Americans living abroad are renouncing their US citizenship in record numbers. The primary drivers: the complexity of filing US taxes while living overseas, the Foreign Bank Account Report (FBAR) requirements, and the cost of compliance even for those with little US-source income.
Residency & Citizenship
Record Numbers of Americans Abroad Are Renouncing US Citizenship
More US citizens living overseas are giving up their citizenship than ever before, driven by tax complexity and FBAR reporting burdens.
Many expats qualify for the Foreign Earned Income Exclusion and pay far less than they think.
If you're a US citizen abroad, renouncing is a serious decision with permanent consequences—you cannot easily regain citizenship. Before considering it, understand your actual tax liability. Many expats qualify for the Foreign Earned Income Exclusion (FEIE), which can eliminate US tax on the first ~$120,000 of foreign earned income. Others benefit from foreign tax credits. The real cost is often lower than perceived. Consult a cross-border tax professional before making any move. Renunciation requires a formal appointment at a US embassy or consulate, costs $2,350, and involves a lengthy process. It's not a quick fix.
Source: original report ↗
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