Renouncing U.S. citizenship is a serious and personal decision – often taken for reasons related to taxes, dual residency, or personal values. While the process is legally straightforward, it involves multiple steps, government filings, and long-term implications. In this guide, we break down the procedural aspects of formally giving up U.S. citizenship, and what individuals should keep in mind along the way.
Step 1: Understand the Implications
Before beginning the renunciation process, it is vital to understand the consequences:
- Loss of U.S. nationality: You will no longer have the right to reside, work, or vote in the U.S.
- Tax consequences: You may be subject to the U.S. Exit Tax if you meet certain asset, income, or compliance thresholds.
- Irreversible action: Renunciation is almost always irrevocable, and reapplying for U.S. citizenship later is extremely difficult.
Step 2: Schedule an Appointment with a U.S. Embassy or Consulate
Renunciation must be done in person at a U.S. embassy or consulate outside the United States. Consular officers are responsible for conducting the renunciation interview and ensuring that the decision is voluntary and informed.
Expect a wait time – some embassies have backlogs or limited availability.
Step 3: Prepare Your Documentation
The following documents are typically required:
- Proof of U.S. citizenship (e.g., U.S. passport, birth certificate)
- Second citizenship documentation, if applicable (you cannot be stateless)
- Completed Form DS-4079 (Request for Determination of Possible Loss of U.S. Citizenship)
- Valid government-issued ID
- Payment of the renunciation fee (currently $2,350)
Optional: bring supporting documents such as tax compliance history or legal name change documents.
Note: The U.S. government has announced plans to reduce this fee to $450, but the reduction has not yet been implemented.
Step 4: Attend the In-Person Renunciation Appointment
During your consular visit, you will:
- Be interviewed by a consular officer to confirm your intent and understanding
- Complete and sign Form DS-4080 (Oath of Renunciation)
- Review and sign Form DS-4081 (Statement of Understanding)
You must affirm under oath that your renunciation is voluntary and intentional.
Step 5: Wait for Certificate of Loss of Nationality (CLN)
Following your interview, the embassy or consulate will forward your case to the U.S. Department of State for review. If approved, you will receive your Certificate of Loss of Nationality (CLN)—typically within 4–6 months, although it can take longer.
The effective date of your renunciation is the date you took the oath, not the date you receive your CLN.
Step 6: File Final U.S. Tax Returns
Renouncing citizenship does not automatically end your tax obligations. You must:
- File a final tax return using Form 1040 and check the expatriation box
- File Form 8854 (Initial and Annual Expatriation Statement) to certify tax compliance for the past 5 years
- Determine if you are a covered expatriate and owe exit tax
Failing to meet these requirements can trigger ongoing tax obligations and penalties.
Key Considerations
Have a second nationality: renouncing without another citizenship could render you stateless.
Plan ahead for taxes: exit tax rules are complex and may lead to significant liabilities.
Keep a record of your CLN and all filings: you may need them for future legal, financial, or immigration matters.
Consult with legal and tax advisors: especially if you have significant assets or are unsure of your compliance status.
Final Thoughts
Renouncing U.S. citizenship is a significant legal and financial decision. While the process itself is relatively structured, the tax and legal consequences can be complex. Taking a thoughtful, well-advised approach can ensure that you navigate the transition with clarity and compliance.
The information in this blog post is for general informational purposes only and does not constitute professional tax advice. We strongly recommend consulting a qualified tax professional before making any decisions. US Expat Tax Advisor is not liable for any actions taken based on this content.
If you would like more information or want to schedule a one-on-one consultancy call, please get in touch using our contact form.
