EenVandaag | Growing Number of Dutch Citizens with U.S. Nationality Want to Renounce It: ‘Glad to Be Rid of It’

More and more Dutch citizens with American nationality are seeking to give it up—not only out of political dissatisfaction but primarily due to the strict and costly tax regulations the U.S. imposes on all its citizens, no matter where they live or work in the world.

According to advocacy organization Americans Overseas, the number of Dutch nationals wanting to renounce their U.S. citizenship has doubled over the past three years.

Unaware of U.S. Tax Obligations

An estimated 42,000 Dutch citizens also hold American nationality – often without realizing it. Because the U.S. taxes based on citizenship rather than residency, these individuals are required to file annual tax returns with the IRS, even if they have never lived or worked in the U.S.

An Unexpected Letter

Ineke Nieman is one of them. She was born in Philadelphia but has lived in the Netherlands since she was six months old. About a year and a half ago, she received a letter from her bank: “ING asked for my American Social Security Number (SSN). But I didn’t have one, and if I couldn’t provide it within two weeks, they would freeze my account and report me to the IRS,” she explained on EenVandaag.

Panic and Confusion

“My first thought was: this doesn’t apply to me. I’ve never lived or worked there. But it turned out to be very real.” According to Nieman, it’s not the U.S. authorities but Dutch banks that are ramping up the pressure. “They’re not allowed to do business with Americans who aren’t tax compliant. The bank protects itself—but I’m left with the problem.”

Swim Certificates as Evidence

To renounce her U.S. citizenship, Ineke first had to catch up on five years of tax returns. That required an American SSN. “Because I’d never had one, I had to prove that I’d been living in the Netherlands since infancy. I had to submit everything—swimming certificates, vaccination records, old rental contracts.” Only then could she go to the U.S. Embassy to officially renounce. The entire process cost her around €6,000. She is now no longer a U.S. citizen. “It was worth the money,” she says. “I’m glad to be rid of it.”

FATCA: A Silent Disaster

The underlying issue is the FATCA legislation, which requires banks worldwide to report American account holders to the IRS. According to Rebecca Lammers of Democrats Abroad, the main problem is a lack of awareness: “People don’t know they’re liable for U.S. taxes, because almost every other country taxes based on residence. Only the U.S. uses citizenship as the basis.”

Cautious Hope for Reform

Former president Donald Trump also raised the issue during his campaign. There are now draft bills in the U.S. Congress aimed at improving the situation for Americans living abroad. But Lammers warns against too much optimism: “Yes, it’s finally on the agenda, and that’s good. But we’re far from a solution.”

Americans Overseas on EenVandaag

Daan Durlacher, co-founder of Americans Overseas, appeared on the program to provide further explanation. His message: “We’re seeing a clear increase in the number of Dutch nationals seeking help to renounce their U.S. citizenship –not out of emotion, but because it’s no longer financially or administratively sustainable.”

According to Durlacher, it’s important to understand that even if legal reforms occur in the U.S., they will mostly benefit people who are already fully compliant—meaning those who have filed their U.S. tax returns correctly for the past five years. “That’s what the U.S. looks at,” he explains. “If you haven’t done that yet, you’ll first have to catch up before renouncing citizenship is even an option. A law change won’t help people still sitting on the sidelines.”

In the broadcast, Durlacher also emphasized that promises by politicians like Donald Trump to eliminate these tax obligations should be taken with a grain of salt. “The proposals currently on the table sound nice, but they don’t solve the core issue. For 95% of people, paying U.S. taxes isn’t the real problem—it’s the obligation to file every year. Only eliminating that requirement will make a real difference.”

That’s why Americans Overseas continues to push for the removal of the filing requirement. In the meantime, their advice to anyone with (possible) dual nationality: don’t sit still. Durlacher says, “Get informed. Because if a change does come, it will only apply to those who have filed for the past five years. Otherwise, it’ll be too late.”

Get informed at Americans Overseas

We, the founders of Americans Overseas, were born in the Netherlands and obtained our American nationality through our (American) mother.

When we heard about the US tax system for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fined or pick up other problems?), and panic (what should I do?). It is (unfortunately) true that there is an additional American tax levy. But there’s no information from the local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.

That’s why we started this initiative to help people from all over the world by providing proper information about the US tax system to avoid unnecessary panic and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your American tax obligations.

Contact us for more information

Source: EenVandaag Growing Number of Dutch Citizens with U.S. Nationality Want to Renounce It: ‘Glad to Be Rid of It’