To renounce US citizenship is one of the most significant decisions an American can make, carrying lasting legal, financial, and personal consequences.

While some choose to give up citizenship to reduce worldwide tax obligations, others do so for lifestyle, residency, or dual nationality opportunities abroad.

This guide explains the meaning, costs, benefits, and risks of renouncing US citizenship, helping you understand the implications before making a permanent choice.

What does it mean to renounce U.S. citizenship?

To renounce U.S. citizenship means voluntarily giving up all rights and responsibilities associated with being an American citizen. This is a formal, legally binding act that takes place before a U.S. diplomatic or consular officer at an embassy or consulate abroad. The process includes signing an Oath of Renunciation and submitting the required forms under the Immigration and Nationality Act (INA) Section 349.

Once approved by the U.S. Department of State, the individual is issued a Certificate of Loss of Nationality (CLN). This document is the official record confirming that U.S. citizenship has been relinquished. Renouncing U.S. citizenship meaning, therefore, is more than just giving up a passport. It permanently severs your legal, financial, and political ties to the United States.

Why do people renounce U.S. citizenship?

There are many acceptable reasons for renouncing U.S. citizenship, and they vary depending on personal, financial, and political circumstances. Some of the most common include:

  • Tax obligations: United States citizens are taxed on worldwide income, even when living abroad. For many, especially those with foreign assets, this creates a heavy compliance burden and may trigger the exit tax when renouncing. As a retirement-related interview by the Global Intelligence Unit (GIU) with Doris Speer, President of AARO (Association of Americans Resident Overseas) uncovered, “The only way to escape [punitive U.S. tax liability] is to renounce U.S. citizenship; this is why renunciations have spiked in recent years.”
  • Dual nationality benefits: Some individuals want to prioritize another nationality that offers easier travel, residency rights, or tax advantages. In some cases, U.S. citizenship complicates dual citizenship arrangements.
  • Lifestyle and relocation: United States citizens abroad may find that giving up U.S. citizenship simplifies residency, financial planning, and inheritance rules in their adopted foreign country.
  • Political or personal reasons: In today’s climate, some individuals renounce as a matter of political protest, personal identity, or disagreement with U.S. policies. While less common than financial motives, political considerations remain a real factor behind renunciation decisions. A recent GIU report 0n “The Power of Global Wealth” revealed one in ten American expats intended to renounce their citizenship following the 2024 presidential election. The primary reasons cited included political dissatisfaction, concerns over social policies, and the financial burden of U.S. tax obligations.

Ultimately, renouncing U.S. citizenship is a personal choice shaped by a mix of legal, economic, and emotional motivations.

Relinquish vs. Renounce U.S. Citizenship

Low angle shot of Statue of Liberty in New York City - renouncing U.S. citizenship

Under the Immigration and Nationality Act (INA), there are two main ways an American can lose citizenship: to relinquish citizenship or to renounce citizenship:

  • Relinquishment occurs when a U.S. citizen performs a potentially expatriating act with the clear intent to relinquish citizenship (in other words, give it up). Examples include serving in a foreign government, joining a foreign military engaged against the U.S., or voluntarily naturalizing in a foreign country while intending to lose United States nationality. In these cases, the individual’s intent is central, and they must later demonstrate this to the U.S. Department of State.
  • Renunciation, by contrast, is the most unequivocal way to give up U.S. nationality and acquire a foreign nationality. It requires appearing in person before a U.S. diplomatic or consular officer abroad and signing an Oath of Renunciation. Once approved, the individual is issued a Certificate of Loss of Nationality (CLN).

The key difference is that relinquish vs. renounce U.S. citizenship comes down to intent and process: relinquishment can happen through certain actions, while renunciation is a deliberate, formal declaration.

Process to Renounce U.S. Citizenship

Eligibility and requirements

To begin the renouncing U.S. citizenship process, you must:

  • Be at least 18 years old (minors generally cannot renounce).
  • Have full mental capacity to understand the consequences.
  • Hold a foreign nationality, or accept the risk of becoming a stateless person.
  • Be willing to be tax compliant with outstanding obligations and legal matters before the renunciation is approved.

The U.S. Department of State emphasizes that it must be an intentional and voluntary action.

Where to renounce

Renunciation cannot be done inside the United States. Instead, you must appear in person at a U.S. Embassy or Consulate abroad. Appointments are often limited, and in many countries, there are long waiting lists. During your visit, a U.S. consular officer will conduct interviews to confirm your understanding of the consequences and your intent to give up citizenship.

Key forms required (DS-4079, DS-4080, DS-4081, DS-4082)

Several forms must be completed and signed during the process:

  • DS-4079: Questionnaire to establish possible loss of U.S. nationality.
  • DS-4080: Oath of Renunciation of the Nationality of the United States.
  • DS-4081: Statement of Understanding, confirming you fully grasp the consequences.
  • DS-4082: Witnesses’ attestation to the oath.

These documents are submitted to the Department of State for review before the renunciation becomes official.

