I am considering renouncing my US citizenship

3 min

Are you unsure whether you want to keep your American citizenship?

We are an informative organization and try as much as possible to indicate the advantages and disadvantages of renouncing or not renouncing US citizenship, without giving you advice.

It is a very personal but also important choice, with potentially far-reaching consequences that you may not have thought of in the first instance. Our goal is to provide this information as clearly as possible in an objective way so that you can make the right choice.

Therefore, here are some advantages and disadvantages of renouncing your American citizenship:

If you renounce your US citizenship, what are the possible advantages?

  • Only after you have become compliant (for Renunciation: filed a tax return for at least 5 full tax years), renounced your citizenship (applied for a CLN Certificate of Loss of Nationality), and submitted a final Tax declaration (for the year of cancellation), your (future) tax declaration in America expires. Therefore, only renouncing without having made declarations does not relieve you of your declaration obligations.
  • With the obligation to declare, the obligation to pay any future tax will lapse. (Incidentally, only in 5% of the returns does a tax payment in the US apply)
  • You pass on your CLN Certificate of Loss of Nationality to your bank, thereby proving that you are no longer a US Person and your bank /other financial institution has no reason to pass on your financial bank details to the IRS in the future.

If you renounce your US citizenship, what are the possible disadvantages?

  • The choice to renounce your American citizenship is irreversible, it is a decision for life
  • You are obliged to declare up to and including the year of renouncing, even though you have renounced your citizenship. Renouncing only does not relieve you of your obligation to declare, if you want to renounce and become compliant, the costs are high.
  • After renouncing, you will not be able to give American citizenship to your children born after the cancellation of your renunciation.
  • Free travel on your Dutch passport with an ESATA to America is often no longer possible, in many cases, you must apply for a (valuable) travel visa. The visa may not be granted because you have consciously renounced your citizenship. This makes working, internship, or traveling to family in America more difficult.
  • The renunciation costs amount to $ 2,350 in fees at the consulate
  • Your name is mentioned on a public list in which America publicly reports who has renounced citizenship that year
  • Renouncing American citizenship does not relieve you of compulsory military service. America can still call on you.

If you keep your US citizenship, what are the possible advantages?

  • You can travel freely to America or settle there (business) without a visa
  • You can stay free in America for work/internship or study, without a visa
  • You save the high costs (fees and extra years of tax declarations
  • You are protected by America, and you and your family are protected if there are problems in your country
  • You have voting rights in America

If you keep your US citizenship, what are the possible disadvantages?

  • You have a tax declaration obligation and possibly also a tax payment obligation
  • You cannot use all banking products that your bank or financial institution offers
  • Your bank details are shared annually with the IRS
  • You must travel in and out of America on an American passport

What is the right moment to take action?

There are currently various voluntary disclosure schemes, such as the Streamlined Procedure and the Relief Procedure. Both schemes have as yet no end date, which means that it is not known when these schemes will end.

Are you unsure whether you need to take action now? Do you want to go through your personal situation? If you register via the contact form, we will gladly think about your situation.

Contact us for more information