Renouncing US Citizenship

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Introduction
Renounce US Citizenship in 4 Steps
Which Passports can I get easily to Renounce US Citizenship?
How much does it Cost to Renounce U.S. Citizenship?
Relinquishing vs Renouncing Citizenship
Strategies for a Clean Break from U.S. Tax Obligations
Does Renouncing U.S. Citizenship Affect Future Tax Liabilities?
Benefits of Renouncing U.S. Citizenship Globally
Support for Accidental Americans in Renouncing Citizenship
Regaining Renounced Citizenship
How Long Does It Take to Regain U.S. Citizenship After Renouncing It?
Common Renunciation Questions

Renouncing US Citizenship

Curated by

alexrecouso

9 min read

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Renouncing U.S. citizenship is a serious and irrevocable process that requires careful consideration of legal, financial, and personal implications. According to the U.S. Department of State, individuals must voluntarily appear before a U.S. consular officer abroad, complete specific forms, and take an oath of renunciation to formally relinquish their American nationality.

Renounce US Citizenship in 4 Steps

1040abroad.com

The process of renouncing U.S. citizenship involves several critical steps: STEP 1: Secure a Second Passport Before initiating the renunciation process, it is crucial to obtain citizenship in another country. The U.S. government requires this to prevent statelessness, which can result in severe hardships such as difficulties with travel, employment, and accessing basic services.

STEP 2: Complete Form DS-4079 and Additional Required Documents You will need to complete Form DS-4079 (Request for Determination of Possible Loss of United States Nationality) and other necessary documents. These may include Form DS-4080 (Oath/Affirmation of Renunciation of Nationality of United States) and Form DS-4081 (Statement of Understanding Concerning the Consequences and Ramifications of Relinquishment or Renunciation of U.S. Citizenship).

STEP 3: Schedule and Attend Your Citizenship Renunciation Appointment Contact the nearest U.S. embassy or consulate to schedule an appointment for renunciation. You will have two interviews with a consular officer. During these interviews, you'll review the documents you've filled out, discuss the consequences of renunciation, and have the opportunity to ask questions.

Documents you need to Renounce US Citizenship:

Valid U.S. passport
Consular Report of Birth Abroad (if applicable)
Certificate of Naturalization or Citizenship (if applicable)
Completed forms DS-4079, DS-4080, and DS-4081
Proof of other citizenship

Immediately prior to taking the oath of renunciation, you must pay the $2,350 fee.

STEP 4: File your Final Tax Return together with Form 8854 After renouncing, you'll need to file a final U.S. tax return and Form 8854 (Initial and Annual Expatriation Statement) with the IRS. This form is used to certify that you have complied with U.S. tax obligations for the five years preceding your expatriation date. It's important to note that renunciation is irrevocable and cannot be cancelled or set aside except through a successful administrative or judicial appeal.

The entire process, including the Department of State's review and approval of the Certificate of Loss of Nationality, can take several months or more.

Individuals considering renunciation should carefully review the legal requirements and consequences before proceeding. It's advisable to seek legal and tax advice to fully understand the implications of this decision.

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Which Passports can I get easily to Renounce US Citizenship?

When considering renouncing U.S. citizenship, it's crucial to obtain a second passport before initiating the process. However, it's important to note that there is no universally "easy" way to obtain a passport, as citizenship requirements vary significantly between countries. Some options that individuals often consider include:

Citizenship by descent: If you have ancestors from certain countries, you may be eligible for citizenship. Countries like Ireland, Italy, and Poland have relatively generous ancestry-based citizenship programs.
Citizenship by investment: Some countries offer citizenship in exchange for significant investments. Examples include:
- Malta: Requires a combination of donations, real estate investments, and government bonds.
- St. Kitts and Nevis: Offers citizenship for a donation to the Sustainable Growth Fund or a real estate investment.
- Dominica: Provides citizenship for a government fund contribution or real estate investment.
Residency-based naturalization: Many countries offer citizenship after a period of legal residency. For example:
- Portugal: Offers a "Golden Visa" program leading to citizenship after 5 years.
- Canada: Allows citizenship application after 3 years of permanent residency.
Marriage to a foreign national: Some countries offer expedited citizenship to spouses of their citizens.

