How to Renounce US Citizenship — What You Need to Know

📅 June 3, 2026⏱ 9 min read✍️ CitizenshipByInvestmentPro

Renouncing US citizenship is a serious, irrevocable legal decision with permanent consequences. Every year, thousands of Americans choose to give up their US citizenship, primarily for tax reasons. If you are considering renunciation, understanding the full process, costs, and implications is essential. And securing a second passport before renouncing is not optional — it is absolutely required.

For more on this topic, see our guide for Americans.

Why Americans Renounce

The United States is one of only two countries in the world that taxes its citizens on worldwide income regardless of where they live. For Americans living abroad or with significant international assets, US tax compliance — including FBAR reporting, FATCA obligations, and worldwide income reporting — creates enormous cost and complexity. Renunciation eliminates these obligations permanently.

The Renunciation Process

Renunciation must be done in person at a US embassy or consulate outside the United States. You must appear voluntarily, without coercion, and demonstrate understanding that the act is irrevocable. The current renunciation fee is $2,350. You must complete Form DS-4079 affirming voluntary intent and Form DS-4080 signing the oath of renunciation.

The Exit Tax

Americans who are covered expatriates — typically those with net worth exceeding $2 million or average annual net income tax liability exceeding $190,000 — are subject to an exit tax. The exit tax treats all assets as if sold on the day before expatriation. This can create a significant tax liability and requires careful planning with an international tax attorney well before renunciation.

Secure a Second Passport First

Before renouncing US citizenship, you must hold valid citizenship in another country. Becoming stateless is illegal under international law and the US State Department will not process renunciation without proof of other citizenship. Caribbean CBI programs are the most popular route for Americans planning to renounce, providing a new passport quickly and cost-effectively before the renunciation appointment.