Lower fee for renouncing U.S. citizenship now officially confirmed

On March 13, 2026, the U.S. Department of State published a final rule in the Federal Register. This officially confirms the reduction of the fee for the administrative processing of a Certificate of Loss of Nationality (CLN). For Americans abroad who are considering renouncing their U.S. citizenship, this is a relevant development. The fee will be reduced from $2,350 to $450, and the new rule takes effect on April 13, 2026. 

However, the lower fee does not change the fact that procedures, appointment availability, and waiting times can vary greatly from one consulate to another. In practice, renouncing U.S. citizenship is still handled through the local U.S. embassy or consulate, each with its own procedures and appointment system. 

What is changing?

The fee for processing a request for a Certificate of Loss of Nationality will be reduced from:

$2,350 to $450

This fee applies to individuals who formally renounce their U.S. citizenship, or otherwise lose their U.S. nationality under U.S. law, and apply for a Certificate of Loss of Nationality through a U.S. embassy or consulate. 

When does the new fee take effect?

The rule was published on March 13, 2026 and takes effect on April 13, 2026. 

Implementation depends on U.S. embassies and consulates

Although the rule has now been finalized, it is important to stress that Americans Overseas has no role in implementing this measure.

The procedures for renouncing U.S. citizenship are fully managed by the U.S. Department of State and the individual U.S. embassies and consulates. In practice, this means consulates determine:

• when and how many appointments are available
• when the new fee is actually applied
• how the procedure is carried out locally

Everyone is therefore dependent on how the U.S. consulates implement this change. We recommend that members always check directly with their local embassy or consulate which fee applies at the time of their appointment. 

An important and irreversible decision

Renouncing U.S. citizenship is a very significant step and, in principle, an irreversible one. Once citizenship has been renounced and a Certificate of Loss of Nationality has been issued, that decision cannot simply be undone.

Losing U.S. citizenship may have consequences for:

• the right to live and work in the United States
• access to certain social benefits
• travel and immigration rules for future visits to the U.S.
• tax obligations and possible exit tax rules

That is why it is important for anyone considering this step to become properly informed and to carefully weigh the possible consequences before making a final decision.

Read more in our knowledge center article: I am considering renouncing my U.S. citizenship.

Background to the change

The fee reduction was originally proposed in October 2023. After a period of public comments and internal review within the U.S. government, the Department of State has now finalized the rule and amended the Schedule of Fees for Consular Services.

For many Americans abroad, the previous fee of $2,350 had long been seen as a substantial financial barrier. The new fee of $450 therefore represents a significant reduction, although it remains a formal consular procedure. 

Tax returns and tax obligations

Renouncing U.S. citizenship does not automatically mean that all tax obligations end immediately.

Individuals who renounce their citizenship must state that they have been, or will become, fully compliant with their U.S. tax filings for the five years preceding renunciation. In addition, a tax return must also be filed for the year of renunciation.

This is confirmed by filing IRS Form 8854 with the IRS. Depending on income, assets, and prior tax status, someone who renounces may also be subject to the so-called exit tax. Americans Overseas also points out that tax compliance and possible covered expatriate rules can play an important role here.

Because the tax consequences can be complex and differ from person to person, it may be wise to seek professional tax advice through Americans Overseas in advance. 

If you are not fully compliant: the Streamlined Procedure

For some Americans abroad who have not fully complied with their U.S. tax filing obligations, it may be possible to use the Streamlined Foreign Offshore Procedures. This IRS program is intended for taxpayers who failed to file their returns without willful intent (“non-willful”).

Through this procedure, overdue tax returns and reporting obligations can still be submitted so that the taxpayer can become compliant again. Because the conditions and consequences differ by situation, it is advisable to seek advice from a tax specialist before taking further steps. 

Waiting times at U.S. consulates: do not underestimate this

A lower fee does not change the fact that waiting times and procedures at U.S. consulates vary widely. This applies within Europe as well as outside Europe. Anyone considering renunciation and who is not yet up to date with their U.S. tax filings would be wise to seek advice in time.

Without proper preparation, the total cost may end up being higher than just the consular fee. This may include the cost of preparing missing tax returns, possible amnesty or disclosure procedures, and final expatriation documentation.

In addition, there will likely be very few quick renunciation cases in the near future: implementation remains dependent on local consulates, while interest may increase precisely because of this fee reduction. Local implementation may also differ by post. In other words, these lower renunciation costs in 2026 do not automatically mean that the process will become faster or easier.

The Americans Overseas team is generally well informed about waiting times and procedures. Feel free to contact us without obligation if you are considering renunciation and first want to map out your tax and practical position properly. 

FATCA remains an underlying reason for many people

For some people involved, FATCA also plays a role in the background. FATCA requires financial institutions to report information on U.S. account holders, and in the Netherlands this exchange of information with the IRS is continuing for the time being.

Americans Overseas recently also reported on the ruling by the District Court of Gelderland that the Netherlands may continue sharing FATCA data of Accidental Americans with the IRS. 

Americans Overseas continues to monitor developments

Americans Overseas will continue to monitor how this change is implemented by U.S. consulates worldwide and will keep members informed of relevant developments affecting Americans abroad.

The fee reduction is an important development, but it does not resolve all of the practical and tax questions surrounding renunciation of U.S. citizenship. That is precisely why careful preparation remains essential. 

Contact us for more information

Source

Federal Register – U.S. Department of State, Schedule of Fees for Consular Services—Fee for Administrative Processing of Request for Certificate of Loss of Nationality, published on March 13, 2026, effective April 13, 2026.