It's crucial to understand that obtaining citizenship in another country can be a complex, time-consuming, and potentially expensive process. Each country has its own specific requirements, and what might be "easy" for one person could be challenging for another depending on individual circumstances. Before pursuing any citizenship option, it's advisable to:

Research thoroughly and consult with immigration lawyers in the target country.
Ensure you understand all legal and tax implications of dual citizenship.
Consider how the new citizenship might affect your global mobility and rights.

Remember, the U.S. government requires that you have another citizenship before renouncing U.S. citizenship to prevent statelessness

. This requirement is in place to protect individuals from the severe hardships associated with being stateless, such as difficulties with travel, obtaining a passport, renting property, finding employment, and accessing medical services

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How much does it Cost to Renounce U.S. Citizenship?

The process of renouncing U.S. citizenship involves several costs, with the most significant being the renunciation fee. As of 2023, the U.S. State Department charges a non-refundable fee of $2,350 for administrative processing of the renunciation request.

This fee must be paid immediately prior to taking the oath of renunciation at the U.S. embassy or consulate. However, the total cost of renouncing citizenship can be much higher when considering potential tax implications, legal fees for professional advice, and the expenses associated with obtaining a second citizenship. It's crucial to note that renouncing citizenship does not automatically exempt individuals from U.S. tax obligations, and some may be subject to an exit tax depending on their income and net worth.

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Relinquishing vs Renouncing Citizenship

Relinquishing and renouncing U.S. citizenship are two distinct processes with important differences. Relinquishment occurs when a U.S. citizen performs certain expatriating acts with the intention of giving up their citizenship, such as naturalizing in another country or serving in a foreign government. Renunciation, on the other hand, is a formal process where an individual explicitly declares their intention to give up U.S. citizenship before a U.S. consular officer abroad.

While both result in the loss of U.S. nationality, renunciation is considered the most unequivocal way to manifest this intention.

Renunciation requires a deliberate oath-taking process, extensive paperwork, and a $2,350 fee, whereas relinquishment may occur automatically upon performing certain acts, though it still requires approval from the U.S. government to be officially recognized.

3 sources

Strategies for a Clean Break from U.S. Tax Obligations

americanprogress.org

When renouncing U.S. citizenship, achieving a clean break from U.S. tax obligations requires careful planning and execution of several key strategies:

File Form 8854 (Initial and Annual Expatriation Statement) with your final U.S. tax return to certify compliance with U.S. tax obligations for the five years preceding expatriation.
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2. Consider accelerated depreciation and other legal tax-minimization strategies to reduce your final tax liability.
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3. Be aware of the potential exit tax for high-income or high-net-worth individuals, which may apply to unrealized gains on assets.
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4. Optimize compensation and benefits, such as deferring income or accelerating deductions, before renunciation to manage your tax position.
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5. Make strategic gifts to reduce your estate size before renouncing, utilizing the annual gift tax exclusion ($17,000 per recipient in 2023).
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Consult with tax professionals to ensure full compliance and explore all available options for minimizing tax liabilities during the renunciation process.

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Does Renouncing U.S. Citizenship Affect Future Tax Liabilities?

Renouncing U.S. citizenship does impact future tax liabilities, but it does not completely eliminate all tax obligations to the United States. Expatriates should anticipate ongoing U.S. tax filing requirements and potential tax liabilities even after renunciation.

The extent of these obligations depends on various factors, including whether the individual is classified as a "covered expatriate" based on income, net worth, or tax compliance history. Covered expatriates may be subject to an exit tax on unrealized gains of their worldwide assets at the time of renunciation.

Additionally, any U.S.-source income received post-renunciation may still be subject to U.S. taxation. It is crucial for individuals considering renunciation to seek expert tax advice for meticulous planning beforehand to understand and manage their future tax obligations effectively.

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Benefits of Renouncing U.S. Citizenship Globally

Renouncing U.S. citizenship can offer several potential benefits for individuals living abroad or with international interests. One of the primary advantages is escaping the U.S. tax system's worldwide income taxation, which can be particularly burdensome for expatriates.

This move can lead to significant tax savings and simplify financial planning. Additionally, relinquishing citizenship may provide greater privacy and security, as individuals can distance themselves from U.S. surveillance and reporting requirements.

Some may choose to renounce as a form of human rights activism or to align themselves with countries they perceive as more aligned with their values.

However, it's crucial to note that renunciation is an irreversible decision that comes with the loss of U.S. voting rights, government protection abroad, and unrestricted travel to and from the United States.

Careful consideration of personal circumstances and consultation with legal and tax professionals is essential before making this significant decision.

