The United States government has announced a major reduction in the fee for individuals seeking to formally renounce their US citizenship, cutting the cost by more than 80 per cent.
According to a notice published in the Federal Register, consular fees for renouncing citizenship will drop from $2,350 to $450 starting April 13. The change reverses a 2015 increase and restores the fee to the level originally set when it was introduced in 2010.
The notice explained that the decision was made after considering “not insignificant anecdotal evidence” of the tax-related challenges faced by many US nationals living abroad.
The Association of Accidental Americans (AAA), a non-profit organisation based in Paris, welcomed the move, describing it as the direct result of sustained legal action and advocacy.
The group’s founder and president, Fabien Lehagre, described the fee reduction as a significant breakthrough for Americans abroad struggling with tax obligations.
“This fee reduction is a concrete first victory,” Lehagre said in a statement shared on social media.
The United States is one of the few countries that taxes citizens based on nationality rather than residence, a policy that advocacy groups say places heavy tax-reporting burdens on Americans living overseas and can complicate their ability to open bank accounts.
Under laws such as the Foreign Account Tax Compliance Act (FATCA), US citizens must report details of foreign bank accounts as part of their annual tax filings, regardless of where they reside.
