Renounce US Citizenship: Step-by-Step Guide
The first thing is that renouncing your citizenship is a voluntary action. So, obviously, it’s different from losing your identity against your will. However, the road in the end goes to the same destination. When you decide to give up your citizenship, you no longer can have the rights and responsibilities of US citizenship. However, you still have to follow some duties, including paying taxes. In addition, you can also get payments from Social Security, even though you renounced your US citizenship.
Probably, you don’t plan to be stateless voluntarily. So, if you’re in the phase of your life to give up your citizenship, think about the other country from which you’ll have citizenship. Otherwise, you’ll end up stateless. Furthermore, remember that when you keep your US citizenship, even though you get a second one, you can still use some advantages as a US citizen. However, when you leave as a US citizen, depending on your other country, you’ll need to get a visa to return to the US.
In this article, we’ll take a look at the renunciation process for you and guide you through the steps you’ll need to take.
It’s an important and legal process that can change many details about your lifestyle and expectations. So here are some crucial points to keep in mind when you renounce your citizenship as a US citizen:
- If you’ll renounce your citizenship outside of the US, you can visit a US consular or a diplomatic or consular officer in person
- You’ll need to sign an oath for renunciation
- It’s not a free process, so you’ll need to pay the complete fee, which is $2,350.00
When the appointment day comes, you will need to complete some paperwork. Let’s take a look at those forms listed below, and before your appointment, try to familiarize yourself with them.
- Form DS-4079: It’s for the Request for Determination of Possible Loss of United States Citizenship
- Form DS-4080: This one’s for Oath of the Renunciation of the Nationality of the United States
- Form DS-4081: You’ll need this form for Statement for Understanding Concerning the Consequences and Ramifications of Renunciation or Relinquishment of U.S. Nationality
- Besides these, you may also need other forms if the authorities find it necessary to support your Loss of Nationality
The Required Documents to Renounce Your US Citizenship
- Evidence that you hold a US citizenship
- Your US consular report of birth abroad
- Bio-pages of all of your current foreign passports
- Certificates of naturalization that you have from any country
- Certificates of citizenship that you have for any country
- Proof of any name changes if you have
Renounce vs. Lose Your US Citizenship
You have two methods; renouncing or losing your citizenship. They might sound similar but it’s two different ways to end your legal position as a citizen of a country. There are two different intends: freely or involuntarily. It’s normal that different countries have different rules and processes for renouncing or losing citizenship. When it comes to United States, you need to write an oath at any US embassy or consulate in another country. This way, you can renounce your US citizenship.
Specific activities may make you to lose your US citizenship. For instance, it may be running for public office or joining military of a foreign country. So, these actions and renouncing or losing your US citizenship lead to losing your rights and duties you have as a US citizen. Here comes a really important question. Do you have another citizenship? If the answer is no, you will probably require a visa to return to the United States, or as we mentioned above, you’ll become stateless.
Renouncement Requirements: Your Rights and Privileges
Do you want to give up your US citizenship? Then, you need to be aware of the fact that you may need to give up all the rights and benefits you have as a US citizen.
Dual Nationality or Statelessness
- In the case that you don’t hold another nationality, you may become stateless when you renounce your US citizenship.
- The next step of being stateless may make you face many challenges in your life.
- Even though you’ll be a former US citizen, you’ll need to get a visa to enter the US. You can even be ineligible for the Visa Waiver Program.
- If the reason for renouncing US citizenship is tax avoidance, keep in mind that this action can lead to being inadmissible to the US.
Unchangeable Renunciation
Renunciation of US citizenship is a lifetime decision since it’s an irrevocable action to take. However, there’s a statement in the law that mentions an exception. You can apply for canceling renunciation or set aside through the support of a successful administrative review or judicial appeal.
Let’s take a look at another exception. You can be able to reinstate your US citizenship if you renounce it before age 18. In addition, you’re required to inform the Department of State within six months.
After Renouncing U.S. Citizenship: Tax and Military Obligations
It’s really important, and many are facing issues because of this situation. Remember that if you leave your US citizenship, you’ll still have to pay taxes. It means that you have to pay taxes and get social security payments as well. It depends on the money you make and what you own that’s worth value.
Being a US citizen brings an obligation to file your last tax return for the year you end your citizenship. That’s called a “dual-status tax return.” You need Form 8854 here, showing that you’re living abroad and paying your taxes.
There’s another important detail. An exit tax can be described as a one-time tax for the net unrecognized gain of the property in case you sell your property one day before you leave the US. However, it doesn’t mean that you have to pay this tax in any circumstances. You’ll only need to pay this tax when your income or net worth is above a specific amount.
Renunciation for Your Minor Children
Citizenship is a personal status for you as a US citizen, and it doesn’t cover your relatives. So, as a parent, you can’t renounce your minor children’s citizenship. So, it’s expected that minors also demonstrate their intention to renounce citizenship voluntarily with no influence. This also needs to be done by understanding what are the implications of renunciation.
If your children are under 16 years old, they may need more maturity or knowledge to renounce their citizenship. If the children are under 18 years old, they have additional safeguards and careful consideration by the department for renunciation. If it’s not an emergency, minors can wait until they become 18 to renounce their US citizenship.
Renounce or Lose Your U.S. Citizenship: What Happens Next?
