The updated regulation, published by the US Department of State in the Federal Register on 13/3, lowers the fee for renouncing US citizenship from 2,350 USD to 450 USD, an over 80% reduction. The agency had announced plans to lower the renunciation fee in 2023 but delayed implementation.
Effective immediately, the new fee reverts to the original cost when the State Department initiated this policy in 2010. The 2,350 USD fee, in place since 2015, was previously justified by the US Department of State as a way to offset administrative costs amid a sharp increase in renunciation requests.
Renouncing US citizenship is a complex, lengthy process. Applicants must repeatedly confirm, both in writing and verbally to a consular officer, their understanding of the decision's consequences before taking the oath of renunciation. The Department of State then reviews and approves the application.
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US passports. Photo: AP |
To receive a "certificate of loss of nationality", US citizens must undergo at least two interviews with a consular officer, a vetting process, and a formal oath ceremony. The entire procedure can take months.
The US Department of State frequently warns that renouncing citizenship can lead to risks such as becoming stateless or requiring a visa to re-enter the US.
The US is one of the few countries that taxes its citizens based on nationality rather than residency. This requires US citizens living abroad to file tax returns with the US government and can lead to difficulties opening bank accounts due to financial reporting regulations for foreign banks. An estimated 9 million US citizens currently reside outside the country.
The 2015 fee increase drew significant opposition from groups representing Americans abroad, including the "Accidental Americans" Association, based in France. This organization advocates for individuals who hold US citizenship primarily by birth but reside outside the US.
The association filed lawsuits challenging the constitutionality of the 2,350 USD fee, arguing that renouncing citizenship should not incur a charge. One of its lawsuits remains pending. Fabien Lehagre, the association's president, views the US Department of State's fee reduction as a result of years of legal advocacy.
Thanh Danh (According to CNN, Guardian, NYT)
