In a big relief for many US passport holders living overseas (including some Indians with dual ties or green card pasts), the US State Department has cut the fee to formally renounce American citizenship by about 80%. The cost drops from $2,350 (roughly ₹2 lakh) to just $450 (around ₹38,000 at current rates).
This change came into effect after years of court fights by groups like the Association of Accidental Americans, who argued the high fee was unfair, especially for people born in the US but living abroad their whole lives, facing complicated US tax rules like FATCA reporting. “The Association of Accidental Americans welcomes this decision, which acknowledges the necessity of making this fundamental right accessible to all,” its president, Fabien Lehagre, said in a press release. “This victory is the direct result of six years of relentless legal action and advocacy.”
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The fee was hiked in 2015 because more expats wanted to exit due to those tax headaches, but now it’s back to the 2010 level. The new fee, promised way back in 2023, had never been implemented. The cost of $450 is restored now as it was when the State Department first started charging Americans to formally renounce their citizenship in 2010.
The process is still lengthy, you have to go to a US embassy or consulate, make multiple declarations, take an oath, and get everything reviewed. But this lower fee makes it more accessible. Groups fighting the old rule welcomed it as a “victory” after six years of legal work. At least 8,755 people paid the full amount since a 2023 promise of reduction.
For Indians or NRIs dealing with US citizenship issues, this could ease decisions for those tired of dual tax compliance. But remember, renouncing doesn’t erase potential exit taxes or other rules, consult a tax expert!