Renouncing U.S. Citizenship

If you're questioning whether renouncing U.S. citizenship is right for you, you're not alone. This guide addresses the common concerns we’ve received and will walk you through the reasons for renunciation, the process, and the legal and financial implications. Whether you’re exploring your options or ready to take the next step, this guide will help you make an informed decision.

Guide to Renouncing U.S. Citizenship

Key Decision Points

Taxation

The U.S. is one of the few countries that taxes its citizens on worldwide income, regardless of where they live or earn it. This system can result in double taxation, with individuals required to file U.S. tax returns and pay taxes even if they are already taxed by their country of residence. Renouncing U.S. citizenship allows individuals to stop this tax burden, making it easier to manage their finances without worrying about U.S. tax obligations on income earned abroad.

Estate Planning Considerations

For individuals with significant international assets, U.S. citizenship can present complex estate planning challenges. U.S. citizens are subject to estate and gift taxes on their worldwide assets, which can result in substantial tax exposure—especially when assets are located in jurisdictions with more favorable or no estate tax regimes.

Renouncing U.S. citizenship may offer a strategic benefit in aligning one’s estate plan with the laws of their country of residence. This can simplify cross-border planning, reduce administrative burdens, and potentially limit exposure to U.S. estate tax on non-U.S. assets.

Compliance

Living abroad as a U.S. citizen requires compliance with numerous U.S. government reporting requirements, including FATCA, FBAR filings, and annual U.S. tax returns. Many expatriates find these obligations costly and time-consuming, especially when they have no substantial ties to the U.S. Renouncing citizenship removes these burdens, allowing individuals to focus on their life abroad without having to report financial information to the U.S. government.

Financial Privacy

U.S. citizens are subject to extensive financial reporting requirements, which often means that their private information is shared with U.S. authorities. For individuals who value financial privacy and wish to reduce the government’s oversight, renouncing U.S. citizenship can provide significant relief. This is especially relevant for those with complex international financial interests or business dealings.

The Process of Renouncing U.S. Citizenship

Review each slide for additional information regarding eligibility and steps to renounce U.S. Citizenship. Your case deserves expert attention -- book a legal consultation today!

Eligibility:

Assess Eligibility for Renunciation

Assess Whether You Are a 'Covered Expat'

Steps to renounce U.S. Citizenship:

Gather Documentation
Schedule an Appointment
Attend the Appointment
Take the Oath of Reunification
Pay the Renunciation Fee
Wait for Your Certificate of Loss of Nationality (CLN)
Post-Renunciation Actions

Assess Eligibility for Renunciation

To renounce U.S. citizenship, you must:

Be 18 years or older.
Be capable of understanding the implications of renunciation.
Possess another nationality or have the intention of acquiring another nationality, as statelessness is not permissible.