Get a Clean Break from the US Tax System and Renounce the Right Way!
Don't let hidden taxes catch you:
Get informed before renouncing
US citizenship renunciation is not a quick fix or an easy way out of tax obligations.
The process is complex and costly, and it might create new tax obligations. If you don’t plan carefully, you could end up:
- Paying more taxes than if you hadn’t renounced
- Facing a ban from entering the US again (Reed Amendment)
But, if you do it the right way, it can free you up from dealing with a lot of things:
- Double taxation
- US Gift Tax and Estate Tax rules
- US reporting and filing requirements
- Costly cross-border planning and legal advice
- US tax on everyday transactions and investments
- Worrying about changes in US tax laws for expats
Who is it for?
- Long-term green card holders leaving the US
- Wealthy Americans in low-tax countries
- US citizens with foreign spouses who started a family abroad
- Global US entrepreneurs living in another country
- Naturalized citizens leaving the US again
- Accidental Americans
Who might it not be ideal for
Who might it not be for?
- People looking to stay in the US often (especially if their new passport requires a visa or has strict time limits)
- People with substantial retirement savings in tax-advantaged accounts (gains will be taxed as ordinary income)
- Those who tend to change their mind — renunciation is irreversible
- Those receiving a military pension
Renunciation isn't just about taxes:
It's a complex process with many moving parts
Renouncing your US citizenship is more than just dealing with taxes. It’s a multifaceted process involving various departments and legalities.
- The Department of State handles your renunciation process.
- The Internal Revenue Service are the ones you don’t want to mess with — non-compliance with IRS overseas tax regulations can lead to fines starting from $10,000 per form. You could also face Gift Taxes, Estate Taxes, GILTI, and Transitional Tax issues.
- The Social Security Administration: You risk losing or reducing your benefits if things aren’t done correctly.
- The USCIS and Department of Homeland Security handle your visa application once you renounce and can limit your travel to the US if you don’t renounce properly.
What scares people the most is getting blacklisted under the Reed Amendment!
On the other hand, there are your residency local laws & regulations
Before you start anything — it’s crucial to understand all the benefits and potential consequences of renunciation.
Renouncing vs. keeping US citizenship:
What will it cost you?
There’s a long list of complex forms and reports that you as a US citizen/Permanent resident must follow; failing to do so can result in penalties costing thousands of dollars even if you are working and living overseas.
So it’s normal when people want to escape the mode of “doing taxes for 3-6 months of the year” — first in the country where they live, then US taxes.
But taxes might not be the only issue you face depending on your status. You could also have:
- Banking issues as a US citizen abroad (thanks FATCA)
- Challenges with estate planning and inheritance laws
- Difficulty investing in US funds (as an expat)
- Limited access to certain financial services
- Punitive US tax on some foreign investments
- Or any other US or international issue
Here’s a look at the real costs of renouncing US citizenship, along with the potential costs of keeping your US citizenship while living abroad — things many people might not even realize:
Financial costs of renunciation
- Renunciation fees ($2,350)
- Getting another citizenship (if needed)
- Exit Tax if you are a Covered Expat
- Travel to consulate/embassy (interview)
- Catching up on back taxes
- Additional costs
Possible costs of keeping citizenship
- Legal and accounting fees
- Tax on sale of a primary residence
- Ownership in a non-US private company
- Foreign mutual funds
- Divorce settlements with a foreign partner
- US Inheritance Tax (Death Tax)
But that's not all
You should be also in position to navigate gift tax, generation-skipping tax, income splitting, steep medical costs, Obamacare tax on investments, and many other things.
These added hurdles can really strain your finances.
That’s why careful planning and effective strategies are so important — they can really help you avoid or minimize these implications.
Our renunciation experts have worked on many expatriation cases and will help you with strategic planning no matter how complex your domestic or international tax situation is.
