What Happens When You Renounce US Citizenship: A Complete Guide to Relinquishing Your U.S. Nationality
The decision to renounce US citizenship is a serious and irrevocable legal act that requires careful consideration, detailed planning, and a full understanding of the financial, personal, and legal consequences involved.
This guide is designed to help high-net-worth individuals, globally mobile professionals, and dual nationals understand the complete process of renouncing or relinquishing citizenship, the requirements involved, and what life looks like after you take the oath of renunciation.
What Does It Mean to Renounce Your US Citizenship?
To renounce your US citizenship means to voluntarily and formally surrender your nationality of the United States before a consular officer at a US embassy or consulate abroad. It is a permanent decision governed by the Immigration and Nationality Act and cannot be reversed except in rare circumstances involving fraud or duress.
Renouncing citizenship requires a deliberate statement of intent to relinquish U.S. nationality and an understanding that you will no longer hold the rights or obligations of an American citizen.
This legal act differs from losing citizenship involuntarily. When you renounce citizenship, you are making a conscious choice—often influenced by complex US tax filing obligations, the desire to simplify global mobility, or alignment with a new country of citizenship.
The process is formal, irreversible, and documented through the issuance of a Certificate of Loss of Nationality by the Department of State.
Unlike informal expatriation, renouncing citizenship requires appearing in person at a US embassy or consulate, completing official paperwork, and paying the renunciation fee. You will also be required to take the oath of renunciation in front of a consular officer of the United States, affirming your intent to renounce citizenship and relinquish all associated benefits.
Relinquishing US citizenship after securing an EU passport requires careful planning and understanding of Different types of citizenship. While Italian residency offers a pathway to EU citizenship, alternatives like Turkish residency, Antiguan and Barbudan residency, and Vanuatu residency provide strategic options for those seeking tax optimization and global mobility before formally renouncing US ties.
Why Do People Choose to Renounce Their US Citizenship?
Many individuals considering renouncing their citizenship cite the unique burden of citizenship-based taxation. The United States is one of only two countries in the world that taxes citizens on worldwide income regardless of where they live. For those living abroad, this means filing a US tax return annually, even if no tax is owed.
The complexity and cost of US tax compliance can become overwhelming, especially for individuals holding dual citizenship or residing permanently outside the country.
Others choose to renounce their US citizenship due to challenges related to opening foreign bank accounts, running international businesses, or holding certain government or professional roles abroad that prohibit American citizenship. Additionally, some families seek to simplify estate planning or reduce exposure to the Foreign Account Tax Compliance Act (FATCA) reporting requirements.
The decision to renounce is also personal. Some individuals feel a stronger connection to their new country and wish to formalise that commitment by giving up citizenship in the United States. Whatever the reason, it is essential to consult with legal and tax advisors before proceeding.
What Are the Legal Requirements to Renounce US Citizenship?
In order to renounce your US citizenship legally, you must meet several key requirements. First, you must be at least 18 to renounce citizenship and possess the mental capacity to understand the gravity of the decision. Minors and individuals deemed unable to comprehend the consequences cannot renounce.
Second, you must appear in person at a United States embassy or consulate in a foreign country.
Renunciation cannot be completed within the United States itself. During your appointment, you will meet with a consular officer, complete the necessary forms (including Form DS-4079 and DS-4080), and take the oath of renunciation.
Third, you must already hold or be in the process of acquiring citizenship in another country. While technically it is possible to become stateless, US officials strongly discourage this. A stateless person has no legal nationality and faces severe limitations on travel, work, banking, and legal protections. Most individuals who renounce their US citizenship do so only after securing an alternative passport, such as an EU passport or Israeli citizenship, depending on their heritage or residency.
What Is the Process to Renounce Your US Citizenship?
Renouncing citizenship requires several formal steps. It begins with scheduling an appointment at the nearest US embassy or consulate. Wait times vary, and some locations may require several months to secure a slot. Once your appointment is confirmed, you'll need to prepare documentation, including your US passport, birth certificate, and any evidence of your intent to relinquish citizenship.
At the embassy or consulate, you will meet with a consular officer who will explain the consequences of renouncing U.S. nationality. You will complete Form DS-4079 (Request for Determination of Possible Loss of United States Citizenship), Form DS-4080 (Oath of Renunciation), and Form DS-4081 (Statement of Understanding). These documents collectively establish your intent to relinquish U.S. citizenship and confirm you understand the finality of your decision.
After reviewing the paperwork and confirming your intent, you will take the oath of renunciation. This is a solemn declaration, made under oath, that you renounce all allegiance to the United States and relinquish your rights as a US citizen. Following the ceremony, the consular officer will forward your case to the Department of State for final approval.
Once approved, you will receive your Certificate of Loss of Nationality, the official document proving you are no longer considered a US citizen. This certificate is essential for updating records with foreign governments, financial institutions, and tax authorities.
How Much Does It Cost to Renounce US Citizenship?
The cost to renounce US citizenship includes a non-refundable renunciation fee of $2,350, which must be paid at the time of your appointment. This is one of the highest fees in the world for such a procedure and was increased significantly in recent years to reflect the administrative costs involved.
Beyond the renunciation fee, there are additional expenses you must consider. These include legal and tax advisory fees, potential exit tax obligations, and the costs associated with obtaining or maintaining citizenship in another country. If you are a covered expatriate—defined as someone with significant assets or income—you may be subject to a US exit tax on unrealised capital gains and other assets.
Tax compliance is not optional. Even after you renounce citizenship, you must file a US tax return for the year of expatriation and remain compliant with all prior filing obligations. Failure to do so can result in penalties and complications, including denial of future entry to the United States under the visa waiver program.
What Happens When You Renounce Your US Citizenship?
