State Department Significantly Lowers Fee To Renounce U.S. Citizenship

The U.S. Department of State has implemented a significant adjustment to the fee associated with renouncing U.S. citizenship, reducing it from $2,350 to $450. This change, effective April 13, represents an approximately 80 percent decrease and returns the fee to the level initially set in 2010.

The policy shift was formalized through a final rule published in the Federal Register on Friday. According to the rule, the decision to lower the fee was made to “help alleviate the cost burden for those individuals who decide to request CLN services by returning to the below-cost fee that was in place from 2010-2014.”

The department acknowledged public concerns, including difficulties related to tax compliance under the Foreign Account Tax Compliance Act (FATCA), which have prompted some Americans overseas to consider renunciation.

“In lowering the fee from $2,350 to $450, the Department has made a policy determination not to recover its full costs in response to concerns expressed by U.S. citizens residing overseas who seek to renounce their U.S. citizenship, but believe the current fee is prohibitively high or otherwise is unfair,” the department wrote.

“The Department concludes that a fee of $450, although only a fraction of the cost of providing the service, balances the need for the U.S. government to recoup at least some of its costs with the objective of charging a fee that does not deter individuals from seeking CLN services,” the release went on to say.

Historically, the fee for processing a Certificate of Loss of Nationality (CLN) was introduced in 2010 at $450, covering less than 25% of the actual administrative costs to the government. This amount was maintained until 2014, when a surge in renunciation requests led to a cost-based adjustment, increasing the fee to $2,350 in 2015 to reflect the full expenses involved in processing.

Renouncing U.S. citizenship, formally known as relinquishing U.S. nationality under Section 349(a) of the Immigration and Nationality Act (INA), is a voluntary process that results in the permanent loss of U.S. nationality.

It must be done intentionally and cannot occur automatically. The primary method for most individuals is through INA Section 349(a)(5), which involves making a formal renunciation before a U.S. diplomatic or consular officer abroad.

Once approved, the individual loses all rights and privileges associated with U.S. nationality, including the right to live and work in the United States without a visa, vote in U.S. elections, and receive U.S. consular protection abroad. They may still be subject to U.S. tax obligations, including potential exit taxes.

Additionally, former citizens might face restrictions on future U.S. entry, such as being treated as any other foreign national for immigration purposes, and could lose eligibility for certain benefits like Social Security if they do not meet contribution requirements.

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