More than a dozen years ago, I wrote a blog when the State Department jacked up the fee to US$ 2,350.

Wowzers! Consular Fees for Processing U.S. Citizenship Renunciations Increased More than 500% (US$2,350 Fee)

As of September 2026, the U.S. Department of State has reduced the U.S. citizenship renunciation fee from $2,350 to $450. Adjusted for inflation since the 2014 increase, $450 today is equivalent to approximately $320 in 2014 dollars — the lowest real-terms cost for renunciation in more than a decade.

This is what the updated government website provides regarding renunciation:

Steps to Take

STEP 1: Review the legal requirements and consequences/ramifications of taking the oath of renunciation of U.S. citizenship.

Please read the information provided by the embassy, consulate, or office providing consular services and available online at the Department of State and Internal Revenue Service links below regarding the legal requirements for taking the oath of renunciation before beginning this process. Loss of U.S. nationality is irrevocable, and you should fully understand the consequences and ramifications before beginning this process.

For questions related to possible U.S. tax implications, please contact the Internal Revenue Service and/or review the Joint Foreign Account Tax Compliance Act (FATCA) FAQ .

For questions related to Social Security Administration (SSA) or other federal benefits, please contact your location.

Department of State and Internal Revenue Service links:

• Renunciation of U.S. Nationality
• Renunciation of U.S. Citizenship by Persons Claiming a Right of Residence in the U.S.
• Advice About Possible Loss of U.S. Citizenship and Dual Nationality
• Advice About Possible Loss of U.S. Citizenship and Seeking Public Office in a Foreign State
• Advice About Possible Loss of U.S. Citizenship and Foreign Military Service
• Expatriation Tax Guidance
• IRS Form 8854 – Initial and Annual Expatriation Information Statement  [NOTE THE COURT IN AROESTE  V.  UNITED  STATES FOUND THE IRS FORM 8854 NOT BINDING –
  • • The Court agrees. In Mann Construction, Inc. v. United States, 27 F.4th 1138 (6th Cir. 2022), the court found that Notice 2007-83 failed to comply with the APA’s notice-and-comment procedure. Similarly here, because Notice 2009-85 has not been subject to a notice-and-comment procedure, it does not comply with the APA and thus is not binding. As such, Aroeste was not required to file Form 8854 with his amended returns.]
      
• Instructions for IRS Form 8854 (PDF 239KB)
• IRS Notice 2009-85 – Guidance for Expatriates Under Section 877A
  • [See, Aroeste v. United States – where IRS Form 8854 is not binding as IRS Notice 2009-85 is invalid.]  

STEP 2: Email your location to initiate the process and receive instructions. Gather and submit scanned copies of the required documents and schedule your first interview.

To schedule an initial interview, which will be conducted by telephone or in-person at the embassy, consulate, or office providing consular services, please send an email to your location.  Canada, Bern, Berlin, Amsterdam, Australia (Sydney and Melbourne), Singapore, Brussels, and Paris provide electronic first interviews

Applicants should personally review all documents and prepare all forms provided by the embassy, consulate, or office providing consular services in accordance with the instructions. DO NOT SIGN ANY FORMS BEFORE YOUR FINAL INTERVIEW.

STEP 3: Schedule and attend the final interview at the embassy, consulate, or office providing consular services with all required original documents and pay the fee.

Schedule your final interview appointment according to embassy, consulate, or office providing consular services instructions.  On the day of your final interview appointment, you must bring all of the original documents you previously submitted by email. You will be asked to reschedule if you do not have the required documents at the time of your final interview appointment.

Your Consular Report of Birth Abroad, and Certificate of Naturalization or Citizenship, if applicable, generally will be retained by the embassy, consulate, or office providing consular services during the remainder of the process and then returned to you. Your U.S. passport also will be retained and, if your Certificate of Loss of Nationality is approved by the Department of State, it will be canceled before it is returned to you upon your request.  If you need to travel to the United States on your U.S. passport after the second interview but before the Certificate of Loss of Nationality has been approved, please so advise the embassy, consulate, or office providing consular services at the second interview.