Once you renounce your US citizenship, the consequences are immediate and permanent. You are no longer entitled to live, work, or vote in the United States. You cannot hold a US passport, and if you wish to travel to the United States, you will need to apply for a US visa or use the visa waiver program if you hold a qualifying passport.
Your loss of U.S. nationality also affects your family. Children born after your renunciation will not automatically acquire American citizenship through you. You also lose consular protections abroad, meaning the US government is no longer obligated to assist you in emergencies while traveling.
The change also impacts your legal and financial standing. You must notify banks, investment firms, and government agencies of your change in status. If you still have US-based assets, they may be subject to estate or withholding taxes under different rules than those applied to US citizens.
Can You Return to the United States After Renouncing?
Yes, you can return to the United States after renunciation, but not as a citizen. Depending on your new nationality, you may be eligible to travel under the visa waiver program, which allows stays of up to 90 days for tourism or business without a visa. If you hold a passport from a country not eligible for visa-free travel, you will need to apply for a US visa through the embassy or consulate of your country of citizenship.
If you wish to live or work in the US again, you must go through the standard immigration process like any other foreign national. This includes applying for employment-based or family-based visas and, if desired, eventual permanent residency. Renouncing citizenship does not automatically bar you from immigrating back to the United States, but you will not receive preferential treatment.
It's important to note that renouncing citizenship may affect your ability to sponsor family members for green cards or citizenship. Former US citizens are no longer eligible to petition for relatives under family reunification programs.
What Is the Certificate of Loss of Nationality and Why Does It Matter?
The Certificate of Loss of Nationality (CLN) is the official document issued by the Department of State confirming that you have relinquished U.S. citizenship. This certificate serves as legal proof that you are no longer a US citizen and is essential for updating your status with foreign governments, financial institutions, and tax authorities.
Your CLN will include your name, date of birth, the date your loss of nationality became effective, and the legal basis under the Immigration and Nationality Act. You should keep the original in a secure location and make certified copies for administrative purposes.
Financial institutions, particularly those subject to FATCA reporting requirements, will often request your CLN to update your tax residency status. Without it, you may face difficulties closing US accounts or demonstrating non-citizen status to foreign banks. The CLN is also required if you seek to formalise your new nationality with your adopted country's immigration authorities.
Are There Alternatives to Renouncing Your US Citizenship?
If you're feeling burdened by the obligations of being a US citizen but are uncertain about renunciation, there are alternatives worth exploring. One option is to become tax-compliant through programs like the Streamlined Filing Compliance Procedures, which can help individuals catch up on overdue US tax returns without facing severe penalties.
Another alternative is to obtain a second passport through citizenship by investment or ancestry, allowing you greater global mobility without giving up your US nationality. Many individuals find that holding dual citizenship offers flexibility, even if US tax obligations remain.
It's also worth reviewing whether your concerns stem from misunderstandings about tax treaties, foreign earned income exclusions, or other provisions that reduce the actual tax burden. A qualified tax advisor can clarify your obligations and help you make an informed decision about whether renouncing citizenship is truly necessary.
What Are the Tax Implications of Renouncing U.S. Citizenship?
The tax consequences of renouncing U.S. citizenship can be significant. If you meet the criteria of a "covered expatriate," you may be subject to an exit tax on the unrealised appreciation of your worldwide assets, as if you sold everything the day before expatriation. This applies if your net worth exceeds $2 million, your average annual US tax liability over the prior five years exceeds a specified threshold, or you fail to certify tax compliance for the previous five years.
Even if you are not a covered expatriate, you must file Form 8854 (Initial and Annual Expatriation Statement) along with your final US tax return. This form details your assets, income, and tax compliance history and confirms your intent to relinquish citizenship. Failure to file can result in penalties and continued tax liability.
Additionally, certain retirement accounts, pensions, and deferred compensation may trigger immediate tax consequences upon expatriation. It is essential to work closely with a cross-border tax advisor to model the financial impact before proceeding with renunciation.
How Long Does the Renunciation Process Take?
The timeline to renounce your citizenship can vary significantly depending on the US embassy or consulate you contact. Some locations have wait times of several months for an initial appointment, particularly in high-demand regions. Once your appointment is completed and you take the oath, the Department of State typically takes several weeks to several months to process your case and issue your Certificate of Loss of Nationality.
In total, the process from first contact to final approval can take anywhere from six months to over a year. During this time, you remain a US citizen and are still subject to all tax and legal obligations, including filing annual returns and reporting foreign accounts.
Planning ahead is critical. If you are considering renouncing, begin the process well in advance of any financial deadlines or life events that may be affected by your citizenship status.
Key Takeaways: What You Need to Know Before You Renounce
- Renouncing US citizenship is a permanent, irreversible legal decision that must be made voluntarily and with full understanding of the consequences.
- You must appear in person at a US embassy or consulate abroad and take the oath of renunciation before a consular officer.
- The renunciation fee is $2,350, and additional legal, tax, and compliance costs can be substantial.
- You may be subject to an exit tax if you meet the definition of a covered expatriate under US tax law.
- You must hold or obtain citizenship in another country to avoid becoming a stateless person.
- The Certificate of Loss of Nationality is your official proof that you are no longer a US citizen and is required for updating records worldwide.
- You can still travel to the United States, but you will need a visa or must qualify under the visa waiver program.
- Tax compliance is mandatory even after renunciation, and failure to file can result in penalties and travel restrictions.
At Marlow Bray, we understand that the decision to renounce your US citizenship is deeply personal and often complex. Our team provides strategic guidance on global mobility, second citizenship planning, and wealth protection to help you navigate this life-changing choice with confidence and clarity. Please see our contact us page for more information and to schedule a confidential consultation.
