How to renounce US citizenship: the embassy, the $450 fee and the IRS
The fee cut from $2,350 to $450 from 13 April 2026, two interviews and the oath at an embassy abroad, Form 8854, the 2026 exit tax thresholds and life after renunciation.
In short
- Where: in person at a US embassy or consulate abroad, with two interviews and the oath.
- Fee: $450 from 13 April 2026, down from $2,350.
- First a second citizenship, or you become stateless after the oath.
- Tax: Form 8854 and certification of 5 years of compliance.
- Exit tax: with average tax over $211,000 a year or net worth from $2 million, on gains above $910,000.
In detail
You renounce US citizenship in person at a US embassy or consulate abroad: two interviews with a consular officer, the oath of renunciation at the second one, and a Certificate of Loss of Nationality approved in Washington. Since 13 April 2026 the fee is $450, down from $2,350. Two things come before the oath: a second citizenship and a clean record with the IRS for the last 5 years.
Rules and amounts follow the State Department final rule of March 2026, the Code of Federal Regulations and the IRS in 2026.
Why Americans abroad renounce
The United States taxes its citizens wherever they live. An American in Lisbon or Dubai files a US tax return every year, and foreign banks report American clients to the IRS under the Foreign Account Tax Compliance Act. For many, the cost of filing exceeds any US tax due, and some banks abroad turn American clients away.
In its 2026 rule the State Department described the comments it received: Americans abroad reported spending hundreds or thousands of dollars a year on tax professionals, even with no US tax to pay. The fee cut followed, returning to the below-cost $450 that applied from 2010 until November 2015.
Step 1: a second citizenship
An American with no other nationality becomes stateless after the oath, so the second passport comes first. It also decides how you travel, work and bank after renunciation.
- By descent: with a grandparent born on the island of Ireland, you register in the Foreign Births Register.
- By residence: naturalisation after living in the country, as in Portuguese citizenship.
- By investment: Antigua and Barbuda, St Kitts and Nevis and other programmes in Caribbean citizenship by investment.
The US itself places no limit on a second nationality, so the passport can come years before the decision to renounce. How the two work together is in US dual citizenship.
We will help you get a second citizenship before you renounce
Renunciation goes smoothly when the second passport is already in hand. The most common mistakes: booking the embassy appointment without a second citizenship, choosing a country whose passport makes banking or living in the EU hard, and leaving the last 5 years of US tax returns unfiled before the oath. We match a second citizenship to your goals, gather and translate the documents and follow the application through to the passport.
Details and the cost of support are with a manager in the chat.
Step 2: the procedure at the embassy
Renunciation under section 349(a)(5) of the Immigration and Nationality Act takes place before a US diplomatic or consular officer abroad. The officer checks that you are a US national, that you understand the consequences and that the decision is voluntary and intentional.
| Stage | What happens |
|---|---|
| Request | You contact a US embassy or consulate and receive information on the process and its consequences |
| First interview | The officer reviews your case; you complete the questionnaire on loss of nationality, the statement of understanding and the oath form |
| Second interview | You take the oath of renunciation in person and pay the $450 fee |
| Review | The file goes to the Office of American Citizen Services in Washington for a decision |
| Certificate | After approval, the embassy issues the Certificate of Loss of Nationality |
Renunciation is final. A former citizen who wants to return to the US as a resident goes through the immigration system like any other foreigner.
Step 3: the IRS and the exit tax
For tax purposes you stop being a citizen on the date of the oath, provided the Certificate of Loss of Nationality follows. With the final tax return you file Form 8854 and certify that you have met all federal tax obligations for the 5 years before expatriation; the penalty for not filing it is $10,000.
| Covered expatriate test | Threshold for 2026 |
|---|---|
| Average annual net income tax for the last 5 years | more than $211,000 |
| Net worth on the date of expatriation | $2 million or more |
| Certification of 5 years of tax compliance | not made on Form 8854 |
Meeting any one test makes you a covered expatriate. Your worldwide assets are then treated as sold the day before expatriation, and the gain above $910,000 for 2026 is taxed. Below all three thresholds, renunciation carries no exit tax.
After renunciation: travel, income and family
- Travel to the US: you visit as a foreigner, on an electronic travel authorisation if your other passport belongs to a visa waiver country, or on a visa.
- US income: rent, dividends and other income from US sources stay taxable in the US as for any non-resident.
- Children: a child who is already a US citizen keeps citizenship; children born after the oath do not receive it from you.
| Keep US citizenship | Renounce | |
|---|---|---|
| US tax return every year | yes, worldwide income | only on US income |
| Reporting by foreign banks | yes | no |
| Living and working in the US | without limits | with a visa |
| One-off cost | none | $450 and, for covered expatriates, the exit tax |
Americans who move abroad and stay citizens rely on the foreign earned income exclusion, $132,900 for 2026, explained in US taxes for Americans abroad.
Moving with your family?
We will tell you how to apply for everyone at once and work out the timeline.
Checklist before the appointment
- A second passport in hand, valid for travel.
- US tax returns filed for the last 5 years.
- A tax residence and bank account in your new country.
- An appointment at a US embassy or consulate in the country where you live.
- After the certificate: Form 8854 with the final return.
FAQ
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Don’t want to figure this out alone?
We handle the whole process end to end: we check your documents, match a program to your situation and give you honest timelines and costs. Ask your question in the chat: the free consultation starts right here. Legal representation before authorities and courts is handled by Murblz specialists together with locally licensed partners.
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