Cost of renouncing US citizenship may be reduced in September

Americans who choose to renounce their U.S. citizenship currently face a fee of $2,350. Although categorized as a fee for obtaining a Certificate of Loss of Nationality (CLN), many consider it a form of taxation on expatriation. In response to pressure from the public and organizations representing Americans abroad, the U.S. government has announced plans to reduce this fee to a more manageable $450.

In October 2023, the government issued a Notice of Proposed Rule Change, inviting feedback from interested parties. Following this, a rule was published in Spring 2024 to advance the process.

On August 24, 2024, the Association of Americans Resident Overseas (AARO) shared on Twitter/X that the State Department will implement the proposed fee reduction in September.

Many U.S. citizens contemplating renunciation are motivated by the burdensome tax obligations imposed on Americans living overseas. However, it’s essential to recognize that this decision is significant and irreversible. Renouncing citizenship means losing the right to live in the U.S. without immigration restrictions, the ability to vote in elections, and access to protection from U.S. embassies and consulates abroad.

Please let us know if you would like to discuss any of these issues.