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The U.S. State Department announced a significant reduction in the cost to formally renounce U.S. citizenship.
Based on a final rule published on Friday in the Federal Register, the official journal of the federal government, the fee is reduced from $2,350 to $450, representing an approximate cut of 80%.
The new measure, which came into effect on Friday, reverts to the amount that the federal government charged when it first implemented this fee in 2010.
The reduction had been promised by the State Department in 2023, but it had not yet been officially implemented.
According to the agency AP, the decision comes after years of legal disputes and pressure from groups representing U.S. citizens living abroad, many of whom sought to renounce their citizenship due to tax obligations and other administrative burdens.
A long and rigorous process
Renouncing U.S. citizenship is not an immediate process.
The process involves several formal steps before consular officials of the Department of State.
Applicants must repeatedly confirm, both in writing and verbally, that they understand the legal consequences of their decision.
Only after these verifications are they allowed to take a formal oath of renunciation, which must then be reviewed and approved by the Department of State.
The origin of the controversial rate
The cost of renouncing U.S. citizenship has not always been this high.
In 2015, the Department of State decided to raise the fee from $450 to $2,350, claiming it was necessary to cover the administrative costs associated with the process.
That increase coincided with a period when the number of Americans seeking to renounce their citizenship surged.
Among the causes was the increasing pressure for new tax reporting requirements for Americans living abroad, which generated strong discontent among expatriates.
The increased cost of the procedure sparked criticism from various organizations, including the Association of Accidental Americans, based in France.
The group primarily represents individuals who possess U.S. citizenship solely by being born in the country, yet have spent most of their lives outside of the United States.
The organization filed several lawsuits against the U.S. government challenging the legality of the cost.
One of these legal actions is ongoing and maintains that there should be no fee to renounce citizenship.
Reactions to the cost reduction
The association welcomed the decision of the Department of State, considering it a step forward in the defense of the rights of those who wish to renounce their U.S. citizenship.
"The American Association for Accident Victims welcomes this decision, which recognizes the need to make this fundamental right accessible to all. This victory is the direct result of six years of tireless legal action and advocacy," stated its president, Fabien Lehagre, in a statement.
According to data presented by the organization before the courts, at least 8,755 Americans paid the full fee of $2,350 to renounce their citizenship since the government announced in 2023 that the cost would be reduced.
The State Department, however, has not provided official figures on the total number of Americans who have renounced their citizenship in recent years.
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