U.S. Cuts Citizenship Renunciation Fee by 80% — What It Means

The U.S. Department of State has reduced the cost of renouncing U.S. citizenship by about 80%, lowering the fee from $2,350 to $450.

The change, finalized in a new rule published Friday in the Federal Register, took effect immediately. It marks a reversal of a 2015 fee increase that had drawn years of legal challenges and criticism from Americans living abroad.

Why the fee was lowered

The fee had been raised in 2015 to cover administrative costs, as more Americans sought to formally renounce their citizenship. But critics argued the price created a barrier to what they see as a fundamental right.

Groups representing so-called “accidental Americans” — people who hold U.S. citizenship due to birth but have lived most of their lives abroad — pushed for the reduction through lawsuits and advocacy.

The State Department said the decision is due to:

• Public concerns about the high cost
• Evidence that tax-related burdens are driving renunciations
• A policy shift to make the process more accessible

The new $450 fee returns to the level first introduced in 2010 and is below the government’s actual processing cost.

What the process still looks like

Even with the lower fee, renouncing U.S. citizenship remains complex and time-consuming.

Applicants must:

• Appear in person at a U.S. embassy or consulate
• Complete multiple written and verbal confirmations
• Swear a formal oath of renunciation
• Wait for final approval and issuance of a Certificate of Loss of Nationality (CLN)

The process can take months or longer, depending on appointment availability at U.S. consulates and embassies.

Why more Americans are renouncing

The number of Americans giving up citizenship has risen in recent years. A Boundless report on U.S. citizenship renunciations found that annual renunciations have risen from just a few hundred before 2009 to more than 5,000 in several recent years.

Common reasons include:

• Complex U.S. tax reporting rules for citizens abroad
• Banking and financial restrictions in other countries
• Political or personal considerations

U.S. citizens must file annual tax returns regardless of where they live. For some, especially accidental Americans, this creates ongoing compliance challenges.

What this means for immigrants and dual citizens

This policy does not affect eligibility for U.S. citizenship or green cards. But it highlights how U.S. citizenship comes with long-term obligations, even for those living abroad.

If you are considering U.S. citizenship or already hold it alongside another nationality, it’s important to understand:

• U.S. tax obligations apply globally, not just within the U.S.
• Renouncing citizenship is permanent and difficult to reverse
• The process still requires significant time, documentation, and planning

What you can do now

• Understand the long-term commitment: Before applying for U.S. citizenship, review tax and reporting requirements, especially if you plan to live abroad.
• Get clarity on your status: If you may be an “accidental American,” confirm your citizenship and obligations early to avoid surprises.
• Plan ahead if considering renunciation: Gather financial records, understand potential tax consequences (such as exit taxes), and prepare for long wait times at consulates.

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