Americans Are Increasingly Canceling U.S. Passports But Politics Isn’t The Reason
Source: The Travel, Christine Dulion
Photo: Shutterstock
In recent years, more and more Americans have sought dual citizenship in another country. For some, it’s merely been about reconciling with familial roots, such as Americans seeking Canadian passports after Canada changed its citizenship rule for “Lost Canadians.” For others, obtaining citizenship elsewhere has been part of an exit plan to distance themselves from the United States, whether for political reasons or due to the country’s increased cost of living.
For some, part of that exit plan includes renouncing their U.S. citizenship altogether. However, while there aren’t official government tallies for those who formally cut their ties to the U.S., Americans Overseas has noted that it’s receiving more inquiries about renunciation this year. The agency is even expecting a 15% increase compared to last year, according to reporting from CNN. There are several reasons motivating people to turn over their U.S. passports other than politics.
Experts who work with Americans overseas say for many U.S. citizens living abroad, a bigger concern is finance, as the U.S. taxes citizens on worldwide income regardless of where they live, work, or earn money. For Americans who have moved permanently overseas, and for “accidental Americans” who may have U.S. citizenship without having lived much of their lives in the U.S., keeping that passport can come with years of financial filing, banking headaches, and compliance costs.
It doesn’t hurt, either, that the U.S. State Department recently slashed the fee for requesting a Certificate of Loss of Nationality.
The Fee To Renounce American Citizenship Just Dropped By Over 80%
Earlier this year, the State Department reduced the fee for administrative processing of a Certificate of Loss of Nationality from $2,350 to $450, a drop of approximately 80.9%. The change took effect on April 13, 2026.
However, it’s important to keep in mind that renouncing U.S. citizenship is not a matter of simply mailing in a passport or filling out a form online. The State Department says a person wanting to renounce must fully review information about the loss of nationality, complete required forms, attend two interviews with a diplomatic or consular officer (at least one in person), and take the oath of renunciation in person.
In other words, it is deliberate and hard to undo.
The State Department also warns that loss of U.S. nationality is generally final, and former U.S. citizens may need a visa or Visa Waiver Program authorization to visit the U.S. later. A person who gives up U.S. nationality without another citizenship can also become stateless, making it virtually impossible to exist legally in any country.
Stateless individuals can face severe hardship, including:
Lack of access to education, public services, and health care
The inability to work or own property
Not being able to vote, open a bank account, legally get married, or obtain a passport for travel
The inability to pass on citizenship/statehood to children
Being at increased risk of exploitation and abuse
Lack of consular protection
Still, for U.S. citizens who already have dual citizenship or are planning to obtain citizenship in another country, giving up their American nationality is sometimes the best option for their circumstances.
The Numbers For Renouncing U.S. Citizenship Are Rising, But They Are Hard To Track
CNN reported that Americans Overseas counted almost 5,000 people listed in the 2025 Federal Register publications for individuals who expatriated. According to the group, that was the highest total since 2020, when the figure reached over 6,500.
The official picture is still somewhat messy. The IRS publishes quarterly Federal Register lists titled “Quarterly Publication of Individuals Who Have Chosen To Expatriate,” but those lists don’t explain why people gave up citizenship.
Americans Overseas also told the outlet that it’s currently advising many more thousands of U.S. citizens, mostly dual citizens, who are either in the renunciation process or asking questions about it.
That doesn’t necessarily mean those tens of thousands of people will give up their passports. But it does show how many Americans abroad are at least considering their options — including whether renouncing U.S. nationality will make their lives abroad easier or better in some way.
The Biggest Reason Americans Are Giving Up Citizenship May Be Taxes, Not Trump
For citizens living inside the U.S., tax season is annoying enough. But for Americans abroad, it can be much more complicated. While there are plenty of countries where Americans can hold dual citizenship, that doesn’t exempt them from handing over income taxes — even if they haven’t been working or living in the U.S.
While dual citizenship has long been possible for U.S. citizens, a recently proposed bill could mean Americans could lose their U.S. passport. Ohio Republican Senator Bernie Moreno proposed the Exclusive Citizenship Act of 2025 to eliminate dual citizenship for Americans. However, most experts say the likelihood of this bill being passed is low (roughly 3% by some estimates).
The Internal Revenue Service says U.S. citizens and resident aliens are generally subject to tax on worldwide income, whether they live in the U.S. or overseas. That means an American living permanently in France, Germany, Costa Rica, New Zealand, or another country may still need to file a U.S. tax return every year.
