Renounce US Citizenship: Process and Implications
Giving Up and Getting Out? It's Not that Easy
Section 349 of the Immigration and Nationality Act (INA) - located in 8 U.S.C. 1481 - governs the loss of US citizenship through voluntary personal action. Short of committing treason, taking a foreign government post requiring an oath, or pursuing other activities which would cause the Department of State to revoke your citizenship, the way to renounce US citizenship is to make a formal declaration.
Of course, making this formal declaration to renounce US citizenship isn't easy. First, it cannot (except under some unusual war-time circumstances) be done within the United States or its territories. You must appear in person at a US consulate in another country, presumably the country in which you already reside legally and intend to reside thereafter. You must then sign an oath of renunciation and hand over your US passport. Even if you take all these steps, your renunciation may not be accepted by the State Department, especially if they believe that you plan to return to the United States (even for a visit) within a short period of time. If you renounce US citizen formally and it is accepted, your name is then published in the Federal Register as a legal notice to anyone who might be trying to locate you - including the IRS.
A renunciation of US citizenship should go hand-in-hand with a naturalization process in another country. In fact, it is advised (and practically required) that you obtain full, permanent citizenship in another country before even trying to renounce American citizenship. In other words, you basically need to hold dual citizenship, even if only briefly, because the US is loathe to see people go without an official nationality.
[By the way, if you plan to renounce US citizenship but fear becoming stateless, you can actually "purchase," for lack of a better term, citizenship in a handful of countries for a hefty price. St. Kitts and Nevis, a Caribbean nation, is one such example; they'll let you invest about $100,000 in the country and pay some fees in exchange for a relatively fast citizenship process.]
You may be wondering what the implications are if you renounce US citizenship. The move is almost entirely irrevocable; signing away your rights means that it's nearly impossible to get them back unless there was an administrative error or some sort. Also, the renunciation is an all-or-nothing venture. Case law has reinforced the principle that people cannot give up some citizenship rights while retaining others.
Renouncing us citizenship does not obviate any existing tax liability, as you can be responsible for US taxes for up to ten years. The government recognizes that some people, especially those with overwhelming tax obligations, sometimes seek a renunciation as a way of shirking their financial responsibility. Accordingly, very specific statutes govern tax liability for people giving up citizenship, and these are retroactive back to 1995. And in case you were wondering, tax liability is not all that remains after you renounce US citizenship. You are still subject to the criminal process for any wrongdoing, and debt incurred while still a citizen remains valid and collectable, even if that becomes more difficult for your creditors.
Other implications? You lose the right to reside here. You lose the right to federal financial aid if you ever return on a visa to pursue education. You lose the protections accorded by the Fair Debt Collection Practices Act (which may be significant if you are trying to avoid financial obligations). You can't run to the US Embassy for protection in the event of a problem in your new country - or any other country for that matter. In short, you no longer have a relationship with the US and are afforded none of the protections and rights you once had. That may be okay with you if you've secured citizenship in a stable new country - but you'd better be certain about the renunciation process and its implications. Or else the State Department won't even let you do it in the first place!
Published by J. Bartleby
I've been writing, in one form or another, for years. I'm a thirtysomething liberal in the Midwest. View profile
- Free Speech and the Press in the United StatesFreedom of speech and freedom of the press are two examples of the rights "guaranteed" to citizens of the United States of America. Long ago, Thomas Paine wrote something to the effect that the "only freedom of the p...
- Marco Island, Florida: A Caribbean-like Atmosphere in the United StatesMarco Island, Florida is a great tropical place to spend your vacation anytime of the year. You can experience a Caribbean-like atmosphere, without leaving the United States.
- A Look at Income Tax Liability in Cyprus for ExpatsIf you are planning your move abroad to Cyprus to live and work you should familiarize your self with the income tax liability you may face after your move to the Mediterranean island.
- The Role of the United States in Solving World HungerHunger keeps people from working productively and thinking clearly. The United States can help those that are hungry with implementing programs for sustainable agriculture, the government regulation of agribusiness, a...