How we can help you with renouncing US citizenship
Why timing matters in
renouncing US citizenship
Some of the strategies we recommend might need to be implemented a year before you renounce, or even earlier, to be effective. This way, you can legally reduce or minimize the Exit Tax.
So, it’s better to start sooner rather than later if you’re considering renunciation, especially with potential changes that could happen along the way.
We don’t speculate, but the US administration has already proposed increasing the capital gains tax rate from 20% to 44.6% as part of the fiscal year 2025 budget.
Meaning — you could end up paying more than double your current Exit Tax in the near future (more on Exit Tax calculation in the FAQ).
That’s why we recommend talking to one of our renunciation advisors about your situation and goals today.
We’ll go over your business and personal goals for renunciation together and identify the solution that suits your needs best.
Let's clear up your misconceptions
about renouncing US citizenship
Nearly one-third of American expatriates are already planning to renounce their US citizenship.
The internet is full of speculation about renouncing citizenship, but without expert guidance, you might only be getting part of the story.
We’ve mentioned this already, but it’s worth saying again:
Navigating this process means steering clear of many tricky spots like the Exit Tax, Inheritance Tax, travel restrictions, losing benefits, and the risk of being permanently barred from the US.
So it’s no wonder that you are afraid of legal repercussions when plotting your escape from the grasp of the IRS.
We don’t know your specific situation yet, but we’ve helped numerous clients to legally avoid or minimize Exit Tax, stay in compliance and navigate this delicate process smoothly.
One of our clients initially thought they would owe $250k Exit Tax.
But in a consultation with our experts, we devised a renunciation strategy that resulted in zero exit tax. So instead of $250k, they only had to pay the renunciation fee, final year US tax, and our services.
Exit Tax is not a wealth tax
When you give up your US citizenship, you might face an Exit Tax if you’re considered a ‘Covered Expat.’
This happens if you meet any of these criteria:
- Have a net worth of $2 million or more
- Have not been in US tax compliance for the last 5 years
- Your average annual net income tax for the previous five years exceeds $190,000
But each situation is different.
One person can leave the United States with a net worth of $15 million and face no Exit Tax, while another with a much lower net worth may incur a significant Exit Tax.
And even if you face the Exit Tax, with thorough pre-planning before renouncing, you can legally reduce your Exit Tax.
Our priority is to provide you with the information and insights needed to make the best decision for you and your family.
Get clarity on your renunciation journey
During the consultations, we cover various topics and answer any questions you might have. Here are some of the questions we typically answer during the consultation:
- What should I do if I haven't filed US taxes in years, or ever?
- How can I determine if I am a Covered Expat, and how can I minimize the Exit Tax?
- What are the positives and negatives of giving up US citizenship?
- Can I still access US benefits such as Social Security & Medicare after giving up citizenship?
- What happens to my US-based pensions if I give up US citizenship?
- Can I still travel to the US and spend time there?
- What IRS reporting is required for someone with or who had a US green card?
- How will renouncing US citizenship affect my ability to own property in the US?
- Most importantly, how can renunciation best serve my specific needs?
Renounce Now was launched by Global Expat Advisors (GEA)
because of the numerous renunciations we’ve handled
over the years and our desire to better serve your needs.
Why work with Renounce Now?
Schedule a consultation with a Renounce Now/GEA renunciation specialist
Before our consultation, we’ll ask for details about your situation to tailor the session for you. After booking, you’ll receive a secure questionnaire. If you choose to work with us, the initial consultation fee will be credited towards your first bill.
The truth about Exit Tax
You don't know
what you don't know — yet
Celebrities like Jet Li, Tina Turner, and global entrepreneur Andrew Henderson are just a few of the celebrities who renounced their US citizenship. Some managed it successfully, while others faced unexpected costs.
Because no matter how big or small fish you are, the IRS will chase you down and find you.
Former UK Prime Minister Boris Johnson found out the hard way. Without proper tax advice, he ended up paying much more than he should have. If he had known his obligations, he could have saved a fortune (some estimate hundreds of thousands of dollars).
