Le Point: more Americans abroad are giving up their citizenship

More Americans abroad are struggling with the practical consequences of U.S. citizenship. The French news magazine Le Point recently covered this development and spoke with former Americans, dual citizens and Daan Durlacher, co-founder of Americans Overseas. The figures cited by Le Point show that around 4,820 Americans gave up their citizenship in 2024, an increase of 48% compared with the previous year.

Behind these figures are very different personal stories. For some Americans, renunciation is a political or emotional decision. For many Accidental Americans and dual citizens, however, it is mainly practical. They face U.S. tax rules, FATCA obligations, bank questions, filing costs and recurring administrative uncertainty.

For this group, the issue is usually not a rejection of the United States. It is about whether they can live a normal financial life in the country where they actually live.

Why Accidental Americans consider renunciation

Daan Durlacher makes an important distinction between different groups of Americans abroad. For expats who still have clear ties to the United States, giving up U.S. citizenship may sometimes carry a political meaning. For dual citizens, the issue is often different:

“For dual citizens, it is mainly a financial question.”

That distinction matters. Many Accidental Americans were born in the United States but left as babies or children. Their life is entirely outside the U.S. Yet the United States still treats them as U.S. citizens and therefore as U.S. persons.

Esmée, one of the people interviewed, has Dutch nationality and was born in the United States. She left after only a few months. She has never worked in the U.S., but still has to deal with U.S. tax obligations.

“I have no personal connection with the United States. I never really lived there. I see no advantage in keeping that citizenship.”

That frustration is familiar to many Accidental Americans. They do not experience U.S. citizenship as a conscious choice or active identity, but they do experience it as a recurring source of obligations.

U.S. tax obligations do not stop at emigration

The core issue is the U.S. system of citizenship-based taxation. U.S. citizens must generally report their worldwide income to the IRS every year, even if they live and work outside the United States.

This does not always mean that they actually owe U.S. tax. Measures such as the Foreign Tax Credit and the Foreign Earned Income Exclusion can often reduce or prevent double taxation. But the filing obligation remains. Even when little or no tax is due, the forms, deadlines and reporting rules can remain complex.

For many Americans abroad, that is precisely the problem. It is not always the tax itself, but the annual obligation to report everything correctly.

“Even the interest on my Livret A had to be reported”

An example from France shows how far U.S. reporting obligations can reach. Rafaël, who held French, British and American citizenship, did not earn enough to owe U.S. tax. Yet he still had to file.

“Sometimes I had to report absurd things, such as the interest on my Livret A savings account, which is tax-free in France but not in the United States.”

For Americans in Europe, this is recognizable. Financial products that are normal in the country of residence can become complicated under U.S. rules. This can include savings accounts, investment funds, pensions, business structures, joint accounts or assets held in more than one country.

FATCA makes U.S. status visible

In addition to the tax filing obligation, FATCA plays a major role. Foreign financial institutions must identify and report U.S. account holders. As a result, people with a U.S. birthplace or U.S. passport often receive additional questions from their bank.

For Accidental Americans, this can feel unreasonable. They may have lived their entire life in the Netherlands, France, Germany, Belgium or Switzerland, but banks may still treat them as U.S. persons.

Employers or financial institutions may also become more cautious when someone’s U.S. status creates administrative complications. For some dual citizens, U.S. citizenship is therefore experienced less as an advantage and more as a burden.

The renunciation fee has been reduced to $450

The U.S. government has reduced the fee for administrative processing of a Certificate of Loss of Nationality from $2,350 to $450. The change has been effective since April 13, 2026.

That makes the procedure more financially accessible. For Accidental Americans in particular, the old fee was a high barrier, especially because many are seeking to give up a citizenship they never consciously chose or actively used.

However, a lower fee does not make renunciation simple. Anyone considering renunciation still needs to look carefully at previous U.S. tax returns, FBAR obligations, FATCA reporting, possible non-compliance, Form 8854 and potential exit tax consequences.

The lower fee removes one cost, but not the tax complexity.

Accidental Americans renunciation requires tax preparation

Renunciation is sometimes seen as a way to finally end U.S. obligations. In practice, the step requires careful preparation.

Anyone giving up U.S. citizenship should understand the tax consequences. One key issue is whether previous U.S. tax returns were filed correctly and whether the person can certify compliance with U.S. tax obligations for the preceding years.

For Accidental Americans, this is often frustrating. They want to end an administrative connection with the United States, but first need to determine whether those same U.S. obligations have been handled correctly.

