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In a nutshell

Nearly half (49%) of American expats are considering renouncing their U.S. citizenship, a 63% jump from last year driven by political frustration and tax burdens.

Millennials and Gen X expats are most likely to consider giving up citizenship (60% and 54% respectively), with parents of young children leading at 71%.

Over one-third of Americans still in the U.S. are considering moving abroad, motivated by cost of living, safety concerns, and lifestyle upgrades.

GRANDVILLE, Mich. — The numbers tell a stark story: 49% of American expats are now seriously considering renouncing their U.S. citizenship, a dramatic jump from just 30% last year. That’s a 63% increase in just 12 months, signaling a crisis of confidence among Americans living overseas.

The 2025 Expat Trends Survey, conducted by tax service company Greenback, surveyed over 1,100 Americans (719 current expats) and found that political frustration, financial burdens, and a sense that America has lost its global standing are driving citizens to contemplate the ultimate breakup with their homeland.

Politics and Taxes: The Perfect Storm Driving Americans Away

More than half of those considering renunciation point to one major factor: they’re fed up with the direction of U.S. politics. The 2024 election results have only deepened this disconnect, with 63% of expats saying the outcome convinced them to stay abroad permanently.

The political frustration isn’t happening in a vacuum. It’s paired with a tax system that many expats describe as a nightmare. A whopping 83% of American expats say filing U.S. taxes while living abroad is stressful, and more than one in four admit they don’t feel confident they’re doing it correctly.

The problems are specific and costly. Over half (53%) struggle with managing tax obligations to both the U.S. and their new home country. Another 51% find American tax laws too complex to understand, while 45% say reporting foreign income and assets creates additional headaches.

Foreign banking adds another layer of difficulty. Two-thirds of expats (67%) find foreign banking laws stressful, and nearly 60% say a U.S. law called FATCA has made it harder to open or maintain bank accounts in their new countries. FATCA requires foreign banks to report American account holders to the IRS, leading many banks to simply refuse American customers rather than deal with the paperwork.

Younger Americans and Parents Leading the Exodus

The generational breakdown reveals who’s most likely to walk away from American citizenship. Millennials and Gen Xers are leading the charge, with 60% and 54% respectively considering renunciation. Meanwhile, both Gen Z and baby boomers show much less interest—only 29% in each group are thinking about giving up their passports.

Parents with children under 18 are even more likely to consider renunciation, with 71% having thought about it compared to just 31% of those without kids. Many parents seem to be making calculated decisions about their children’s futures, potentially viewing U.S. citizenship as more burden than benefit for the next generation.

Geography matters too. American expats in India show the highest interest in renunciation at 93%, followed by those in the UK (53%), France (48%), Australia (47%), Canada (30%), and Germany (27%). Only 12% of expats in Spain report similar feelings, showing how local conditions and relationships between countries can influence these decisions.

America’s Tarnished Global Image

The survey reveals that expats’ concerns go beyond personal inconveniences to broader worries about America’s role in the world. Three out of five expats say they don’t feel fairly represented by the U.S. government, a sentiment that raises questions about taxation without adequate representation.

The 2024 election appears to have made things worse. A majority of expats believe the U.S. has lost ground globally, with 60% saying America’s international reputation declined after the election. More than half (54%) believe U.S. foreign policy toward their host country has gotten worse, while only 31% see any improvement.

These perceptions matter because they affect how expats experience daily life abroad and their ability to represent their home country positively in their new communities. When three out of five expats believe America’s global reputation has declined, it reflects a fundamental shift in how American citizens abroad view their country’s place in the world.

The Growing Appeal of Life Abroad

The survey captures more than just existing expats’ dissatisfaction: it reveals growing interest among Americans still living in the U.S. Over one-third (35%) are considering moving overseas, with 16% planning to do so within the next year.

Their motivations are practical: lower cost of living and desire for travel each motivate 48% of those considering the move. Safety and quality of life concerns drive 46%, while other factors include retirement or lifestyle upgrades (37%), healthcare access (34%), the 2024 election outcome (33%), work opportunities (21%), and inflation (20%).

For existing expats, inflation played a direct role in 10% of their decisions to leave the country. Despite living abroad, most maintain connections to the U.S., with 63% traveling back at least once a year.

Most expats build community through local friends or colleagues (75%), followed by family abroad (45%) and expat social groups (34%). However, their financial challenges extend beyond taxes to include retirement planning (45%), currency fluctuations (40%), and finding reliable financial advisors who understand expat needs (37%).

One surprising finding: 55% of expats don’t know about the IRS Streamlined Filing Procedures program, which helps people who’ve fallen behind on taxes catch up without penalties. Better communication about available resources could potentially reduce some of the stress driving renunciation considerations.

The data reveals Americans living abroad increasingly feel disconnected from their government, burdened by complex tax requirements, and uncertain about the benefits of keeping their U.S. citizenship. As nearly half contemplate cutting their final ties to America, the country faces questions about whether its policies adequately serve citizens living globally.

This survey represents the views of Americans who responded to Greenback Expat Tax Services’ questionnaire and may not reflect the broader population of U.S. expats worldwide. The sample included clients and contacts of a tax service company, which could influence responses toward tax-related concerns. Additionally, expats’ attitudes toward renunciation may fluctuate based on current events, and stated intentions don’t always translate to actual actions.

Methodology: The 2025 Expat Trends Survey was conducted by Greenback Expat Tax Services, surveying 1,145 Americans about living abroad and their views on citizenship, taxes, and foreign banking. Among respondents, 719 were current American expats and 426 were part of the general U.S. population. Among expats, the generational breakdown was: Gen Z (13%), Millennials (51%), Gen X (18%), and Baby Boomers (17%). Data was collected from February 19 to March 20, 2025.