You might be in a similar situation, unsure about your citizenship or/and tax status.
Here are the 3 key things you need to know:
1. Uncle Sam wants a cut of your global earnings: The IRS doesn’t care where you live; they want their share.
2. Act first: If you’re years (or even decades) behind on your US taxes and the IRS catches up to you first, it won’t end well. It’s better to reach out to the IRS first than to have them come after you.
3. Expert knowledge is crucial: Tax law is what bothers you. Consult with tax experts before you plan to start the process.
Don’t let the complexity overwhelm you; it’s normal if you don’t fully understand it yet. Take control, get informed, and avoid unnecessary costs.
Renounce the right way
- Avoid getting hit by the Exit Tax
- Save your kids from costly Inheritance Taxes
- Ensure you're not blacklisted from the US (Reed Amendment)
- Continue to collect Social Security and benefits
- Start investing hassle-free wherever you live
- Enjoy unrestricted travel without worries
You speak, we listen — and deliver
Frequently asked questions
Do I need to be tax compliant
to renounce?
To renounce your US citizenship properly, you must be tax-compliant for the past 5 years.
This often involves paying past tax debts to avoid future issues and potential financial penalties.
If you haven’t filed US tax returns because you were unaware of the requirement, the IRS offers a Streamlined Filing Compliance Procedures program. To qualify, you must:
- Certify that your failure to file was due to ignorance, not intentional
- File your last three missed income tax returns and pay any owed taxes (plus interest)
- File a Report of Foreign Bank and Financial Accounts (FBAR) for each of the last six years
You can read more about this in the next question.
What’s the relief option for
ex-US citizens?
Relief procedures from the IRS are designed for certain former US citizens who failed to meet their tax filing obligations. It specifically targets those who have renounced their citizenship and seek to resolve their tax issues without incurring significant penalties.
The program is intended for individuals who were unaware of their filing responsibilities or who made unintentional errors. It offers a way to become compliant with tax requirements while avoiding severe repercussion.
To be eligible for these relief procedures, you must meet the following criteria:
- No prior tax return filing history with the IRS
- Pass the Tax Liability Test
- Pass the Net Worth Test
- Have an aggregate total tax liability of $25,000 or less for the five years before expatriation and in the year of expatriation
- File six years of US tax returns.
What are the renunciation steps?
Renouncing American citizenship is a complicated and time-consuming process. Here are the six steps to follow for renouncing US citizenship:
- Obtain a second passport
- Be up to date on your US taxes
- Prepare expatriation paperwork
- Book your appointment
- Attend your renunciation appointment
- File your final US tax return
How is the Exit Tax calculated?
The Exit Tax is calculated as if you sold all your worldwide assets the day before you renounce your US citizenship. There is an exclusion threshold of $866,000 (2024) for these imaginary capital gains, even for assets that can’t be sold.
For example, if your total assets have a theoretical gain of $900,000, only $34,000 would be taxed (since $866,000 is excluded).
However, there are some exceptions for certain retirement plans and cash in accounts. The tax is applied to the estimated gains from these assumed sales.
Additionally, it’s important to note that your country of residence may impose taxes on profits from the same assets if they are sold or if you receive deferred compensation.
Essentially, the exit tax covers everything you own. While some assets are easier to calculate than others, you’ll definitely need professional help to figure out the final numbers.
Can I structure my assets to avoid
the Exit Tax?
Each case is different; for some, it may be possible, while for others, it may not be. That’s why it’s crucial to have a consultation call to review your specific situation and find the best solution for you if you decide to renounce US citizenship.
Even if you need to pay the Exit Tax, there are ways to legally minimize it and significantly save money that you might not save without proper planning.
What paperwork & regulations
must I navigate?
