CNN: why more Americans abroad are renouncing U.S. citizenship

According to a recent publication in CNN, more Americans living outside the United States are looking into the process of renouncing U.S. citizenship. The article puts a spotlight on a subject that Americans Overseas deals with every day: the practical consequences of U.S. citizenship for people who live, work and build their lives abroad.

For some, renunciation is connected to identity, politics or a feeling that their future is no longer in the United States. But for many U.S. citizens abroad – especially dual citizens and Accidental Americans – the discussion begins with something more practical: U.S. tax filing, FATCA, banking restrictions and the administrative burden of remaining a U.S. person.

Daan Durlacher, co-founder of Americans Overseas, was interviewed for the article and explains that most people who contact Americans Overseas about renunciation are not making a sudden emotional decision. They are trying to understand what their U.S. status means for their financial life abroad.

A personal decision, but not an isolated one

The article opens with the story of Erin Klatt, an American who moved to New Zealand in 2016. Within a short time, she knew she wanted to build her life there. A decade later, at age 34, she officially renounced her U.S. citizenship.

Her timing was notable. Earlier this year, just before the U.S. State Department reduced the renunciation fee by about 80%, Klatt paid the previous fee of $2,350 and read the oath renouncing her U.S. citizenship. The fee has since been reduced to $450.

Klatt’s story is personal, but it reflects a wider pattern. Many Americans abroad eventually reach a point where they ask whether keeping U.S. citizenship still fits their life outside the United States.

For some, the answer may be yes. For others, the ongoing tax and reporting obligations, combined with the practical effects of FATCA, make U.S. citizenship renunciation something they want to understand more seriously.

Why the numbers are difficult to measure

One of the complications around renunciation is that there is no simple official annual figure showing exactly how many people give up U.S. citizenship.

The U.S. State Department does not publish its own statistics on the number of people who renounce. Instead, the Treasury Department publishes quarterly IRS lists in the Federal Register under the title “Quarterly Publication of Individuals, Who Have Chosen To Expatriate.” The IRS does not provide a separate compiled annual overview.

Americans Overseas follows these quarterly publications and tracks the names that appear. Based on this count, 4,889 people are listed for 2025. That is the highest number since 2020, when the figure rose to 6,705.

At the same time, these lists may not tell the full story.

Daan Durlacher has indicated that he does not see all the names of clients he knows have renounced their U.S. citizenship appearing in the published IRS reports. This suggests that the official lists may be incomplete or that the true number of expatriations is higher than the published figures show.

Americans Overseas is also seeing a clear rise in inquiries. The organization expects a 15% increase in expatriations compared with last year, with numbers likely to remain elevated in the coming years.

At the moment, Americans Overseas is advising roughly 40,000 U.S. citizens, most of them dual citizens, in Europe and elsewhere in the world who are either in the process of renouncing or asking questions about it.

Why Americans abroad start asking questions

For Americans living outside the United States, U.S. citizenship is not only a passport. It can also mean an ongoing U.S. tax filing obligation.

The United States taxes its citizens on their worldwide income, regardless of where they live. This means that a U.S. citizen living permanently in the Netherlands, Germany, France, Italy, New Zealand or another country may still need to file a U.S. tax return every year.

In many cases, there may be little or no U.S. tax to pay because foreign tax credits, exclusions or treaty provisions may apply. But the filing obligation itself often remains.

That distinction is important. Many people who contact Americans Overseas are not necessarily worried about a large U.S. tax bill. They are worried because they do not know whether they should have filed, whether they are compliant, whether they need a Social Security Number or ITIN, whether FBAR applies, and what happens if their bank identifies them as a U.S. person.

According to Daan Durlacher, the main driver for most people Americans Overseas advises is not politics. It is FATCA and the U.S. tax consequences of being a U.S. citizen abroad.

FATCA can turn citizenship into a banking problem

FATCA, the Foreign Account Tax Compliance Act, requires foreign financial institutions to identify and report accounts held by U.S. persons. For many Americans abroad and Accidental Americans, this is where a tax issue becomes a practical banking issue.

A bank may ask whether someone is a U.S. person. It may request a U.S. Tax Identification Number, such as a Social Security Number. In some cases, banks may become reluctant to offer certain financial products to people identified as U.S. persons.

