Why Americans Are Giving Up Their Citizenship

By Tax assistant

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Why Americans Are Giving Up Their Citizenship

While millions around the globe risk everything to gain U.S. citizenship, a growing number of Americans living abroad are choosing to give it up. This surge in renunciations is no longer just about taxes; it’s increasingly driven by profound political frustration.

A 2025 survey suggests nearly half of U.S. expatriates are considering renunciation, with the decision now split between financial headaches and deep political dissatisfaction.

1. Political Frustration: A Breaking Point

Immigration lawyers report that political dissatisfaction, once a rarity, is now a leading reason for the “Great Divorce.” For many expats, they simply no longer recognize the country they left behind.

Key political motivators include:

  • Extreme Polarization: Concerns over the rise in political extremism, partisan conflict, and toxic rhetoric.
  • Democratic Erosion: Fear regarding the erosion of voting rights and the deepening cultural divides.
  • Tipping Points: Events like the January 6 Capitol riot and the increasing frequency of mass shootings have served as final breaking points. The news of a presidential re-election, for example, prompted one expat to immediately begin the renunciation process, writing to the embassy, “I want a divorce.”

This sentiment is so strong that after the November presidential election, one Canadian lawyer reported a 300% surge in inquiries from Americans looking for a way to leave the U.S.

2. The Tax Trap: Global Taxation

The historical and persistent driver remains the U.S.’s unique tax system. The U.S. is one of the few countries that taxes its citizens on income earned anywhere in the world, regardless of where they live.

This system creates significant financial and logistical pain:

  • Burdensome Filings: Americans abroad must file annual U.S. tax returns, leading to potential double taxation and the threat of penalties.
  • Bank Restrictions: Due to stringent U.S. reporting laws, many foreign banks refuse to open accounts for American citizens or charge them extra fees, making life logistically difficult for expats.

The Cost of Giving Up

Renouncing citizenship is not an easy choice. It’s a complicated, expensive, and irreversible process. Expats also lose the smooth entry they once enjoyed, potentially facing greater scrutiny when re-entering the U.S. as foreign nationals.

Despite the costs, the growing number of Americans choosing to make the final break signals a deep, structural discontent with the current direction of the country.

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