U.S. Citizenship Renunciation Fee Slashed by State Department
WASHINGTON – The U.S. State Department has significantly lowered the fee for Americans wishing to renounce their citizenship, reducing it by approximately 80% to $450, effective Friday. The move, initially announced in 2023, addresses long-standing concerns about the financial burden placed on individuals seeking to relinquish their U.S. passports.
Previously set at $2,350, the fee now returns to the level it was in 2010, when the government first implemented a charge for renouncing citizenship. The State Department explained the reduction aims to ease the financial strain on those pursuing a Certificate of Loss of Nationality – a document issued after a formal renunciation process before a U.S. diplomatic or consular officer abroad.
The decision follows years of advocacy from groups representing Americans living overseas, some of whom have challenged the fee’s constitutionality. Fabien Lehagre, president of the Association of Accidental Americans, welcomed the change, stating it “acknowledges the necessity of making this fundamental right accessible to all.”
The number of Americans renouncing their citizenship has fluctuated over the past decade. Applications rose sharply in the early 2010s, climbing from 956 in 2010 to 3,436 in 2014, according to the State Department. While figures haven’t been recently updated, the department estimates roughly 4,661 people apply for a Certificate of Loss of Nationality each year.
The higher fee, implemented in 2015, was partly intended to offset administrative costs as more Americans sought to renounce, spurred by stricter U.S. tax reporting requirements for expatriates, including those related to the Foreign Account Tax Compliance Act (FATCA).
Despite the reduction, the State Department noted the $450 fee remains below the actual cost of processing these requests. Lowering the fee is projected to reduce annual federal collections by approximately $8.9 million, funds which are deposited into the U.S. Treasury and do not directly support consular operations.
Renouncing U.S. citizenship is a multi-step process requiring applicants to appear in person at a U.S. embassy or consulate abroad, verbally and in writing confirm their understanding of the consequences, and take a formal oath of renunciation. The State Department then reviews and approves the request before issuing the Certificate of Loss of Nationality.
According to the Associated Press, at least 8,755 Americans paid the full $2,350 fee to renounce their citizenship after the State Department announced plans to lower it in 2023.