U.S. Cuts Citizenship Renunciation Fee by 80% — What It Means
Key Takeaways
- It has been reported that the U.S. has reduced the fee to renounce citizenship by roughly 80%, lowering the direct cost of formally giving up U.S. nationality.
- Renunciation is handled by the U.S. Department of State (DOS) at embassies and consulates — not by USCIS (U.S. Citizenship and Immigration Services) — and the legal consequences remain the same.
- The cut removes a major financial barrier but does not change tax rules: covered expatriates may still owe an “exit tax” under IRS rules.
- People considering renunciation should confirm the new fee and effective date with the relevant consulate and seek tax and immigration legal advice before acting.
What changed
It has been reported that the Department of State has slashed the fee for formally renouncing U.S. citizenship by about 80 percent. Renunciation is a formal, voluntary act performed before a U.S. consular officer abroad (or at a domestic office in rare cases) that terminates U.S. nationality. The fee reduction lowers the up‑front financial hurdle for those who choose to pursue that path, but it does not alter the substantive legal effects of renouncing.
Who this affects
The change affects U.S. citizens who wish to give up their nationality — including dual nationals, naturalized citizens, and lifelong U.S. citizens who now live abroad. It may particularly matter for people who have been deterred by the prior high fee from completing renunciation. Advocates have argued the previous price acted as a de facto barrier; the reduction makes the administrative act more affordable but does not change eligibility rules, which require a voluntary and deliberate decision in a consular setting.
Legal and tax consequences
Renunciation remains a serious legal step. Once completed, a person loses the protections and privileges of U.S. citizenship and may face immigration consequences if they later seek to return to the United States. Tax consequences are unchanged: the IRS still applies the expatriation rules (including the potential “exit tax” for “covered expatriates” under Internal Revenue Code section 877A) based on assets, income, and compliance history. In short: the fee is lower, but the downstream legal and financial implications can still be significant.
What applicants should do now
If you are considering renunciation, confirm the new fee and when the change takes effect directly with the U.S. consulate or embassy where you plan to appear. Speak with an immigration attorney for procedural questions and with a tax advisor about potential U.S. tax obligations before you renounce. Lower costs may make the procedure more accessible, but the decision remains irreversible for most practical purposes and carries long‑term consequences for travel, benefits, and tax filings.
Source: Original Article