bill on the way out. This page covers the full process — what it costs, what triggers the exit tax, and whether it's worth it for your situation.
The process
Get a second citizenship
You must be a citizen of another country before renouncing — the US won't let you become stateless. This is usually the longest step.
File 5 years of US tax returns
You must be tax-compliant for the 5 years preceding renunciation. If you're behind, catch up first (Streamlined Procedures if needed).
Schedule consular appointment
Contact a US embassy or consulate abroad. You cannot renounce inside the US. Wait times vary — some consulates have 3–6 month backlogs.
First appointment: statement of intent
You'll sign DS-4079 (Request for Determination of Possible Loss of US Nationality). The consul will ensure you understand the consequences.
Cooling-off period
Typically 2–4 weeks between appointments. This is intentional — they want you to be sure.
Second appointment: oath of renunciation
You'll sign DS-4080, take the oath, pay the $2,350 fee, and surrender your passport. It's final.
File Form 8854 (exit tax return)
Due with your final US tax return. This is where the exit tax is calculated if you're a covered expatriate.
Receive CLN
Certificate of Loss of Nationality arrives 3–12 months later. Your name appears in the Federal Register's quarterly list.
The exit tax — "covered expatriate" rules
Not everyone pays exit tax. You're a "covered expatriate" — and subject to mark-to-market taxation on your way out — if ANY of these are true:
- Net worth test: Your net worth is $2 million or more on the date of expatriation
- Tax liability test: Your average annual net income tax liability for the 5 preceding years exceeds ~$201,000 (2025, adjusted for inflation)
- Compliance test: You fail to certify that you've been tax-compliant for the preceding 5 years
If you're covered: the IRS treats all your assets as sold at fair market value the day before expatriation. You get an exemption on the first ~$886,000 of gain (2025). Everything above that is taxed as capital gains. Deferred compensation (401k, IRA, pension) is subject to 30% withholding on future distributions. This is not retroactive double taxation — it's accelerated taxation on unrealized gains.
Why most expats don't renounce
Of the ~9 million Americans abroad, only ~6,000/year renounce. The math usually doesn't work:
- FEIE + FTC already eliminates most US tax liability for moderate-income expats
- You lose visa-free access to the US (need a tourist visa or ESTA)
- The $2,350 fee + legal costs ($5,000–$15,000) are steep for tax savings that may be modest
- It's irreversible — you can't change your mind
- Social Security is still payable to non-citizens in most countries (via totalization agreements)
- Emotional weight — it's not just paperwork
The math starts to favor renunciation for high-net-worth individuals with significant investment income (which FEIE doesn't cover) and no plans to return to the US. For everyone else, filing is annoying but cheaper than leaving.
❓ Common Questions
How much does it cost to renounce US citizenship?▾
The State Department fee is $2,350 — the highest renunciation fee in the world by a wide margin (most countries charge $0–$200). Plus you'll need a tax attorney ($2,000–$10,000+) for Form 8854 and exit tax planning. Total realistic cost: $5,000–$15,000 depending on complexity.
Do I have to pay an exit tax?▾
Only if you're a 'covered expatriate' — net worth over $2 million, average annual net income tax liability over ~$201,000 (2025, adjusted annually), or failure to certify 5-year tax compliance. If you're covered, you pay mark-to-market capital gains tax on unrealized gains above ~$886,000 (2025 exemption). Most middle-income renunciants aren't covered.
Can I still visit the US after renouncing?▾
Yes, but as a foreign national. You'll need a visa (most likely B-1/B-2 tourist visa) or an ESTA if your new citizenship qualifies for the Visa Waiver Program. The Reed Amendment theoretically bars re-entry for people who renounced to avoid taxes, but it has never been enforced.
How long does the process take?▾
Typically 12–18 months from first consular appointment to Certificate of Loss of Nationality (CLN). Some consulates have multi-month backlogs for the initial appointment. You'll have at least two consular visits. During the process, you're still a US citizen and must continue filing US taxes.
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