THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
Americans who renounce their US citizenship are subject to a charge, currently of $2,350. This may be about to be reduced.
Widely regarded as a form of punitive tax, technically the charge is not a tax to expatriate. Instead it is a fee to issue the ‘Certificate Of Loss Of Nationality’ (CLN). After pressure from members of the US public and groups that represent Americans living overseas, the US government announced that it would consider reducing the fee from from $2,350 to a more reasonable$450 and started the process to reduce the fee. In October 2023 a Notice of Proposed Rule Change was announced, asking for interested parties to submit comments to the Department. A rule was published in Spring 2024, pushing the process forward.
Today (August 24, 2024) the Association of Americans Resident Overseas (AARO) posted on Twitter / X that the State Department has announced the proposed fee reduction will be adopted in September.
Many US citizens considering renunciation do so because of the onerous tax regime that overseas American are subject to. However taking this step is consequential and also irreversible - you would lose the right to live in the United States in future without immigration controls, be unable to vote in US elections, and lose protection from US embassies and consulates abroad.
If you are still interested in the repercussions of renunciation, this article in The American magazine may be useful.
