- October 2, 2026
- Updated 1:12 am
Increase in Americans Renouncing Citizenship Tied to Tax Laws and Fees
The number of Americans giving up their citizenship, along with long-term green card holders quitting their U.S. tax residency, has surged to the highest level since 2020 over the past year. An analysis of Federal Register data shows 5,790 individuals listed on the U.S. expatriation register in the last four quarters. This list includes those who reported their loss of U.S. citizenship or permanent resident status to the Treasury Department. Greenback Expat Tax Services points out this marks the largest four-quarter total in six years.
The Spike in Numbers
Between April and June, 1,781 names appeared on the register, a 68.5% increase from the same quarter in the previous year. This brought the total for the first half of the year to 3,243, a 38.5% rise from the first half of 2025. The list only records when the Treasury is notified of a status change, not when the change occurs, but yearly data indicates a significant rise over the past decade in those leaving the U.S. permanently.
Reasons Behind the Trend
Historical records analyzed by Greenback show that between 2000 and 2008, fewer than 500 individuals renounced citizenship annually, with an average of 452 names each year. The numbers grew sharply after the 2010 passage of the Foreign Account Tax Compliance Act (FATCA). This law requires foreign financial institutions to report U.S. account holders’ foreign assets, imposing dual taxation on U.S. expatriates living abroad. This situation led to a drastic increase in renunciations.
“190-plus countries agreed to this program, effective in 2014,” said Alexander Marino of Moody’s renunciation law practice, highlighting the international compliance pressure and technological advances tracing U.S. citizens worldwide.
For Americans in low-tax regions like the UAE, this dual taxation is burdensome, while those in high-tax areas like the U.K. face an even heavier financial load. The desire to avoid such taxation appears in the rising expatriation list numbers following FATCA’s implementation, with record figures in 2016 and 2020.
Additional Influences on Renunciations
The recent rise in renunciations has reached such an extent that lawyers specialize in helping people navigate delays at embassies and consulates to renounce unwanted citizenship. Individuals have cited avoiding U.S. taxes on top of those in their home countries and ideological reasons, often related to political climates and leadership changes, for their decisions to renounce.
“With the current state of the country and my opposition to Trump’s policies, I finally decided to renounce,” shared “Alice” to Newsweek, expressing her decision based on political beliefs.
The State Department’s reduction of the renunciation fee by 80% this year may have also fueled the spike. Previously free until 2010, the fee increased to $450, then $2,350 in 2015, making it one of the highest globally. As of April 13, the fee reverted to $450.
Renunciation Process Explained
Americans overseas can formally renounce their citizenship at a U.S. embassy or consulate. The process involves filling out forms, State Department review, and interviews with a diplomatic officer, culminating in an oath of renunciation. The State Department must approve all requests. It cautions that renouncing may result in statelessness and can affect re-entry to the U.S. if perceived as a tax avoidance measure. Tax compliance is often a major factor motivating citizenship renunciation.
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