From Taxes to Trump: Why Americans Are Renouncing Their Citizenship
Nearly 5,000 Americans renounced their citizenship in 2024, up from 2,426 in 2021, primarily due to tax burdens and inheritance complications, with wait times at embassies like London and Edinburgh now exceeding months. The U.S. remains one of two countries enforcing citizenship-based taxation, forcing expats like Scott, a former military veteran, to file annual returns despite living abroad, with fees dropping to $450 this year from $2,350." "article": "Nearly 5,000 Americans renounced their citizenship in 2024, more than double the 2,426 recorded in 2021, according to immigration service provider Boundless. This marks a significant increase from the roughly 200–400 annual renunciations reported before 2009, reflecting growing dissatisfaction with U.S. policies, particularly among expatriates. The process requires completing State Department forms, two interviews (one in person), and an oath of renunciation at a U.S. embassy or consulate abroad. Wait times have surged globally, with long delays reported in Canada, the UK (London and Edinburgh), Australia (Sydney), and Singapore. Lawyer Alexander Marino, who leads Moody’s—the largest renunciation law practice—notes that demand now outstrips capacity, creating bottlenecks worldwide. Taxes are the primary driver for many renouncing. The U.S. imposes citizenship-based taxation, requiring expats to file annual returns regardless of residency. Scott, a 62-year-old former U.S. military veteran now living in Canada, cited tax costs of $3,000–$5,000 annually as a burden. For him, the deciding factor was the potential inheritance tax on his wife’s Canadian property, which would be substantial for a U.S. citizen. The State Department warns renunciation could leave individuals stateless and bars those avoiding taxes. A 2024 fee reduction to $450 from $2,350 (set in 2015) has made the process more accessible, though the complexity remains high. Before 2010, renunciation was free. The surge contrasts sharply with the plight of undocumented migrants in the U.S., many of whom seek citizenship as a path to security. The Trump administration has framed citizenship as a ‘gift,’ yet growing numbers of Americans now view it as an obligation they can no longer bear.
Nearly 5,000 Americans renounced their citizenship in 2024, more than double the 2,426 recorded in 2021, according to immigration service provider Boundless. This marks a significant increase from the roughly 200–400 annual renunciations reported before 2009, reflecting growing dissatisfaction with U.S. policies, particularly among expatriates. The process requires completing State Department forms, two interviews (one in person), and an oath of renunciation at a U.S. embassy or consulate abroad. Wait times have surged globally, with long delays reported in Canada, the UK (London and Edinburgh), Australia (Sydney), and Singapore. Lawyer Alexander Marino, who leads Moody’s—the largest renunciation law practice—notes that demand now outstrips capacity, creating bottlenecks worldwide. Taxes are the primary driver for many renouncing. The U.S. imposes citizenship-based taxation, requiring expats to file annual returns regardless of residency. Scott, a 62-year-old former U.S. military veteran now living in Canada, cited tax costs of $3,000–$5,000 annually as a burden. For him, the deciding factor was the potential inheritance tax on his wife’s Canadian property, which would be substantial for a U.S. citizen. The State Department warns renunciation could leave individuals stateless and bars those avoiding taxes. A 2024 fee reduction to $450 from $2,350 (set in 2015) has made the process more accessible, though the complexity remains high. Before 2010, renunciation was free. The surge contrasts sharply with the plight of undocumented migrants in the U.S., many of whom seek citizenship as a path to security. The Trump administration has framed citizenship as a ‘gift,’ yet growing numbers of Americans now view it as an obligation they can no longer bear.
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