You will meet with a consular officer for your second interview and you will be given another opportunity to review the documents that you have already filled out (but not signed) Form DS-4079, Questionnaire; Loss of United States Nationality; Attestations prior to signing them and taking the oath of renunciation.

Fee: Immediately after taking the oath of renunciation, you must pay the non-refundable current fee of US $450 for administrative processing of a request for a Certificate of Loss of Nationality. The fee is not waivable, nor is it refundable if your request for a Certificate of Loss of Nationality is denied.

Step 4: Receive the Certificate of Loss of Nationality if approved by the Department of State

The Department of State will review each request for a Certificate of Loss of Nationality to determine whether there is a legal basis to approve it. This step may take several months or more. The embassy, consulate, or office providing consular services may contact you for further information before the Department of State decides your case.  The embassy, consulate, or office providing consular services will email you if and when your request has been approved.  If your request is denied, the embassy, consulate, or office providing consular services will send you an email attaching a denial letter.

NOTE: STEPS 1-4 above outline the process for requesting a CLN based on taking an oath of renunciation before a U.S. diplomatic or consular officer abroad under Immigration and Nationality Act (INA) Section 349(a)(5), 8 USC 1481(a)(5).  For information on the parallel process to request a Certificate of Loss of Nationality (CLN) on the basis of the commission of another potentially expatriating act under INA 349(a)(1)-(4), 8 USC 1481(a)(1)-(4), please contact your location for inquiries.

Fees (Prices in U.S. Dollars)

Living outside the United States does not eliminate your US tax obligations. US citizens and green card holders abroad must file a US tax return every year and may also need to file additional reports on foreign assets and accounts. Here is an overview of the key forms, what they cover, and how they interact.

Table of contents:

Foreign Earned Income Exclusion (FEIE)
Foreign Tax Credits (FTC)
Information Reporting and FBAR
Tax Preparation Software

Foreign Earned Income Exclusion (FEIE)

Is my foreign income automatically exempt from US reporting?

No. A common misconception is that foreign income is exempt because it can be excluded. Foreign earned income is not exempt. You must report it on a US tax return, and you must be a qualifying individual to elect the exclusion.

What types of income qualify for the exclusion on Form 2555?

The exclusion is available only for “earned” income. It cannot be used for passive investment income such as dividends, interest, or capital gains.

Foreign Tax Credits (FTC)

How does a Foreign Tax Credit work?

A Foreign Tax Credit provides a dollar-for-dollar reduction, subject to limitations, of your US federal tax burden for income taxes you paid to another country on income sourced there. It is claimed on Form 1116.

Can I claim both the FEIE and the Foreign Tax Credit?

No. Once you choose to exclude foreign earned income or housing costs, you cannot take a foreign tax credit on that same income. If you do take the credit, your previous choice to exclude that income may be treated as revoked.

Are there different forms for lawful permanent residents (LPRs)?

US citizens and LPRs generally use Form 1040. However, LPRs residing in a country with a US income tax treaty may be eligible to file Form 1040NR as a non-resident.

Information Reporting and FBAR

What is Form 8938?

Form 8938 (Statement of Specified Foreign Financial Assets) is used to report specified foreign financial assets. It often overlaps with FBAR reporting and must be attached to your annual income tax return when filed with the IRS.

Who must file an FBAR (Form 114)?

US citizens and LPRs with a financial interest in or signature authority over foreign accounts must file a Foreign Bank Account Report (FBAR). The definitions of “ownership interest” and “signature authority” are interpreted very broadly under the regulations.

Where is the FBAR filed?

Unlike other tax forms, the FBAR is not filed with the IRS. You must file it electronically with FinCEN (the Financial Crimes Enforcement Network) through the BSA E-Filing System on Form 114.