As we’ve explained so far, renouncement of citizenship is a serious action with serious consequences. So, it’s normal that there’ll be some outcomes of renounceing or losing your US citizenship. There are also some pros and cons.
- You lose the rights and responsibilities of a US citizen.
Pro: You can have less tax burden as you’ll not pay tax on your worldwide income anymore.
Con: It’s possible that you’ll lose the right to live and work in the United States as well as vote and receive the protection of the US government.
- You’ll need to become a citizen of another country, so be prepared for this and choose one already. If you don’t do this, you may face the risk of becoming stateless.
Pro: You can start benefiting from another country’s citizenship. For example, if you have a citizenship from a European country, then you have visa-free travel opportunity within the EU countries, use the social services.
Con: You can experience severe hardships as a stateless person. For instance, owning a property, working, marrying, receiving medical care, or attending school in the US will become difficult.
- The need to get a visa to make a return to the US or not be eligible for applying for the Visa Waiver Program.
Pro: As you were a citizen of US for your all life until renunciation, you’ll have bonds with the US. If you plan to visit the US for tourism, business, or family reasons, you’ll need a valid visa. However, it depends on the second citizenship you hold. You may be able to visit the US without a visa for a specific period of time.
Con: You may experience trouble getting a visa or being denied entry to the US if you have a criminal record. If you renounced your US citizenship for the tax avoidance means or consideration of a security threat, there may be other reasons for the denial of your visa application.
- An exit tax, a final tax return, and other possible tax obligations may come along with renunciation.
Pro: It’s possible to avoid your future tax liabilities and filing requirements as a US citizen. Instead, you can report your foreign bank accounts or foreign companies.
Con: You may need to pay a one-time tax on your property’s net unrealized gain, submit your dual-status tax return, and pay taxes and social security benefits.
- You can’t give up on your military obligations if you’re a male born after 1960 in the US.
Pro: As a dual citizen of the US obligated to provide military personnel to the U.S., you may still be subject to the U.S. military draft in a national emergency; doesn’t matter if you primarily reside outside the U.S. But it’s not a certain obligation, so it depends on your situation.
Con: If you fail to register with the Selective Service System, it may result in legal consequences, including prosecution and denial of certain benefits.
How to Renounce Your U.S. Citizenship: Steps and the Process
Although this process needs special attention, we’ve compiled a couple of steps for you to follow if you plan to renounce your citizenship.
Step 1: Getting citizenship in another country
It’s the best way to begin this process to get foreign nationality before you renounce your US citizenship. If you pass this step in the first place, it means that you’ll have many difficulties because of becoming stateless.
Step 2: Moving to another country from the US
The only way to renounce your U.S. citizenship is possible when you’re outside the US and at a US embassy or consulate in a foreign country.
Step 3: Contacting the US embassy or consulate
First, you need to make an appointment and prepare your documents to bring with you including your US passport, proof of your other citizenship, and the renunciation fee of $2,350.
Step 4: Appearing in person before a US consular or diplomatic officer
When you’re there, you’ll sign an oath of renunciation and a statement of understanding. This way, you’ll confirm that you’re giving up your U.S. citizenship voluntarily and intentionally and that you understand the consequences of doing so.
Step 5: Receiving a certificate of loss of nationality
The document you’ll receive will prove that you’re no longer a US citizen. When it comes to the waiting time, it may take several weeks or months to process renunciation and get your issued certificate.
Step 6: Settling your tax obligations with the IRS
Even if you renounce your U.S citizenship, you’re still not free from paying taxes totally or from filing tax returns. So, you cannot avoid paying taxes totally. Your income and assets are among the top factors whether you’ll be subject to taxes and social security benefits. A final tax return as a US citizen for the year of renunciation is still necessary to pay, and an exit tax will be taken from you if you meet certain income or net worth thresholds.
Step 7: Adjusting to your new status as a former US citizen
In this step, you’re now no longer a citizen of the US but a former citizen of the US. So, this status makes you lose your rights and responsibilities as a U.S. citizen, including the right to live and work in the U.S.
How to Lose Your U.S. Citizenship
It’s possible to lose one’s US citizenship in specific cases. Here are some:
- If you run a public office in a foreign country
- If you enter military service in a foreign country
- If you apply for foreign nationality and give up your U.S. citizenship
- If you commit an act of treason against the US
The Wrap Up
Moving to another country and exploring what the world offers us is exciting. However, renunciation is a serious topic that requires deep self-determination by considering its outcomes.
Even if you have many reasons to renounce your US citizenship, it’s better to go back to them all and make a decision considering your mental and legal situation.
Frequently Asked Questions
How much does it cost to renounce my U.S. citizenship?
You can pay a government fee of $2,350 in the process of signing an oath to renounce your citizenship at a US embassy or consulate.
How long does it take to get U.S. citizenship after renouncing?
It depends on your eligibility for US naturalization, processing time of your application, around 8-19 months, and availability of an oath ceremony.
Can I get dual citizenship in the US?
Yes, you can have dual citizenship the United States. At the same time, you can be a US citizen and a citizen of another country.
Can I renounce my US citizenship?
Under the Nationality Act, you can renounce your U.S. citizenship. It’s a serious and irrevocable act. However, it does not necessarily absolve individuals of their military service obligations.