- Howard Zinn's Voices of a People's History of the United StatesThis marvelous resource is an invaluable collection to those with an interest in history.
- An Analysis of the United States Oil Policy and OPEC
- Female Circumcision in the United States
- An Overview of the Non Profit Sector in the United States
- An Evolving Democracy: The United States
- Great Inventions Courtesy of the United States Government
- Canada and Australia Are Banning Light Bulbs... Are the United States Next?
- United States Needs Mass Media
- There are rigid guidelines for renouncing citizenship.
- You basically have to be a citizen or permanent resident somewhere else first.
- You can't get rid of debt, criminal charges, or most tax obligations.
25 Comments
Post a CommentEduardo Saverin,
At the moment, you’re living in Singapore where you enjoy your life as king. I know you’re aiming to save on taxes because Singapore does not levy gained capital tax and the country is relatively low- tax jurisdiction, particularly foreign investor. You’re rich but not in safe and happy when becoming stateless. You lose the right to federal financial aid if you return the US. You lose the protections accorded by the Fair Debt Collection Practices Act. You cannot run to the US Embassy for protection in the event of a problem in your new country for some matter. In short, you no longer have a relationship with the US. Do you intend to go further to China? In my opinion, it’s not wise to renounce your American citizenship.
If you go through with this proceedure will the US gov. stop your social security pension payments as well?
There are numerous factual errors in this article about the renunciation process and consequences.
For example:
"your renunciation may not be accepted by the State Department, especially if they believe that you plan to return to the United States (even for a visit) within a short period of time." ... Not true. After expatriation, a renunciant has the same rights of entry to the US as any other citizen of his/her country.
The tax information is both incorrect, incomplete, and not updated.
More accurate and complete information is at both Wikipedia and at RenunciationGuide:
http://en.wikipedia.org/wiki/Renunciation_of_citizenship
http://renunciationguide.com/
The author failed to mention the "Exit Tax". I don't know the details, but it goes something like this. Upon renouncing U.S. citizenship, you add the total of all your assets, you are given a credit of $600,000, then the balance is taxed at 33%. This is not an income tax, but a tax on all that you own.
I moved to Britain with my family and renounced my US citizenship years ago, not because I was angry at the things the government was doing(which I was), but because of the ignorance, hate, prejudice and inequality that is so widespread throughout the US, and the willingness people have to be blind to this from 'patriotism'. Some friends I worked with are planning on doing the same later this year and I know my old neighbours are heading for Canada. Last one out of the USA get the lights on your way out!
Two things this article does not mention: 1) If denouncing the proper way the American government would like, then what happens to all of the social security one has paid during a lifetime of work? 2) My going to another country illegally and declaring political asylum!
America is so overrated that it's sicking. The laws the cheating and the lies they tell here are lame. I really hate america and all that it stands for cause to be honest america don't stand for much. The countrys just a bully and want everyone to do like they do and if you don't agree they either set you up, starts a war or invade your space and throw you in prison. I really wanna get out of this stickin country. But I would really ike for this country to feel the pain I felt and that they put me through boom
This article is incorrect in one point ,,you can reside in the US after renouncing your citizenship, and if married to a US cit. you can get a couple of types of residential visa.
This article takes the old patriotic line. "You can't run to the US Embassy for protection in the event of a problem in your new country - or any other country for that matter. In short, you no longer have a relationship with the US and are afforded none of the protections and rights you once had."
I was born and grew up in the US and left it forever in 2002. US citizenship gives you absolutely NO rights aside from voting and residing in the US. It is actually more of a liability than an asset if you decide to live abroad. While I have not formally given up my citizenship, I lost it automatically when I became naturalized abroad and my life has never been better!
You must avoid statelessness ahead of renouncement by legally acquiring a second citizenship. If you don't already have one, the best way is through a legal citizenship by investment program offered in only 3 countries countries. It can take on average 3 - 4 months and no residency is required. Further details can be found here http://www.tayloredway.com/investments/