More expats are giving up their US passport—here's what's driving the trend and what you need to know before considering it.
The number of Americans renouncing their citizenship has climbed steadily, and the reasons are often financial and practical rather than political. For expats, holding a US passport comes with a real cost: you owe US income tax on worldwide earnings, you must file FBAR and FATCA forms annually, and many foreign banks now refuse US clients because the compliance burden is too high.
Renouncing citizenship is a formal, irreversible process that requires you to appear at a US embassy or consulate, pay a fee (currently $640), and sign an oath. You'll lose the right to live or work in the US without a visa, and you can never hold a US passport again. But for some expats—especially those who've built a life abroad, don't plan to return, and are tired of the tax filing complexity—it's worth it.
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For expats, holding a US passport comes with a real cost: worldwide tax liability, annual FBAR and FATCA filings, and banking complications.
Before you renounce, understand the tax consequences: the US imposes an exit tax on certain high-net-worth individuals, and you may owe taxes on unrealized gains. Talk to a cross-border tax professional first. Also consider whether you might ever want to return to the US, sponsor family members for visas, or access US benefits. For many expats, the answer is simply to keep the passport and hire a tax professional to handle the annual filings—it's often cheaper and simpler than renouncing. But if you've truly settled elsewhere and want to simplify your life, renunciation is a real option.
Source: original report ↗
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