The Cost to Renounce US Citizenship in 2025

Introduction
Renouncing US citizenship is one of the most consequential financial decisions an individual can make. For high-net-worth individuals and internationally mobile professionals, it may be a strategic way to regain financial flexibility and simplify cross-border life. However, the process is far from straightforward. It involves government fees, detailed documentation, and potentially significant tax consequences—including an exit tax for those who meet certain criteria.

If you're considering renunciation, this guide breaks down every cost involved—from official fees to the less obvious tax and compliance implications—so you can make an informed decision.

Why Do People Renounce US Citizenship?
While motivations vary, most individuals who give up their US passport do so for a combination of financial, administrative, and personal reasons.

Freedom from Global Taxation
The United States is one of the only countries that taxes citizens on worldwide income, regardless of where they live. For those with global investments, this system can be burdensome.

Complex Tax Compliance
US expats must comply with annual filing obligations like FATCA and FBAR. These reports can be intrusive, complicated, and carry high penalties if mismanaged.

Global Mobility
Some individuals renounce to simplify international travel, avoid visa restrictions in certain countries, or escape US banking restrictions that complicate foreign accounts.

Personal or Political Values
Others cite philosophical reasons—such as personal sovereignty, privacy, or disagreement with US policy—as a motivating factor for renunciation.

How Much Does It Cost to Renounce US Citizenship?

1. Renunciation Fee
The US Department of State charges a flat, non-refundable fee of $2,350. This applies to every applicant, regardless of age or income level.

2. Exit Tax for 'Covered Expatriates'
The exit tax is a critical cost, especially for those with significant assets. You're classified as a "covered expatriate" if you meet any of the following three tests:
 

If you're deemed a covered expatriate, you may owe tax on the assumed sale of all your assets the day before renunciation. The IRS allows an $821,000 exemption on capital gains in 2025. Any unrealized gains above this amount are taxed.

Example Calculation

• Net Worth: $5 million

• Unrealized Gains: $1.5 million

• Exemption: $821,000

• Taxable Gain: $679,000

• Exit Tax Due (at 20%): $135,800

Certain assets like retirement plans, trusts, and stock options may face additional rules or immediate taxation.

3. Final Tax Compliance Costs
Before renouncing, you must prove compliance with all US tax obligations for the past five years. Depending on your situation, this might involve:

• Hiring CPAs and tax attorneys: $10,000–$50,000

• Filing back tax returns or paying penalties for previous errors

4. Other Costs

• Legal and Advisory Services: $5,000–$20,000

• Travel Expenses: You’ll need to attend an in-person appointment at a US embassy or consulate, which may involve international travel and hotel stays.

Step-by-Step Process to Renounce US Citizenship

1. Evaluate and Plan
   Consult tax and legal professionals to understand all consequences—including potential exit tax obligations and travel implications.

2. Ensure Tax Compliance
   File all required tax returns for the past five years. Pay any outstanding taxes, interest, or penalties.

3. Book an Appointment
   Schedule an in-person meeting at a US embassy or consulate abroad.

4. Prepare Documents
   Typical paperwork includes:

• DS-4079 (Questionnaire)

• DS-4080 (Oath of Renunciation)

• DS-4081 (Statement of Understanding)

• Valid US passport and proof of second nationality

1. Attend the Interview
   At your appointment, a US official will review documents, confirm you understand the consequences, and administer the renunciation oath.

2. Pay the Fee
   Submit the $2,350 fee at the time of your interview.

3. Receive Your CLN
   After processing—typically within 6 to 12 months—you’ll receive your Certificate of Loss of Nationality (CLN).

Pros and Cons of Renouncing US Citizenship

Is Renouncing US Citizenship Right for You?
Renunciation isn’t just for the ultra-wealthy. If you’ve built a life abroad, struggle with FATCA or FBAR compliance, or want to optimize wealth planning internationally, it could be the right move. That said, it's irreversible and requires a strong legal and tax foundation to avoid surprises later on.

FAQs About Renouncing US Citizenship

1. How much does it cost to renounce US citizenship?
The renunciation fee is $2,350, but total costs—including tax prep and legal support—can range from $10,000 to $100,000+ depending on your situation.

2. Do I have to pay US taxes after renouncing?
Not after you renounce. But you must be fully tax-compliant for the five years prior to renunciation, and may owe an exit tax if classified as a covered expatriate.

3. Can I visit the US after renouncing?
Yes, but you’ll need to apply for a visa unless you qualify under the Visa Waiver Program.

4. Can I regain US citizenship in the future?
It’s extremely difficult and rarely granted. Renunciation is typically permanent.

5. How long does the renunciation process take?
On average, the process takes 6 to 12 months from your initial embassy appointment to receiving your CLN.

Conclusion
Renouncing US citizenship is not a decision to take lightly. While it can lead to greater financial freedom and simplified global living, it also comes with significant costs, legal complexities, and long-term consequences. From the $2,350 fee to the potential exit tax and advisory costs, careful planning is essential.

At Block3 Finance, we help high-net-worth individuals and internationally mobile families craft thoughtful renunciation strategies. Whether you're looking to secure a second passport, minimize global tax exposure, or plan your financial legacy, our team provides expert guidance every step of the way.

If you have any questions or require further assistance, our team at Block3 Finance can help you.

Please contact us by email at inquiry@block3finance.com or by phone at 1-877-804-1888 to schedule a FREE initial consultation appointment.

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