Severing ties with the United States has become a lengthy and costly process for many Americans living abroad, driven by political disillusionment and policy changes. Margot, who has lived in the UK for 30 years, faced a 14-month wait at the London consulate and had to travel to Ghent, Belgium, to renounce her citizenship. She described the experience as being caught between love for her nation and hatred for its current direction.
Rising Numbers and Costs
In the 2000s, only hundreds of Americans renounced citizenship annually, but since 2014, numbers have climbed into the thousands. This year is expected to match 2020's record of over 6,000, partly due to a reduction in government fees from $2,350 to $450 after a legal battle. However, legal costs remain steep, ranging from $7,000 to $10,000, according to Alexander Marino of Moody's law firm.
Political Motivations
Many renounce for political reasons. Paul, 55, from Helsinki, traveled to Milan for his appointment on his 51st birthday, calling it a "divorce from Uncle Sam." He was motivated by Trump's nomination of Amy Coney Barrett to the Supreme Court in 2020. Joseph, 36, living in Norway, fears the US is becoming a dictatorship and doubts the government will peacefully transfer power. Ella, 66, who left the US for Germany 34 years ago, finally renounced in 2021, believing the US is more likely to start a war than offer a safe haven.
Tax and Legal Complexities
The US is one of only two countries (along with Eritrea) that taxes based on citizenship, not residency. This creates unique burdens, such as taxing US citizens on assets split in divorces with non-citizens. The Foreign Account Tax Compliance Act (FATCA) requires foreign banks to report US clients, making banking difficult for expats. Ella, a research scientist, lost a job offer in Switzerland because no Swiss bank would open an account for her.
Risks of Renunciation
Renouncing can lead to "covered expatriate" status, which carries lifelong tax consequences and potential denial of re-entry to the US. A quarterly federal register publishes names of renunciants, which Marino calls "vindictive." Many interviewees requested anonymity due to these risks. Sinclair, 54, who renounced in Australia, noted that parents cannot renounce on behalf of their children, and a new law automatically registers 18-25 year olds for military draft, causing concern.
Personal Experiences
Experiences at consulates vary. Sinclair faced a "snippy" vice consul, while Mary described her appointment in Halifax as an anticlimax in a shabby office. Michael, 57, found the Amsterdam consulate chaotic, feeling "instantly back in America." Despite the process, few regret renouncing. Michael misses the Steak 'n Shake chain but says, "If I never see America again, I am absolutely fine with that."
