Introduction to Renunciation of US Citizenship

Overview of Renunciation of US Citizenship

Renouncing US citizenship is a significant personal decision. The renunciation of US citizenship involves a formal legal process to voluntarily and irrevocably give up all the rights, responsibilities, and privileges that come with being an American citizen. Given the irreversible nature of the process, it is important to understand what it entails, why people choose this route, and the legal and practical implications involved.

To renounce US citizenship is an irrevocable action, with only extremely limited exceptions. Renunciation must be done voluntarily, with full understanding of the consequences, and in the presence of a US diplomatic or consular officer at a US Embassy or Consulate outside the United States. Once completed and approved, the individual receives a Certificate of Loss of Nationality (CLN), which formally ends their US citizenship as of the date of the renunciation interview.

Reasons for Renouncing US Citizenship

There is no single reason why individuals choose to renounce their US citizenship. Motivations can be financial, familial, political, or practical. One of the most common reasons is the burden of US tax obligations. The United States taxes its citizens on worldwide income, regardless of where they live. This global taxation system often requires complex financial reporting, and many expatriates find compliance overly burdensome and costly. In such cases, renunciation becomes a way to simplify finances and reduce the risk of penalties. Others feel a stronger connection to another country, particularly if they were born abroad or have spent most of their lives outside the US In such circumstances, renouncing may be viewed as a way of aligning legal status with national identity.

Family considerations also factor into the decision. Some people renounce US citizenship to preserve family unity, especially when spouses or children are citizens of another country and cannot easily obtain US nationality. In some countries, renouncing foreign citizenship may even be required for individuals to hold government jobs or other public sector positions. For others, political or ideological reasons play a role. Disagreements with US government policies or a desire to express dissent can lead someone to formally sever their legal ties with the United States.

Legal Framework

Section 349(a)(5) of the Immigration and Nationality Act (INA) provides the legal foundation for a US citizen’s right to renounce their citizenship. The provision allows a US citizen to voluntarily make a formal renunciation of nationality before a US consular officer in a foreign country and in a manner prescribed by the Secretary of State. US law requires that those wishing to renounce their citizenship must do so in person before a US consular or diplomatic officer while in a foreign country. For renunciation to be approved, the individual must act voluntarily and without coercion, fully understand the consequences of their decision, and clearly intend to relinquish their US citizenship. Once these criteria are met, the Department of State may issue a Certificate of Loss of Nationality, finalizing the renunciation.

Requirements to Renounce US Citizenship

To be eligible to renounce US citizenship, a US citizen must meet several key criteria. First, a US citizens must demonstrate that they understand that if the US Department of State approves the renunciation, it is irrevocable. Age is a factor, but our office has assisted US citizens who were under the age of 18 who were able to demonstrate that they understood the ramifications of renouncing their US citizenship. It is the US citizen who will make the oath of renunciation so a parent or legal guardian cannot renounce a child’s US citizenship. Second, the US Department of State will make it very difficult for someone to renounce their US citizenship if they don’t have another have another nationality or if they are not in the process of obtaining another nationality as it will make the US citizen stateless. Third, the decision must be made voluntarily and without coercion. Fourth, the US citizen must appear in person at a US embassy or consulate outside the United States to complete the process. Lastly, a US citizens must fully understand the consequences of renouncing their US citizenship, including the loss of all rights and privileges associated with being a US citizen, including the right to live and work in the US and the right to access US consular protection abroad.

The Process to Renounce US Citizenship

Renunciation is not a quick or casual procedure. There are usually two interviews, one of which must be in person. It may begin with the individual contacting any US Embassy or Consulate to schedule an appointment to discuss renouncing US citizenship or the US consular post will provide information on renouncing US citizenship via email. If there is an information session prior to the renunciation interview, during this session, the consular officer explains the serious consequences of renunciation and provides the individual with time to reflect on their decision. If the individual chooses to proceed, a second, in-person interview is scheduled.

