Renouncing US citizenship is a permanent, irrevocable act. It requires appearing in person at a US embassy or consulate abroad, taking an oath of renunciation, and meeting tax compliance requirements.
14 steps across 2 sections
1. Steps Process
- Understand consequences — You permanently lose: right to live/work in US freely, voting rights, consular protection, and US passport. You may need a visa to visit the US.
- Ensure tax compliance — File all US tax returns and FBARs for 5 years. Use Streamlined Filing Procedures if behind.
- Determine if you are a "covered expatriate" — Covered if: net worth exceeds $2 million, average annual net income tax (past 5 years) exceeds $206,000 (2025)/$211,000 (2026), or cannot certify 5-yea...
- Schedule consular appointment — Contact a US embassy/consulate abroad. Two appointments required.
- First appointment: counseling — Officer explains consequences, confirms voluntariness, provides forms.
- Second appointment: oath — Sign oath of renunciation. Pay fee ($2,350 before April 13, 2026; $450 after).
- Receive Certificate of Loss of Nationality (CLN) — Processing takes weeks to months.
- File final tax return — File Form 1040 through renunciation date and Form 8854. Calculate exit tax if covered expatriate.
2. Key Details
- Fee: $2,350 (current); $450 (effective April 13, 2026)
- Exit tax: Applies to covered expatriates on unrealized gains above $866,000-$910,000 exclusion at 23.8%
- FEIE alternative: $130,000 exclusion (2025) may eliminate tax burden without renouncing
- Foreign Tax Credit may eliminate double taxation in high-tax countries
- Social Security: Can still receive after renouncing (may face withholding)
- Reed Amendment: May be denied US entry if renunciation was tax-motivated
Common Mistakes
- Not being current on tax returns before renouncing
- Not understanding exit tax implications
- Renouncing without citizenship/residency elsewhere
- Assuming renunciation can be reversed (it cannot)
- Not considering FEIE/FTC alternatives
Pro Tips
- Consult both a US tax professional and immigration attorney before proceeding
- The fee reduction to $450 (April 2026) is significant if timing is flexible
- Ensure solid legal residency in another country before renouncing
- Keep copies of all documents and your CLN permanently