Relinquishment and Renunciation of U.S. Citizenship

Two Paths to Ending U.S. Citizenship

There are two formal processes for giving up U.S. citizenship: relinquishment and renunciation. While they achieve the same end result and follow a similar application process, they differ in approach and may have different implications depending on your circumstances.

Relinquishment of Citizenship

Relinquishment is the process of asking the government to formally recognize that you have already given up your U.S. citizenship through a previous expatriating act. The Department of State process confirms and documents that this surrender of citizenship has occurred. This can be important, for example, when the date that a person stopped being a U.S. citizen is important or relevant.

Expatriating acts that can result in relinquishment include:

1. Becoming a naturalized citizen of another country, provided the person is at least 18 and obtains the foreign nationality voluntarily
2. Taking an oath of allegiance to a foreign state, provided the person is at least 18
3. Serving in the armed forces of a foreign state engaged in hostilities against the U.S. or serving as a commissioned or non-commissioned officer in any foreign military
4. Accepting employment with a foreign government and taking an oath of allegiance or declaring allegiance in the course of the employment
5. Making a formal renunciation of U.S. nationality before a U.S. diplomatic or consular officer outside the United States
6. Making a formal written renunciation of U.S. nationality in the U.S. during a time of war, with the approval of the Attorney General
7. Committing an act of treason against the U.S., bearing arms against the U.S., or conspiring to overthrow the U.S. government

Simply committing an expatriating act does not automatically result in loss of citizenship. The individual must also intend to relinquish citizenship when committing the act. Proving this intent can be complex and is a key focus of the relinquishment process.

Renunciation of Citizenship

Renunciation is the process of formally declaring your intention to surrender U.S. citizenship going forward. Unlike relinquishment, which recognizes a past action, renunciation is a present-day decision to give up citizenship.

The renunciation process involves appearing before a U.S. consular officer at a U.S. embassy or consulate outside the United States and swearing an oath of renunciation.

Both relinquishment and renunciation require swearing oaths before a consular officer and result in the issuance of a Certificate of Loss of Nationality (CLN).

Reasons to Consider Ending U.S. Citizenship

People choose to give up their U.S. citizenship for various legitimate reasons, including:

• Commitment to another country where they have established permanent ties.
• Resolving dual citizenship complications in countries that don’t permit it.
• Simplifying international financial and banking relationships – Some foreign banks and investment firms restrict services to U.S. citizens due to U.S. financial regulations like FATCA. Renouncing citizenship can make it easier to open accounts and access investment opportunities abroad.
• Avoiding compliance costs, risk, and double taxation arising from the U.S. tax system’s worldwide reporting and taxation requirements. Renouncing U.S. citizenship eliminates the requirement to file U.S. tax returns on foreign income and report non-U.S. bank accounts.
• Reducing exposure to U.S. tax law changes – Former U.S. citizens are no longer affected by future tax laws targeting expatriates and foreign assets.
• Avoiding the U.S. exit tax in the future – Some individuals renounce before reaching financial thresholds that would subject them to an exit tax on unrealized gains at the time of expatriation.
• Personal or political reasons – Some individuals renounce due to ideological reasons or dissatisfaction with U.S. policies.

Importantly, giving up citizenship primarily to avoid U.S. taxes can trigger severe legal consequences. The U.S. government can designate individuals as having expatriated for tax avoidance purposes, potentially resulting in more severe tax treatment.

Consequences of Ending U.S. Citizenship

Giving up U.S. citizenship is an irrevocable decision with far-reaching implications. Consequences include:

• Loss of the right to live and work in the U.S. without restriction – Former U.S. citizens must obtain a visa or other authorization to enter or reside in the U.S.
• Loss of the right to vote in U.S. elections.
• Loss of access to U.S. government assistance and services, including Social Security and Medicare benefits in most cases.
• Potential difficulty in obtaining a U.S. visa for future visits – Renounced citizens are subject to standard visa requirements, and in some cases, the Reed Amendment may bar reentry if renunciation was deemed tax-motivated.
• Possible “exit tax” on worldwide assets if financial thresholds are met at the time of expatriation.
• Potential ongoing U.S. tax obligations – Individuals who are classified as “covered expatriates” may still be subject to certain U.S. tax rules, including gift and estate tax liabilities for transfers to U.S. heirs.
• No escape from U.S. prosecution – Renouncing citizenship does not prevent the U.S. government from prosecuting individuals for past or future violations of U.S. law.
• Loss of U.S. consular protections abroad – Former U.S. citizens cannot access U.S. embassy services in the same way as U.S. nationals and may lose eligibility for U.S. government assistance in emergencies.
• Military and financial obligations may remain – Renunciation does not exempt individuals from prior U.S. financial obligations, including child support payments or military service requirements.
• Possible deportation risks – Renouncing U.S. citizenship does not necessarily prevent a foreign country from deporting you to the U.S. under certain circumstances.

