State Department reduces fee to renounce US citizenship by 80% - Telemundo Sacramento

Key Takeaways

• It has been reported that the U.S. Department of State reduced the fee to renounce U.S. citizenship by roughly 80%, from about $2,350 to around $470.
• Renunciation must be done in person before a consular officer at a U.S. embassy or consulate outside the United States and results in a Certificate of Loss of Nationality (CLN).
• Renouncing citizens still face IRS (Internal Revenue Service) obligations — including Form 8854 and possible expatriation or "exit" tax if they meet certain wealth or compliance thresholds.
• The cut could lower the financial barrier and lead to more people, including Spanish-speaking communities, considering renunciation — but legal and tax consequences are significant and irreversible.
• Applicants should verify current fees and procedures on the official Department of State website and consult a tax or immigration attorney before acting.

What changed

It has been reported that the Department of State implemented a steep reduction in the administrative fee for renunciation of U.S. citizenship — a statutory consular charge paid at the appointment where a person formally gives up citizenship. Historically, the renunciation fee rose from about $450 to $2,350 in 2014 amid litigation and policy debate; the current reported figure would represent a return to a much lower cost. These reported numbers should be confirmed on the official Department of State pages and with the specific U.S. consulate handling your case because initial news reports may be preliminary or incomplete.

Legal and tax consequences

Renunciation is a legal act with long-term effects. The process requires an in-person oath or statement before a consular officer outside the U.S., after which the Department of State may issue a Certificate of Loss of Nationality (CLN). Beyond the consular step, the IRS requires departing citizens to file Form 8854 (Initial and Annual Expatriation Statement) to certify tax compliance. Individuals deemed "covered expatriates" by IRS rules — based on income, net worth, or failure to certify five years of tax compliance — can be subject to the expatriation or "exit" tax on unrealized gains. These tax rules are complex and can impose large liabilities even if the administrative filing fee is lower.

What this means for people now

For U.S. citizens, including many dual nationals in Hispanic communities, a lower fee may remove one immediate financial obstacle to renouncing citizenship, but it does not lessen legal or fiscal risks. If you are considering renunciation: (1) confirm the current fee, appointment requirements, and local procedures with the Department of State and the specific consulate; (2) consult a tax attorney or CPA experienced in expatriation about Form 8854 and potential exit-tax exposure; and (3) understand that renunciation is generally irreversible and can affect travel, work, inheritance, and social benefits. For non-citizens and visa applicants, this change does not alter visa categories or immigration benefits, but it may indirectly affect families and communities where renunciation decisions are rising.

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