Many expats don’t end up owing much, or anything, because foreign tax credits, tax treaties, or the foreign earned income exclusion can reduce what they owe. But they’re still obligated to file, which is time-consuming and can sometimes be expensive on its own for individuals who require professional help. They may also still be required to report foreign bank accounts and foreign assets.
Jonathan D. Tiegerman, of the Zurich-based U.S. tax and legal advisory firm Tiegerman, told CNN that the requirement to file and pay taxes on worldwide income can be a major driver for people considering renunciation. Americans Overseas co-founder Daan Durlacher also told the outlet that most people the organization advises are motivated more by the Foreign Account Tax Compliance Act and tax consequences than by politics.
FATCA Can Make Normal Banking Harder For Americans Abroad
The Foreign Account Tax Compliance Act, better known as FATCA, is a major part of the frustration for Americans abroad. Passed in 2010 and implemented in later years, FATCA generally requires foreign financial institutions to report information about accounts held by U.S. taxpayers.
The IRS says foreign financial institutions and certain other foreign entities must report foreign assets held by U.S. account holders or face withholding on certain payments. For banks, that can make U.S. clients complicated to manage. For Americans abroad, it can turn routine financial life into a paperwork problem.
“FATCA, in particular, leads many European banks to refuse to open or maintain accounts, mortgages, or life insurance contracts for clients identified as ‘US persons’ for fear of the 30% withholding penalty provided for under US law. Acts as ordinary as receiving one’s salary, taking out a loan to buy one’s main home, or saving for retirement become an obstacle course” for accidental Americans, said Fabien Lehagre, founder and president of the Paris-based Association of Accidental Americans, to CNN.
That is especially frustrating for people who don’t even think of themselves as American in any practical sense.
“Accidental Americans” Face A Different Kind Of Passport Problem
The term “accidental American” usually refers to someone who is considered an American citizen simply because they were born in the U.S. during a temporary stay by their parents, left as a child, or inherited citizenship through a parent.
Some may never have worked or even lived in the country. Some may not have a U.S. passport, a Social Security number, or strong personal ties to the U.S. Others may only discover the issue when a bank asks for their U.S. tax information. CNN reported that Lehagre estimates there are about 300,000 accidental Americans in Europe.
For this group, having a U.S. passport can feel less like a travel privilege and more like a burden. They may live their entire lives in another country, earn income there, pay taxes there, and still be treated as “U.S. persons” by foreign banks and tax systems.
What Americans Abroad Should Know Before Renouncing Citizenship
Renouncing U.S. citizenship is a legal and financial decision that should carry a lot of weight. Anyone considering it should get professional advice before starting the process, especially if they have foreign accounts, investments, property, pensions, business ownership, or past years of unfiled U.S. tax returns.
Americans abroad considering renouncing U.S. citizenship
Renunciation fee: The State Department reduced the Certificate of Loss of Nationality processing fee in 2026, removing a significant financial barrier for many who were considering renouncing their citizenship.
Tax filing: U.S. citizens abroad may still need to file U.S. tax returns on worldwide income.
FATCA: Foreign banks may report U.S.-person accounts and may treat U.S. clients as higher-compliance customers.
Accidental Americans: Some people may be U.S. citizens through birth or parentage, even without a meaningful adult connection to the U.S.
Future U.S. travel: Former citizens may need a visa or Visa Waiver Program authorization to visit the U.S.
Statelessness: The State Department warns that renunciation without another nationality can leave a person stateless.
In conclusion, the U.S. passport is still one of the world’s most powerful travel documents. But for Americans living permanently abroad, it can also carry obligations that don’t end at the border.
Christine is a travel writer who specializes in solo travel, digital nomadism, and regional cuisine. Her interest in the culinary arts stems from her 15-year career in F&B, and her passion for solo travel began when she went full-time as a freelance writer. Since then, she has explored and written in many cities and countries, offering readers practical tips on solo travel and insider insights on where to find the best food.
In addition to contributing to TheTravel, Christine was the editor-in-chief of Hong Kong’s TheMilSource, and she has written for publications such as Explore, Islands, Mashed, Low Season Traveller, Points North Atlanta, and The Cool Down. When she is not writing, she can often be found exploring local food scenes, experimenting in the kitchen, and planning her next trip.