From Taxes to Trump: Why Americans Are Renouncing Their Citizenship
Summary
In 2024, nearly 5,000 Americans living abroad have given up their U.S. citizenship, up from about 2,400 in 2021. Many renounce citizenship because the U.S. tax system requires them to pay taxes on income earned anywhere in the world, which can be costly and complicated.Key Facts
- About 5,000 people renounced U.S. citizenship in 2024, a significant increase from previous years.
- The U.S. and Eritrea are the only countries that tax their citizens on worldwide income regardless of where they live.
- Renouncing citizenship involves filing forms, interviews at U.S. embassies, and taking an oath.
- The fee to renounce citizenship was lowered in 2024 from $2,350 to $450.
- Long waiting times exist at many embassies worldwide for those renouncing citizenship, including in Canada, the UK, Australia, and Singapore.
- The U.S. government warns that renouncing citizenship can make a person stateless and may block re-entry if done to avoid taxes.
- Some Americans face tax filing costs that can reach $3,000 to $5,000 annually due to citizenship-based taxation.
- The State Department does not release exact annual numbers but the Treasury Department publishes quarterly reports listing expatriates.
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