WASHINGTON (AP) — The State Department has significantly reduced the fee for Americans who wish to formally renounce their U.S. Citizenship, cutting it by approximately 80%.
Fee Reduction Follows Legal Challenges
The department published a final rule in the Federal Register on Friday reducing the cost from $2,350 to $450. This change comes after years of legal battles with groups representing Americans seeking to relinquish their citizenship.
The lowered fee took effect Friday and fulfills a promise made in 2023. The process of renouncing citizenship is described as intensive and lengthy, requiring applicants to repeatedly attest to their understanding of the implications before taking an oath of renunciation, which is then reviewed by the department.
Tax Reporting Requirements Drove Fee Increase
The fee was originally raised from $450 to $2,350 in 2015, reportedly to cover administrative expenses resulting from a surge in renunciations. This increase coincided with new U.S. Tax reporting requirements for American expatriates, which proved unpopular with many.
The France-based Association of Accidental Americans, representing individuals born in the U.S. Who primarily reside abroad, filed lawsuits challenging the fee’s constitutionality. One such lawsuit remains pending, arguing there should be no cost to renounce citizenship.
Fabien Lahagre, president of the Association of Accidental Americans, stated, “The Association of Accidental Americans welcomes this decision, which acknowledges the necessity of making this fundamental right accessible to all. This victory is the direct result of six years of relentless legal action, and advocacy.”
The association reported that at least 8,755 Americans had paid the full $2,350 fee to renounce their citizenship since the 2023 announcement of the planned reduction. The State Department has not released the total number of Americans who have renounced their citizenship.
Frequently Asked Questions
What is required to renounce U.S. Citizenship?
Applicants must repeatedly confirm, in writing and verbally, to a State Department consular officer that they understand the implications of renouncing their citizenship before taking a formal oath of renunciation, which is then reviewed by the department.
Why was the fee for renouncing citizenship increased in 2015?
The fee was raised from $450 to $2,350 in 2015 to cover administrative expenses related to a surge in renunciations, which coincided with new U.S. Tax reporting requirements for American expatriates.
Who is the Association of Accidental Americans?
The Association of Accidental Americans is a France-based group representing people mainly living abroad whose U.S. Citizenship is due purely to their having been born in the United States.
As the fee for renouncing U.S. Citizenship has been reduced, will we see a further increase in the number of Americans choosing to relinquish their citizenship?