Update: US Considering Renunciation Fee Reduction, But No News on Changes

The United States is considering a significant reduction in the costs for expatriates to renounce their American citizenship. While many feel compelled to retain their citizenship due to the exorbitant costs, a new proposal from the State Department offers hope for a drastic reduction from $2,350 to just $450. What does this potential change mean for the thousands of Americans living abroad?

The United States is contemplating substantially reducing the costs of renouncing American citizenship for Americans living abroad. Some claim that they are effectively forced to retain their citizenship due to the high costs.

According to a proposal from the State Department, the reduction would lower the costs from the current $2,350 (€2,230) to $450 (€429). Americans Overseas shared this news in 2023. Here is an update.

Americans Overseas assists many people daily with information about American tax filings, obtaining an SSN, issues surrounding renouncing American citizenship, and other related topics. It is our duty to keep you informed about the latest developments.

We collaborate with international foundations, lobby groups, and authorities to provide you with the most up-to-date information. Unfortunately, we must inform you that there is currently no news regarding the reduction in the costs for renouncing American citizenship.

Federal Register

As stated in the Federal Register of the United States, this reduction is still a “Proposed Rule”. To date, no changes have been announced.

What does this mean?

We cannot and will not give advice on renouncing American citizenship, as it is a very personal decision. However, we can share what others have experienced, both positively and negatively. Please visit our knowledge center for more information.

The difference between $2,350 and $450 is significant. Unfortunately, there is still no indication of any change. It is unclear when or if the new regulation will take effect.

As mentioned earlier, we will keep you updated and do our best to gather and share more information.

More information on renunciation costs for Americans overseas?

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

When we first heard about the Netherlands-America tax treaty around 2013, we felt disbelief (this can’t be true), anger (why is this allowed), fear (will I get fines or problems), and panic (what should I do).

It is (unfortunately) true that there is a U.S. tax obligation for Dutch citizens who acquired American nationality by birth. There was no information available from the local government, the consulate referred us to the IRS, and the IRS was impenetrable.

Therefore, we started this initiative to help people with accurate information, prevent unnecessary panic, and offer help free of charge. If desired and needed, we have a network of affordable professionals (accountants) who can assist you with your U.S. tax obligations.

Do you have questions about the tax obligations for accidental Americans and the reduction of the Renunciation Fee? Please get in touch with Americans Overseas.

Contact us for more information