For someone living an ordinary life in Europe, this can affect basic financial matters. Receiving a salary, opening or maintaining a bank account, taking out a mortgage, holding investments, arranging life insurance or saving for retirement can become more complicated.

This is often the moment when people first realize that U.S. citizenship can have consequences in the country where they actually live.

Accidental Americans: U.S. citizenship without a U.S. life

The issue is especially difficult for Accidental Americans.

Accidental Americans are people who are considered U.S. citizens, often without having a meaningful connection to the United States. This can include people who were born in the United States during a temporary stay by their parents and left as children or infants. It can also include people born outside the United States to an American parent who automatically acquired U.S. citizenship.

Many Accidental Americans have never lived or worked in the United States as adults. Some do not speak English, do not have a U.S. passport and do not have a Social Security Number. Some only discover their status when their bank asks them to provide a U.S. Tax Identification Number.

There are estimated to be around 300,000 Accidental Americans in Europe.

For this group, U.S. tax filing and FATCA can feel especially unreasonable. Their financial life may be entirely outside the United States, but they can still be treated as U.S. persons for tax and banking purposes.

How to renounce U.S. citizenship abroad

Renouncing U.S. citizenship abroad is a formal legal process. It is not simply a written statement or an administrative formality.

The process normally involves paperwork and an in-person oath before a consular officer at a U.S. embassy or consulate outside the United States.

Daan Durlacher explains that the first step is usually to contact the U.S. consulate or embassy in the country where you live. After that, you wait. In some cases, it can take six to nine months before you receive a response.

This waiting time is one reason not to leave preparation until the last moment. Before starting the formal process, it is important to understand the tax and legal consequences.

A person must generally already have another citizenship before renouncing U.S. citizenship. Renunciation should not make someone stateless.

Tax compliance comes before renunciation

Before renouncing, U.S. citizens should review their tax position carefully.

As part of the renunciation process, U.S. tax returns for the five years before renunciation generally need to be filed and up to date. Depending on someone’s situation, FBAR reporting may also be relevant.

For people with more complex financial circumstances, additional issues may arise. These can include pensions, investments, business ownership, real estate, trusts, inheritance planning or the covered expatriate rules.

This is why U.S. citizenship renunciation should not be treated as a quick administrative solution. For some people, it may be the right outcome. But the decision should be based on a clear understanding of the consequences.

First understand your situation

For many people, the first question should not be: “How do I renounce?”

The better first question is: “What is my actual U.S. tax position?”

Before deciding whether renouncing U.S. citizenship is necessary or appropriate, it is important to understand:

• whether you are considered a U.S. citizen or U.S. person;
• whether you have a U.S. tax filing obligation;
• whether you need a Social Security Number or ITIN;
• whether FBAR reporting applies to your foreign accounts;
• whether previous years need to be brought into compliance;
• whether FATCA is affecting your bank situation;
• whether renunciation would create tax consequences;
• whether you could be considered a covered expatriate;
• whether other solutions are available.

For some people, renunciation may eventually be the best option. For others, becoming compliant, obtaining the right documentation or understanding the rules may solve the immediate problem.

The right answer depends on the facts.

Renunciation deserves careful reflection

Daan Durlacher understands why people consider renouncing U.S. citizenship. The tax and banking consequences can be real, especially for people who have lived outside the United States for most or all of their lives.

At the same time, he also reminds people that U.S. citizenship still includes the right to vote. That is one of the reasons why he remains a U.S. citizen himself.

For Americans Overseas, this is an important part of the conversation. Renunciation can be a valid choice, but it should be made carefully. It affects your legal status, your tax position, your future ability to live and work in the United States, and your personal connection to the country.

Do you need clarity about your U.S. status?

If you were born in the United States, have an American parent, received a FATCA letter from your bank, or are considering renouncing U.S. citizenship, it is important to understand your situation before making decisions.

Americans Overseas helps U.S. citizens abroad and Accidental Americans with questions about U.S. tax filing, FATCA, FBAR, Social Security Numbers, Streamlined Procedures and renunciation preparation.

Before making a life-changing decision, make sure you know where you stand.

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: CNN Why thousands of Americans are giving up their citizenship