THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
Many Americans who live overseas are considering renouncing their US citizenship. They have a variety of reasons. For some, the United States’ unique dual taxation policy is a major factor. Some may have dual citizenship with another country and want to simplify their affairs. Others, so-called ‘accidental Americans’, are US citizens by an accident of birth but have minimal ties, or none, to the United States. Many of these have never lived or worked in the US, some do not speak English, and some were completely unaware of their US nationality until the Foreign Account Tax Compliance Act (FATCA) tax regulations came into force.
The cost of renunciation has been a barrier to some and a burden to others. The consular fee, the administrative charge imposed by the US Department of State for arranging the Certificate of Loss of Nationality (CLN), has been $2,350 since 2014, when FATCA was brought in. Prior to this the fee was $450. And before 2010, the State Department did not charge a fee for renouncing citizenship at all.
The higher fee has proved deeply unpopular and has been regarded as unfair by many. Following lawsuits arguing that the high cost is punitive and unconstitutional, the State Department proposed in October 2023 to reduce it back to $450 but this was delayed.
The State Department has now announced it will reduce the CLN fee back to $450.
Fabien Lehagre, Founder and President of the Association of Accidental Americans (AAA, www.americains-accidentels.fr) welcomed this decision. He said it “acknowledges the necessity of making this fundamental right accessible to all and that the victory is the direct result of six years of relentless legal action and advocacy”.
"As Thomas Jefferson stated in 1779, voluntary renunciation of one's nationality is a natural right inherent to all men. The US administration is not above its own Constitution. This fee reduction is a concrete first victory, but our fight to have the right to renounce recognized as a fundamental constitutional right continues," said Lehagre. He summed up the history of the AAA’s moves to reduce the fees thus:
The Timeline of a Victory
In December 2020, the AAA and 20 Accidental Americans of 10 nationalities filed a complaint before the US District Court for the District of Columbia, challenging for the first time in history the constitutionality of the $2,350 fee. On January 6, 2023, under direct pressure from this lawsuit, the State Department notified the court of its intention to reduce the fee — but never finalized that decision. In June 2025, the AAA sent an official letter to Secretary of State Marco Rubio demanding immediate publication of the rule. In January 2026, the AAA filed a new federal action: since the 2023 announcement, at least 8,755 individuals had paid $2,350, generating more than $20.5 million in unjustified revenue.
FATCA, Double Taxation and Accidental Americans
The State Department acknowledges in this text the difficulties faced by US nationals residing abroad as a result of FATCA: inability to open a bank account, obtain a mortgage, or invest for retirement in their country of residence. These hardships are a direct consequence of Citizenship-Based Taxation (CBT), which subjects Americans abroad to unjust double taxation. Ending this double taxation was a campaign pledge by President Trump, which the AAA calls on him to fulfill without delay.
The Constitutional Battle Continues
A fundamental question remains pending before the US Court of Appeals for the D.C. Circuit (No. 23-5034): is the right to renounce one's nationality a constitutional right that can neither be monetized nor restricted?
Note: If you are considering renouncing your US citizenship you should be aware of the following:
