US cuts fee to renounce citizenship by more than 80%

The United States will sharply reduce the fee for citizens who want to formally renounce their American nationality. According to a notice in the Federal Register, the government’s official journal, the consular fee will fall from $2,350 to $450 starting April 13.

The move reverses a fee increase introduced in 2015 and restores the charge to the level set when the fee was first introduced in 2010. The change comes after authorities reviewed concerns raised by Americans living abroad about tax-related issues.

The notice said the decision considered “the not insignificant anecdotal evidence regarding tax-related difficulties many U.S. nationals residing abroad encounter.” Many Americans overseas have argued that the tax system creates financial and administrative pressure.


The Association of Accidental Americans (AAA), a non-profit organisation based in Paris, welcomed the decision. The group has campaigned for years on behalf of people who hold US citizenship but have limited ties to the country.

AAA founder and president Fabien Lehagre said the fee cut followed legal action and advocacy by the group. “This fee reduction is a concrete first victory,” he said in a statement on social media.

The United States taxes its citizens based on nationality rather than place of residence. This means Americans living abroad must still report their income to the US government.

Under laws such as the Foreign Account Tax Compliance Act (FATCA), US citizens must declare details of foreign bank accounts when filing annual tax returns. Advocacy groups say these reporting rules make tax compliance difficult for many Americans overseas and can also create problems when they try to open bank accounts in other countries.