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Support for Accidental Americans in Renouncing Citizenship

The IRS has created a program called the "Relief Procedure for Certain Former Citizens" to assist accidental Americans in renouncing their U.S. citizenship and resolving tax issues. This program allows eligible individuals to file tax returns after renouncing, avoid covered expatriate status, and potentially file without a Social Security Number. If less than $25,000 is owed, payment may not be required.

Additionally, the Streamlined Filing Compliance Procedures offer another option for accidental Americans to become tax compliant.

Support groups like the Accidental Americans Association advocate for changes to the tax system and have even launched lawsuits seeking refunds for high renunciation fees.

As the U.S. State Department recently announced a reduction in the renunciation fee from $2,350 to $450, more accidental Americans may now consider renouncing their citizenship.

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Regaining Renounced Citizenship

Relinquishment of United States nationality

Voluntarily giving up U.S. citizenship or nationality

Renunciation Process

Swearing an oath of renunciation at a U.S. embassy/consulate or at a USCIS office during a state of war

Potentially Expatriating Acts

Naturalization in a foreign country, taking an oath of allegiance to a foreign country, serving in a foreign military or government, committing treason/rebellion

Certificate of Loss of Nationality

Issued by the State Department when an individual affirms their relinquishment of citizenship

Reacquiring U.S. citizenship after renunciation is possible, but it is not a straightforward process. Individuals who have renounced their U.S. citizenship must generally go through the same naturalization process as any other foreign national seeking U.S. citizenship.

This typically involves obtaining lawful permanent resident (LPR) status, meeting residency requirements, and completing the naturalization application. There are no special provisions to make the process easier for former citizens, except in specific cases such as women who lost citizenship under the Expatriation Act of 1907 or individuals who lost citizenship through service in Allied armed forces during World War II.

Some former citizens have reported varying experiences with the process, with some finding it relatively straightforward and others encountering difficulties, particularly in the naturalization phase.

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How Long Does It Take to Regain U.S. Citizenship After Renouncing It?

Regaining U.S. citizenship after renunciation is a lengthy process that typically takes several years. Individuals must first qualify for lawful permanent resident (LPR) status through the same process as any other foreign national, which can take months to years depending on the immigration category.

After obtaining LPR status, they must meet the standard naturalization requirements, including maintaining continuous residence in the U.S. for at least 5 years (or 3 years if married to a U.S. citizen).

The naturalization application process itself can take an additional 6-12 months. Therefore, the total time to regain citizenship after renunciation can range from approximately 4 to 7 years or more, depending on individual circumstances and processing times.

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Common Renunciation Questions

Here are some frequently asked questions about renouncing U.S. citizenship, along with their answers:

Can I renounce my U.S. citizenship by mail?
- No, U.S. citizens cannot effectively renounce their citizenship by mail. Renunciation must be done in person before a U.S. consular officer abroad.
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Do I need to have another citizenship before renouncing?
- Yes, it is strongly recommended to have another citizenship before renouncing U.S. citizenship to avoid becoming stateless, which can result in significant hardships.
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Is renunciation reversible?
- No, renunciation is irrevocable and cannot be cancelled or set aside except through a successful administrative or judicial appeal.
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Will renouncing affect my ability to visit the U.S.?
- Yes, after renouncing, you will need to apply for a visa to enter the United States, just like other non-U.S. citizens.
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Does renouncing eliminate all U.S. tax obligations?
- No, renouncing citizenship may not eliminate all U.S. tax obligations. You may still face tax or military service obligations, and could be subject to prosecution for crimes committed before or after renunciation.
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Can I keep my U.S. passport after renouncing?
- No, you will be required to surrender your U.S. passport when you renounce your citizenship.
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How long does the renunciation process take?
- The process takes several weeks at a minimum and can take longer. It includes multiple appointments and a review by the U.S. Department of State.
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Can I renounce if I'm under 18?
- While not explicitly stated in the provided sources, generally, minors are not considered to have the capacity to make such a significant decision. It's best to consult with the U.S. embassy or a legal professional for specific cases.
Is there a fee for renouncing citizenship?
- Yes, there is a $2,350 fee for processing the renunciation request, which must be paid at the time of the oath.
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Can I live in the U.S. after renouncing my citizenship?
- Generally, no. The U.S. government does not recognize a right to reside in the U.S. for those who have renounced their citizenship, unless they can demonstrate they will reside as a properly documented alien under U.S. law.
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