Once considered a rare and symbolic act, renouncing U.S. citizenship has become increasingly common — and, for many Americans living abroad, a practical decision. A new Boundless report reveals that annual renunciations have surged from an average of just 200–400 cases before 2009 to a record high of 6,705 in 2020, with numbers remaining elevated ever since.
The primary drivers of rising U.S. citizenship renunciations are complex international tax laws and foreign banking restrictions, but other factors also play a role in the growing trend.
Here are the key findings:
- Trends: While still relatively rare overall, the consistent rise in citizenship renunciations since 2009 indicates a long-term shift rather than a short-term anomaly.
- Motivations: The trend is primarily driven by a mix of legal, financial, and logistical challenges related to the Foreign Account Tax Compliance Act (FATCA) — enacted in 2010 but fully implemented beginning in 2014. Growing disillusionment with U.S. policy and politics also plays a role in recent renunciation trends.
- Demographic Insights: Most individuals giving up their citizenship are long-term expats living abroad, middle-income earners, and dual nationals who already possess citizenship in another country. A notable and expanding group includes “accidental Americans,” people unaware of their U.S. citizenship until flagged by overseas financial institutions
- Global Context: Among other developed countries, the U.S. ranks sixth in renunciation rates relative to population and second in total renunciations. Unlike other countries — where military service or lack of emotional ties to the country drive renunciations — U.S. renunciations are largely driven by complex tax and banking rules applied to U.S. citizens living abroad.
- Broader Implications: The ongoing rise in citizenship renunciations highlights major policy concerns, especially in areas like tax enforcement, foreign banking compliance, and the changing value proposition of American citizenship in a globalized world.
- Renunciation Data Delays: Official U.S. renunciation statistics are typically published 12 to 18 months after the fact due to administrative processing and agency cross-referencing. This means data released in 2025 will mostly reflect renunciations from 2023 or early 2024. As a result, any shift in renunciation numbers during Trump’s first year back in office likely won’t be visible in the public record until 2026.
For many Americans living abroad, renouncing U.S. citizenship is less about politics and more about avoiding burdensome tax and banking rules. As more people live and work across borders, the U.S. may need to reevaluate whether its policies support or hinder the lives of its citizens overseas.
Read the full report here.