Skip to content

Renouncing US citizenship is possible as an American abroad, though not recommended. You’ll need to be tax compliant for five years, sign an oath, pay a large exit fee, and more.

Want to Renounce your US Citizenship?

While renouncing US citizenship is possible, it’s not recommended. If you give up your citizenship, finding a job in the US will be difficult, and you may lose the opportunity to pass your citizenship on to your children who could gain US tax benefits. Also, as we have seen when the pandemic affects the entire world and countries’ borders, US citizenship may prove to be especially useful.

The US Citizenship laws and policies have certain requirements in order for you to renounce responsibly.

All US expats must do four things for renouncing US citizenship:

  • Have to be tax compliant for five years (no skipping filing and paying taxes!)
  • Appear in person before a US consular or diplomatic officer (US Embassy or Consulate)
  • Sign an oath of renunciation in person
  • Pay a $2,350 exit fee

Here is more information from our blog Relief Procedures for Certain Former Citizens:

Keep in mind that relieving your US citizenship for tax purposes can negatively impact your ability to travel within the US. For starters, you will have no residence in the United States. Then if you believe you will want to work in the US again or may need to visit people there in the future, your loss of nationality with the country may not be a recommended idea.

Many expats still keep US citizenship in order to pass it on to their children in the future. This allows them to may have access to the US job market when the time comes. Additionally, if a child has US citizenship through their parent, they can get a driver’s license, work and live easily in the States.

Furthermore, all US children with valid SSN under the age of 17 may enable US expats to get up to $1,400 in refundable tax dollars per year. You can read more about the Additional Child Tax Credit here.

Learn more about renunciation: Relief Procedures for Certain Former Citizens.

Share Post

Posted in . Tags:

expat tax guide intro illustration

Expat Tax Guide

Enjoy our ultimate expat guide that will help you get and stay tax compliant!

Search Tax Guide

Tax Guide Topics

You may also like

2021 Stimulus Checks for Americans Abroad

The first US stimulus checks for Americans abroad have been sent out in March 2020. Then, in 2021 a second check was released in January, and the third round happened…

Unfiled Tax Returns

Penalties for Not Filing Penalties can get serious if you are an American living abroad, and have unfiled tax returns – failing to file on time. For US expats it’s…

Self-Employment Taxes

Self-Employment Taxes If it is certain you work for yourself and are in control of the services you perform, then you are self-employed and income you receive from this specific…

Retiree Support for Americans Abroad

Retired or Planning to Retire? If you are planning to retire, you need to know that Americans, both in the US and abroad can gain retiree support benefits from the…

FATCA and Foreign Bank Account Information

Every foreign bank account you open as an American abroad means you are connected to the FATCA law. This law allows the US Department of Treasury to access your bank…

Save Even More Money with US Taxes

If you have a family, you can save money with US taxes through the child tax credit and foreign housing exclusion. The child tax credit allows you to get refundable…

Only our best expat tax tips to your inbox.

Thousands of users in over 170 countries.

See why people from around the world love us.

Featured In

The leading, and most affordable, tax filing platform for American expats.

Yahoo! Finance

Winning Choice

Best Tax Software for Expatriates in 2021

Scroll To Top