Thousands of Americans have decided to renounce their US citizenship after settling in other countries. The recent reduction in the fee for this procedure, from $2,350 to $450, could encourage even more US citizens living abroad to take this step.
Many Americans settled in Europe decided to renounce their US citizenship. Photo: Magnific.com
Thousands of Americans have decided to renounce their US citizenship for political, fiscal or even personal reasons.
New Zealand, preferred by the United States
Erin Klatt (34), an American resident in New Zealand since 2016, renounced her US citizenship after obtaining New Zealand citizenship, shows CNN Travel, in an article published by Terry Ward. Dissatisfied with the political direction of the United States and the tax obligations imposed on Americans living abroad, she argues that officially breaking away from her homeland in 2026 was only natural.
Earlier this year, shortly before the U.S. State Department cut the fee for renouncing his U.S. citizenship by about 80 percent, Klatt paid $2,350, what the procedure cost at the time, and took the oath to renounce his U.S. citizenship.
Erin Klatt had obtained an essential skills work visa, which allowed her to stay longer in this country. It was also here that she met her English husband, who lived and worked in New Zealand. The two became New Zealand citizens in May 2025. That's when Klatt decided it was time to give up his American citizenship.
“I never felt very patriotic or connected to this country,” Klatt said, according to CNN.
Thousands of Americans renounce their citizenship every year
Data on Americans renouncing citizenship is difficult to determine accurately, the publication notes, because the State Department does not publish statistics and IRS reports can be incomplete.
According to Americans Overseas, 4,889 people were registered in 2025, the highest number since 2020, when 6,705 cases were reported. The organization estimates that the number of quits could rise by 15 percent this year amid increasing requests, and says the real figure could be higher than official reports indicate.
According to CNN, renouncing US citizenship is a cumbersome bureaucratic process: it involves filling out forms, contacting the embassy or consulate, a waiting period of up to six to nine months, and taking an oath in person before a consular official.
Erin Klatt began the process in August 2025 and officially renounced her citizenship in March 2026 at the US Consulate in Auckland.
“I'm very happy with my decision. I don't regret anything. From time to time, I even celebrate the fact that I'm no longer one of them”says the young woman.
Financial calculations
Many Americans renounce their citizenship for financial, not political, reasons. The United States is among the few countries that require citizens to declare income earned anywhere in the world, even if they live and work in another state. This does not necessarily mean that they pay taxes twice, as they can benefit from exemptions or deductions from taxes paid in their country of residence. However, the procedures can be complicated and expensive.
The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 to combat tax evasion. It did not introduce taxation of income earned abroad, but tightened controls on accounts and financial assets held in other countries. Some US taxpayers are required to report these assets to the US tax authorities, and banks and other financial institutions outside the US are required to report information about certain US customer accounts.
According to CNN, so-called “accidental Americans” who acquired citizenship through birth or an American parent, even though they may never have lived in the US, are also affected. For some of them, the bureaucratic obligations and costs of tax advice become burdensome enough to consider renouncing their citizenship.
Why can't Romanians go to the USA without a visa? American experts: In the case of Romania, the expansion of the visa exemption program should be a priority
The dilemma of Americans in Italy
Caroline Chirichella, 37, an American living in Italy who holds dual citizenship, is considering renouncing her US citizenship for reasons of identity, not politics or money. She says that her life is now in Italy, where she lives with her husband and children, but that dual citizenship causes her a state of uncertainty: she feels too American for Italy and too Italian for the United States.
“Honestly speaking, my life is now in Italy. I no longer have family ties in the United States. My children were born in Italy and my husband is Italian. I am grateful for all the opportunities that America has given me. But I feel that when you have dual citizenship, there is this state of uncertainty that is not talked about: you are too American to be in Italy and too Italian to be in the United States.” Chirichella said, as quoted by CNN.
Chirichella hopes that keeping only one passport will help clarify her sense of belonging.
Renouncing citizenship is complicated
Renouncing US citizenship is a complicated process that requires updating your tax returns for the past five years and, in some cases, additional fees and rules. The problems particularly affect “accidental Americans”: people who acquired citizenship through birth or an American parent, although they lived almost exclusively in Europe.
According to the publication, because of the FATCA law, some European banks avoid offering them accounts, mortgages or life insurance, in order not to risk sanctions from the American authorities. Lowering the fee for relinquishing citizenship could prompt more people to start the process.
Jennifer Sontag (53), an American living in Sicily, says she wants to make the move because her life is unfolding in Italy, but admits that parting with her American identity also causes her sadness, as she feels she will lose part of her identity.
“It's part of my identity. It's who I am, isn't it? I'll never be fully Italian. I've lived here for five years. I'm learning the language, I'm learning the culture, but I still don't have those fundamental experiences that make me Italian“, she reported, according to CNN.
How the Romanians conquered America in the 1900s. “The villages of Transylvania are emptying, and across the ocean a new Romanian life begins”
Between advantages and disadvantages
Many people don't look closely enough at what renouncing citizenship entails, said Brad Bernstein, president and managing partner of the New York law firm Spar & Bernstein, which specializes in immigration and personal injury litigation.
American citizenship offers important advantages, he said, including great freedom of travel and the ability to enter many countries without a visa.
“Once you renounce, you are no longer a US citizen. You are treated the same as any other foreign national. If you want to come back to the United States in the future, even just to visit, you will need a visa, and getting one is never guaranteed. Some people get approved, some don't.” he told CNN via email.
People often underestimate the consequences of renouncing citizenship and may end up regretting the decision later, the lawyer said. He added that such a step should not be taken based on short-term thinking or because of minor financial issues.
Renouncing US citizenship should not be seen as a simple way to save money, as it can mean the permanent loss of the right to live and work in the United States.
The decision also has a deeply personal component: for some, it means assuming another identity and detaching from the old national belonging. Caroline Chirichella says she won't take that step until she's absolutely sure, because citizenship can't be easily regained after renunciation.