Here’s a breakdown of some of the paperwork and regulations you’ll have to navigate:
Tax Forms:
- Form 8854
- Form 1040 & 1040NR
- Form DS-4079-4081
- Form W-8CE and international forms
Regulations:
- Foreign Corrupt Practices Act (FCPA)
- Office of Foreign Assets Control (OFAC)
- The Financial Action Task Force (FATF)
- Foreign Bank and Financial Accounts Reporting (FBAR)
- Foreign Account Tax Compliance Act (FATCA)
- Global Intangible Low-Taxed Income (GILTI)
Handling all these forms and rules can be really stressful and confusing.
How much does it cost to
renounce?
The renunciation fee to give up US citizenship is $2,350. Additionally, there may be other costs involved, such as legal fees, tax compliance costs, and potential Exit Taxes, which can vary for each individual.
What happens after renouncing
US citizenship?
Renouncing your US citizenship is a permanent legal step.
You will lose all rights of a US citizen, like voting and protection from the US government. You must give up your US passport and follow US immigration rules, which might mean needing a visa to visit the US. You will also lose the ability to pass on US citizenship to future children.
As for taxes, after renunciation, you are only taxed on income from US sources. This includes income from US businesses, investments, rental properties, and similar sources.
After renouncing US citizenship, you need to carefully consider legal, financial, and personal issues. It’s a good idea to get help from a tax professional or legal advisor to manage these complexities.
Can you help with my taxes if I
don't renounce?
Of course, that’s exactly the point—to find and choose the best option for you. That’s why consultation is a crucial step in the entire process.
In addition to US citizenship renunciation, we can also help you with:
- Personalized onshore and offshore strategy advice
- A tailored plan to maximize tax benefits
- Asset protection planning
- Retirement and investment planning
- Self-directed IRA service
Who we are and what we do?
Renounce Now is a part of Global Expat Advisors, where we focus on international small and mid-sized companies and individuals, offering the expertise that big firms like PwC do but without the big price tag.
Our experts at Global Expat Advisors have worked on many expatriation cases, including high-profile, complex international situations.
But, we also handle other things such as tax strategies to setting up bank accounts and business structures, making sure you’re compliant with the US and International tax laws every step of the way.
Our parent companies have been serving entrepreneurs for over 15 years. We launched Global Expat Advisors to specialize in global business solutions, while Online Taxman handles US tax preparation.
We’re here year-round to answer any questions, help with tax planning, and ensure you pay the minimum in taxes.
And we make the process quick and easy for you.
What is the refund policy?
- Full refund of the consultation fee if canceled 48 hours in advance
- 50% refund if canceled between 6 to 48 hours before the scheduled time
- No refund for cancellations made less than 6 hours before the scheduled time
We can reschedule the consultation, if needed.
How can I make a payment to you?
Consultation payments are conveniently accepted via major credit cards, including Visa, MasterCard, and American Express.
Please let us know if you have a preferred method, and we will do our best to accommodate you.
My question is not listed here.
What can I do?
We understand you might have more questions, and some are best discussed over a call. So let’s book a 60-minute session to cover everything you need.
Once scheduled, you’ll receive a pre-consultation questionnaire to ensure our call is productive.
Disclaimer:
1. Renounce Now is a part of Global Expat Advisors and this website information is not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. We aren't tax attorneys, and we don't have local accountants in every country. But we do have a wide network of partners who can help, including immigration and tax attorneys, local accountants, licensed valuation professionals, and other experts you might need. We stand by the service you'll get from our team, but we have no control whatsoever over the US government. If between now and when you finalize your renunciation process, before and during your engagement, the US government does any of the following:
1. Makes a change in their renunciation or taxation laws
2. Introduces new charges renunciation or tax filing
3. Delays your paperwork or appointments
4. Makes any other disruptive change to the process
2. We cannot be held responsible for these changes. However, what we will do is work with you as best we can to help navigate these changes. Our commitment remains to support you through these potential changes to the best of our ability. We understand that unexpected developments can arise during the renunciation process. We encourage you to remain flexible and prepared, and we will work diligently to assist and guide you throughout the process.