2025 Guide to the Process, Fees, and What’s Changed
Giving up your US citizenship is a serious legal step—and an expensive one. But for many American expats, it’s the best way to get fully off the US tax radar. If you’re sick of double taxation or just sick of all the forms, knowing the cost involved in renunciation is crucial.
Let’s dissect the actual costs, what was altered with the US renunciation fee decrease, and everything else to look out for along the way.
What Is the Fee Now to Renounce US Citizenship?
As of July 2024, the fee to renounce US citizenship is now $450 compared to $2,350.
Yes, that’s a massive fall—an 80% reduction. The $2,350 fee was decried as punitive and excessive for years. Following legal pressure and public outcry, the US State Department finally reacted by making the fee comparable to other similar services such as relinquishment.
Summary:
| Renunciation Fee (Before) | $2,350 |
| Renunciation Fee (Now) | $450 |
| Effective Date | July 2024 |
What’s Included in the $450 Fee?
The $450 renunciation fee pays for your in-person appointment at a US embassy or consulate, where you’ll legally abandon your citizenship under oath. It also processes your Certificate of Loss of Nationality (CLN)—the official document stating you’re no longer a US citizen.
Note: This does not include any tax filings, exit tax computations, or penalties if you’re behind with the IRS. Those are additional costs you’ll have to address.
Do You Still Have to File Taxes After Renouncing?
Yes—at least once again.
In order to formally renounce, you’re required to be tax compliant for the preceding five years up to your date of renunciation. That includes filing:
- Your last US tax return (Form 1040)
- Form 8854 (Exit Tax Statement)
- Any delinquent returns or FBARs, if you owe
Not doing so could result in severe penalties—even tax-free exit loss if you fail to comply.
Will You Be Owed an Exit Tax?
Perhaps.
The US exit tax is enforced if you qualify under any of these:
- Net value of $2 million+
- Average yearly US tax obligation of $190,000+ (adjusted yearly)
- You can’t certify tax compliance for the last 5 years
When you trigger the exit tax, you can be taxed as if you sold all your assets one day before relinquishing. This covers gains on real estate, investments, and so on.
Where Can You Renounce
You may only renounce at a US consulate or embassy abroad, and appointments are required—these are limited and booked months in advance.
Step-by-Step: How to Renounce US Citizenship
- Become Tax Compliant
File any delinquent returns and put your records in order. - Schedule a Renunciation Appointment
Call the US consulate or embassy where you reside. - Gather Required Documents
- US passport
- Birth certificate
- Social Security number
- Completed DS-4079 and DS-4080 forms
- Show Up for Your In-Person Appointment
Take the oath, sign the forms, and pay the $450 fee. - Wait for Your Certificate of Loss of Nationality (CLN)
This can take weeks to months. - File Your Final Tax Return + Form 8854
This finishes your duties to the IRS.
FAQs: Renouncing US Citizenship
Is renouncing US citizenship permanent?
Yes. It’s irrevocable in almost all situations. Once it’s done, you are no longer a US citizen.
Can I reclaim my US citizenship later?
Very unlikely. You’d need to reapply for naturalization, with no promise of success.
Do I have to pay the $450 fee if I already renounced years ago?
No. The fee is only for those who affirmatively renounce. If you relinquished through some other act (such as service in a foreign military), other rules and fees may be involved.
What if I forfeit when the fee was $2,350—do I get a refund?
No. The decrease in fee is not retroactive.
Do I still receive Social Security after relinquishing?
If you’ve paid into the system, yes. Your status as a citizen doesn’t impact your entitlement to collect benefits based on employment.
Final Thoughts
Renouncing American citizenship now costs $1,900 less than it did a year ago—but the true expenses are on the tax side, not merely the embassy fee. If you’re determined to sever ties with the IRS, get your tax returns in shape and ensure you’re in compliance with all requirements before booking your renunciation.
Having trouble with your expat taxes or planning your renunciation process?
Speak with the professionals at Expat Tax Online —they work specifically with Americans overseas to guide them through this very process.
