Why Are Americans Renouncing Citizenship

Irene Clatt, an American citizen who has built her life in New Zealand, renounced her U.S. citizenship after ten years of residence in the country. She paid a fee of $2,350 for renunciation and took the legal oath required. This step is part of a growing trend among Americans living abroad, as the organization "Americans Overseas" has recorded a significant increase in the number of people renouncing their citizenship, reaching approximately 4,889 cases in 2025—the highest number since 2020. Financial reasons are among the main motivating factors, especially due to the U.S. tax law that requires citizens to report their worldwide income. Personal identity and a desire to sever ties with America also play a role, with some choosing to completely disconnect from the country. Renouncing U.S. citizenship involves complex legal procedures, including the submission of tax returns for previous years, often accompanied by changes in personal identity and beliefs.

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