More complex situations often lead to renunciation

Americans Overseas has now helped approximately 37,000 people. The group most likely to give up U.S. citizenship often consists of dual citizens and highly educated individuals. Daan Durlacher explains this partly by the fact that they more often have complex tax situations and the financial means to actually go through the process.

That matches what we see in practice. The more complex someone’s financial life becomes, the heavier U.S. reporting obligations can feel. A simple situation may still be manageable. But investments, pensions, entrepreneurship, inheritances, real estate or assets in several countries can quickly make U.S. filing obligations more difficult.

Not everyone has the same reason

Giving up U.S. citizenship does not mean the same thing for everyone. Some Americans experience it as a personal or political break with the United States.

Lily, an American woman now living in Switzerland who also has Belgian citizenship, describes a second passport as a major privilege. For her, giving up U.S. citizenship was less of a tax decision and more of a political and personal break:

“Renouncing my citizenship was a form of rebellion against my country.”

For Accidental Americans, the situation is often different. They usually do not have a strong personal connection with the U.S. and are mainly looking for clarity. The decision is then less about identity or politics, and more about tax obligations, banking and administrative peace of mind.

At the same time, a U.S. passport can still feel like a possible safety net. In a serious crisis, the value of a second nationality may be viewed differently. Daan Durlacher notes that a war or major crisis in Europe would probably reduce the number of renunciations, because people might again see U.S. citizenship as a possible way out.

This shows how personal the decision is. A U.S. passport can be administratively burdensome, but in some circumstances it may also feel valuable.

A final decision

Giving up U.S. citizenship is an important and generally final decision. After renunciation, a person may also need to keep proving that they are no longer a U.S. citizen. The Certificate of Loss of Nationality therefore remains an important document.

Rafaël puts it this way:

“I have to say that I was born in the United States, but that I am no longer American. I have to provide my Certificate of Loss of Nationality. It is a document I will need my whole life.”

Renunciation can bring peace of mind, but it is not a small step. The choice should be considered carefully, both from a tax perspective and a personal one.

Some people continue to have doubts even after the decision. Lily describes that uncertainty as follows:

“Sometimes I fear I have ruined my life by making that choice. But perhaps this was simply the path I had to follow.”

That doubt shows that renunciation is more than an administrative act. It can also touch identity, security, family history and future plans.

Green Card holders can also get stuck

This issue does not only affect U.S. citizens. Green Card holders can also remain subject to U.S. tax obligations after leaving the United States.

Carl-Henrik, a Swedish software developer, moved to the United States in 1999 and later returned to Europe. He could have kept his Green Card, but that would have meant remaining subject to U.S. tax obligations:

“You can leave and keep your Green Card, but then you have to keep paying taxes.”

For him, this became too complicated, partly because he had retirement savings in both the United States and Sweden that had to be reported. He eventually gave up his permanent resident status.

For Green Card holders, this is an important point. Keeping or ending an immigration status can have tax consequences, even when someone no longer actually lives in the United States.

What does this mean for Accidental Americans?

The growing attention around renunciation shows how heavily U.S. obligations can weigh on people who live outside the United States. For Accidental Americans, giving up U.S. citizenship is usually not a political choice. It is often an attempt to resolve a situation created by birth, dual nationality and a tax system that reaches far beyond U.S. borders.

Anyone considering renunciation should first get clarity on questions such as:

• Am I still considered a U.S. citizen or U.S. person by the United States?
• Am I tax compliant for the years before renunciation?
• Do I still need to file U.S. tax returns?
• Do I have FBAR or FATCA obligations?
• Is Form 8854 or exit tax relevant to my situation?
• What would renunciation mean for my banking, pension, assets, family or future travel to the United States?

The reduction of the fee to $450 makes the procedure more accessible. But giving up U.S. citizenship remains a personal, tax and legal decision. A careful choice starts with understanding your U.S. obligations.

Get informed with Americans Overseas

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

When we first learned about the U.S.–Netherlands tax treaty around 2013, we felt disbelief (“this can’t be true”), anger (“how can they do this?”), fear (“will I get fined or have problems?”), and panic (“what should I do?”).

Unfortunately, it is true that there is a U.S. tax obligation for Dutch citizens who acquired American nationality by birth. There was no information from local authorities, the U.S. consulate referred us to the IRS, and the IRS itself was impenetrable.

That is why we started this initiative: to help others with reliable information, to prevent unnecessary panic, and to offer free, no‑obligation assistance. When needed, we can connect you with a network of affordable professionals (accountants) who can help you meet your U.S. tax obligations

Contact us for more information

Source:

• Le Point- États-Unis : « Renoncer à ma nationalité, c’était une forme de rébellion contre mon pays »