US slashes fee for Americans to give up citizenship by 80%

The cost for Americans to formally give up their US citizenship has been reduced from $2,350 to $450, following the implementation of a new government rule.

The significant price reduction, which came into effect on Friday, restores the fee to its 2010 level.

Although the change was initially proposed in 2023, it has only now been formally enacted by the State Department.

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The renunciation process involves applicants attending an in-person interview at an embassy, then confirm their intent in writing, and take a formal oath before the State Department conducts a final review.

Officials confirmed that the decision was made to alleviate the financial burden on individuals seeking a Certificate of Loss of Nationality. This document is required for those who formally renounce their status before a diplomatic or consular officer overseas.

Historically, the fee was increased to $2,350 in 2015. This was largely a response to a sharp rise in applications following the introduction of stricter tax reporting regulations for expatriates.

According to government data:

In 2010, only 956 people renounced their citizenship.

By 2014, that number had surged to 3,436.

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Currently, an estimated 4,661 people apply annually.

Despite the reduction, the State Department noted that the $450 charge remains significantly lower than the actual administrative cost of processing each request.

Legal and financial pressures
The move follows years of criticism and legal challenges from advocacy groups. Many “accidental Americans”, that is individuals who acquired citizenship by birth but have lived most of their lives abroad argued that the high costs obstructed a fundamental right.

Fabien Lehagre, president of the Association of Accidental Americans, welcomed the development. In an official statement, he remarked:

“The Association of Accidental Americans welcomes this decision, which acknowledges the necessity of making this fundamental right accessible to all.”

Lehagre further noted that the change is the result of “years of legal advocacy” by the organisation.

While the fee cut is a relief for applicants, it is expected to reduce federal revenue by approximately $8.9 million per year.

These funds are traditionally deposited into the US Treasury rather than being used to fund departmental operations.