Additionally, relinquishing citizenship can have profound personal impacts, such as separation from family members who remain U.S. citizens or residents.

Given the gravity of these consequences, it’s essential to carefully consider all ramifications and alternatives before pursuing relinquishment. Our attorneys provide objective counsel to ensure clients make fully informed decisions aligned with their long-term interests.

Tax Implications and Planning

The tax consequences of giving up U.S. citizenship can be substantial and complex. Individuals may be subject to:

• Exit tax on unrealized gains if they meet certain financial thresholds
• Special tax treatment for retirement accounts and certain trusts
• Potential estate and gift tax issues for U.S. heirs
• Ongoing reporting requirements for the year of expatriation

Proper planning with both immigration and tax professionals is essential to minimize negative tax consequences. The IRS can designate individuals as having expatriated for tax purposes if it determines tax avoidance was a primary motivation, which can trigger additional tax liabilities.

The Process of Ending U.S. Citizenship

Whether you choose relinquishment or renunciation, the process involves similar steps:

1. Scheduling appointments with a U.S. embassy or consulate abroad (most consulates require two separate appointments)
2. Gathering required documentation, which typically includes:
   • For relinquishment: Evidence of the expatriating act (e.g., foreign naturalization certificate, employment records)
   • Proof of identity and U.S. citizenship (e.g., birth certificate, passport)
   • Completed DS-4079 questionnaire (for relinquishment) or DS-4080 (for renunciation)
3. Attending an in-person interview with a consular officer, who will assess the voluntariness and intent.
4. If approved, sign a Statement of Understanding of Consequences and take the Oath of Renunciation.

After the interview, the consular officer will forward the case to the U.S. Department of State for adjudication. If the Department determines the requirements have been met, it will issue a Certificate of Loss of Nationality.

For relinquishment cases, the certificate will be backdated to when the expatriating act occurred, which can be significant for tax purposes.

If the timing of when citizenship ended is not critical to your situation, and your relinquishment application faces challenges, you can typically proceed with renunciation instead as a more straightforward alternative.

The process can be daunting to navigate alone. Our attorneys provide step-by-step guidance to ensure clients are fully prepared and effectively represented at each stage.

Challenging an Unfavorable Determination

If the Department of State determines an individual did not intend to relinquish U.S. citizenship when committing an expatriating act, it will deny the Certificate of Loss of Nationality. The individual then has several avenues for challenging this unfavorable decision:

• Proceeding with Formal Renunciation- Unless the specific timing of when citizenship ended is important for tax or other legal reasons, this is often the simplest solution
• Submitting a Request for Reconsideration to the Department of State, presenting new evidence or arguments to demonstrate intent to relinquish
• Filing an appeal with the Board of Appellate Review, an independent body within the Department of State that reviews contested nationality decisions
• Pursuing judicial review in federal court under limited circumstances, such as when alleging a due process violation or misinterpretation of nationality law

Why Choose De Wit Immigration Law

The decision to relinquish U.S. citizenship is a process that demands experienced counsel to protect your rights and long-term interests.

At De Wit Immigration Law in Miami, we offer comprehensive support throughout this process, including:

• Helping you determine if relinquishment or renunciation is the right decision for your circumstances

• Connecting and coordinating with specialized tax professionals to assess potential exit tax and other tax consequences

• Corresponding with consulates and coordinating appointments

• Preparing and submitting all required application forms

• Optionally accompanying you to one or both required consular appointments

• Coordinating applications for U.S. visa status if needed for future travel or work in the U.S.

If you are considering relinquishing your U.S. citizenship, contact us for a confidential consultation to discuss your options and chart a path forward. We’re here to provide the clarity and confidence you need to navigate this life-changing decision.

Frequently Asked Questions