At the renunciation interview, the individual must sign Form DS-4080, the Oath of Renunciation, and Form DS-4081, the Statement of Understanding, in the presence of a consular officer. These forms confirm that the individual is voluntarily and knowingly renouncing US citizenship. A non-refundable administrative fee of $2,350 USD (as of the date of this blog) is collected at this stage. The consular officer then forwards the completed forms and their notes with an assessment of the case to the Department of State. If approved, a Certificate of Loss of Nationality is issued to the individual.

Timing

The entire process can take several months to a year to complete. Factors affecting the timeline include appointment availability at the relevant US Embassy or Consulate, the individual’s readiness with the required documentation, and the workload of the consular office. After the second interview, the Department of State’s review and approval period typically takes several weeks to a few months, depending on the complexity of the case.

US Tax and Renunciation of US Citizenship

The process of renouncing US citizen does not require that a US citizen demonstrate that they have been filing their US tax returns. In fact, a consular officer will likely not have any expertise with whether a person is up-to-date with their US tax return filings. Therefore, it is advisable for a US citizen to obtain advice from a US tax professional on whether they have met all their US tax filing obligations and confirm whether they will have to pay an exit tax. Our firm does not provide US tax advice although we can refer our clients to US tax professionals if a person need US tax advice.

Impact of Renouncing US Citizenship

Renouncing US citizenship carries serious and wide-reaching consequences. The individual loses all rights and privileges associated with being a US citizen, including the right not to undergo US immigration inspection at the US border or port of entry. In addition, it includes the loss of the automatic right to live and work in the United States, the loss of the right to vote in elections, and eligibility for certain government services such as Social Security and Medicare. The renunciant also forfeits the ability to receive assistance from US Embassies and Consulates and can no longer hold a US passport. Many federal jobs become inaccessible, and the individual loses the ability to sponsor family members for US immigration.

In some cases, while it is very difficult for the US government to prove, those who renounce their US citizenship may be barred from re-entering the United States. Under Section 212(a)(10)(E) of the INA, if the Department of Homeland Security determines that a person’s primary reason for renouncing was to avoid US taxation, that person can be deemed inadmissible to the United States. This could mean being permanently banned from entering the country.

There is also the risk of statelessness. If the individual does not hold another nationality at the time of renunciation, they may become stateless, which can lead to significant hardships. Stateless individuals may face challenges in traveling, obtaining employment, receiving healthcare, owning property, and even getting married or attending school. Without citizenship in any country, their legal status and rights may become severely restricted.

Importantly, renouncing US citizenship does not exempt a person from existing or future legal or financial obligations. Former citizens may still be liable for unpaid US taxes, subject to prosecution for crimes committed while they were citizens or required to fulfil military service obligations. Debts such as child support remain enforceable, and renunciation provides no protection from these responsibilities.

Finally, renunciation is irrevocable. Once a Certificate of Loss of Nationality is issued, the action is final and cannot be reversed except in very limited circumstances through administrative or judicial appeal. The only way to regain US citizenship would be to apply for naturalization, which requires meeting all the standard eligibility criteria like any other foreign national.

Conclusion

Renouncing US citizenship is an irrevocable decision that carries lasting implications. While it results in the loss of certain rights and benefits associated with citizenship, it may be the right decision for individuals whose personal, financial, or professional circumstances align with this choice. Individuals considering renunciation should take the time to understand the process and its consequences to ensure it aligns with their long-term goals.

This is posting is for informational purposes and is not intended as legal advice. If you require further assistance or advice relating to the above, please contact our Principal Lawyer, Janice Flynn at janice@flynnhodkinson.com.

This is posting is for informational purposes and is not intended as legal advice. If you require further assistance or advice relating to the above, If you require further assistance or advice relating to the above, please contact our Principal Lawyer, Janice Flynn at janice@flynnhodkinson.com.