What are the penalties for FBAR non-compliance?

The statutory penalty for failing to file, or filing late, is $10,000 per failure. If the failure to file was intentional, the penalty can increase to 50% of the account balances.

There are important unintended tax consequences that can befall individuals who have a green card depending upon their factual circumstances:   see, Oops…Did I “Expatriate” and Never Know It: Lawful Permanent Residents Beware! International Tax Journal, CCH Wolters Kluwer, Jan.-Feb. 2014, Vol. 40 Issue 1, p9).

Tax Preparation Software

Can I use standard tax software for these international forms?

Often, no. Most tax preparation software does not support Form 8938 or other forms related to non-US assets. These forms frequently require manual completion using an Adobe Acrobat version of the form.

Read the full analysis here.

When long-term green card holders give up their green card, they face the same exit tax rules as US citizens who renounce citizenship. There is one exception in the law that allows certain dual citizens by birth to avoid covered expatriate status even if they meet the income or asset tests. Long-term green card holders cannot use it. Here is why.

Table of contents:

What makes someone a covered expatriate?
Is there an exception to the income and asset tests?
Who can use this exception?
Why green card holders cannot use it
What this means if you are a long-term green card holder

What makes someone a covered expatriate?

When you give up your green card (or renounce US citizenship), the law determines whether you are a covered expatriate. You are a covered expatriate if you meet any one of three tests: an average annual income tax liability above an inflation-adjusted threshold, a net worth of $2 million or more on the date of expatriation, or a failure to certify 5 years of US tax compliance – where it is commonly certified on IRS Form 8854.

Meeting even one of these three tests makes you a covered expatriate. All three tests apply equally to US citizens who renounce and to long-term lawful permanent residents (LPRs) who give up their green card.

Is there an exception to the income and asset tests?

Yes, for some people. Under IRC Section 877A(g)(1)(B), certain individuals are exempt from the income and asset tests. If this exception applies to you, you can avoid covered expatriate status even if your net worth exceeds $2 million or your income exceeds the threshold. The certification requirement under Section 877(a)(2)(C) still applies to everyone, including those who qualify for this exception.

Who can use this exception?

The exception is narrow. Under the statute, it applies only to an individual who: became a citizen of the United States and a citizen of another country at birth; as of the date of expatriation, continues to be a citizen of and is taxed as a resident of that other country; and has been a US resident for no more than 10 taxable years during the 15-year period ending with the taxable year of expatriation. Only someone who acquired US citizenship automatically at birth, while also holding citizenship of another country from birth, can potentially qualify.

Why green card holders cannot use it

Lawful permanent residents are not US citizens. They hold a green card, which is a grant of permanent resident status, not citizenship. Because the exception in Section 877A(g)(1)(B) applies only to individuals who became US citizens at birth, long-term LPRs cannot satisfy this requirement by definition. The exception is simply not available to them.

What this means if you are a long-term green card holder

A long-term LPR who meets either the $2 million asset test or the income tax liability test will become a covered expatriate, even if they fully satisfy the 5-year certification requirement. Satisfying the certification requirement is necessary for everyone, but for long-term LPRs it is not sufficient on its own. If you also meet the income or asset test, you are a covered expatriate regardless.

The consequences include the mark-to-market exit tax on unrealized gains and the Section 2801 tax on covered gifts and bequests to US persons. These consequences can affect your US family members for decades. Understanding them well before you give up your green card, not after, is the only way to plan for them.

There are important unintended tax consequences that can befall individuals who have a green card depending upon their factual circumstances:   see, Oops…Did I “Expatriate” and Never Know It: Lawful Permanent Residents Beware! International Tax Journal, CCH Wolters Kluwer, Jan.-Feb. 2014, Vol. 40 Issue 1, p9):

This post provides general information only and is not legal advice. Consult an experienced attorney for guidance specific to your situation.

Read the full analysis here.