The Oath of Renunciation and Certificate of Loss of Nationality

The most critical step is taking the Oath of Renunciation, a sworn declaration before a consular officer or diplomatic officer. This act formally severs your legal ties to the United States.

Once your case is approved, the State Department issues the Certificate of Loss of Nationality (CLN), which is the only legal proof that you are no longer a U.S. citizen. Without the CLN, you remain a U.S. citizen in the eyes of the law.

How long does it take to renounce U.S. citizenship?

The timeline for renouncing U.S. citizenship can vary, but in most cases it takes three to six months. In some cases it can take up to a year. The process depends on three key factors:

  • Appointment availability: Many U.S. Embassies and Consulates abroad have long waiting lists for renunciation appointments, which can delay the process.
  • Form review and processing: After your interview and signing the required forms, your case is forwarded to the U.S. Department of State in Washington, D.C. for approval.
  • Certificate of Loss of Nationality (CLN): The renunciation is not finalized until the CLN is issued. This review and approval stage can add additional months.

In short, how long does it take to renounce U.S. citizenship depends largely on embassy scheduling and State Department backlogs.

How much does it cost to give up U.S. citizenship?

The cost to give up U.S. citizenship is currently $2,350, one of the highest renunciation fees in the world. This fee is paid at the embassy or consulate when you complete the renouncing U.S. citizenship process.

In addition to the official fee, many individuals may face significant tax-related costs:

  • Exit tax: Certain “covered expatriates” may owe an exit tax based on their worldwide assets. This is calculated as though all assets were sold on the day before expatriation.
  • IRS Form 8854: This form must be filed with the Internal Revenue Service (IRS) to certify tax compliance for the past five years and to determine whether the exit tax applies.
  • Professional fees: Many choose to work with an immigration lawyer or cross-border tax expert to ensure compliance, which can add to the overall expense.

Therefore, the true cost of renouncing U.S. citizenship can go far beyond the filing fee, especially for high-net-worth individuals or those with complex financial assets.

Pros and Cons of Renouncing U.S. Citizenship

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Renouncing U.S. citizenship comes with both advantages and drawbacks, and the decision should not be taken lightly.

  • Tax relief: One of the most common reasons is relief from U.S. worldwide tax liability. Once you renounce, you are no longer required to file annual U.S. tax returns unless you still have U.S.-sourced income.
  • Flexibility abroad: Former United States citizens may enjoy simpler residency, banking, and investment opportunities in their adopted countries.
  • Freedom from reporting obligations: Complex Internal Revenue Service (IRS) reporting rules, such as FATCA requirements for foreign accounts, no longer apply once citizenship is surrendered.
  • Loss of rights: You give up the right to vote in U.S. elections, hold a U.S. passport, and access certain protections from the U.S. government.
  • Re-entry restrictions: Many wonder, if you renounce U.S. citizenship can you still travel to the United States to visit? The answer is yes, but you will need a visa or ESTA authorization, and re-entry is not always guaranteed.
  • Family and emotional impact: Many find the act of giving up nationality deeply personal, with implications for family members still living in the U.S.
  • Financial costs: Between the renunciation fee and potential exit tax, the financial burden can be substantial.

Life After You Renounce U.S. Citizenship

If you renounce U.S. citizenship can you still visit?

Yes, but your entry to the United States is no longer automatic. After renunciation, you must apply for a visa or, if eligible, use the Visa Waiver Program. Approval is not guaranteed, and some individuals may be barred under laws such as the Reed Amendment if they are deemed to have renounced for tax-avoidance purposes.

Social security and other benefits

Renouncing does not mean losing Social Security benefits you earned while a citizen. Payments are generally still made abroad, except in certain restricted countries. However, other U.S. government benefits tied to citizenship, such as federal financial aid or voting rights, are permanently lost.

Owning U.S. assets as a non-resident

You may continue to own property, investments, or businesses in the United States after renunciation. However, you will be treated as a non-resident alien for tax purposes. This means you may face withholding taxes on certain income and must comply with ongoing Internal Revenue Services (IRS) reporting rules.

Dual citizenship and risk of statelessness

Most people renounce only after obtaining dual citizenship, ensuring they retain travel and residency rights. If you renounce without securing citizenship elsewhere, you risk becoming stateless, which can severely limit your ability to travel, work, or access government protection.

Tax Implications and Exit Obligations

Renouncing U.S. citizenship does not automatically eliminate past or current tax liability. Key considerations include:

  • IRS compliance: You must file U.S. tax returns for the five years prior to expatriation, ensuring you are fully tax compliant before submitting your renunciation.
  • Covered expatriate rules: High-net-worth individuals or those who fail to certify tax compliance may be classified as covered expatriates, subject to the U.S. exit tax. This tax liability treats worldwide assets as if sold the day before renunciation, potentially triggering large liabilities.
  • IRS Form 8854: Every expatriate must file this form to declare net worth, income, and compliance status. It determines whether the exit tax applies.
  • Professional guidance: Consulting an immigration lawyer or cross-border tax expert is strongly advised. They can help navigate reporting requirements, avoid unnecessary penalties, and structure assets effectively before expatriation.