According to a notice published in the Federal Register, the official journal of the US government, the consular fee for renouncing US citizenship will drop from $2,350 to $450 beginning April 13

The United States government has announced a sharp reduction in the fee required for citizens who wish to formally renounce their American nationality, cutting the cost by more than 80 per cent.

According to a notice published in the Federal Register, the official journal of the US government, the consular fee for renouncing US citizenship will drop from $2,350 to $450 beginning April 13.

The reduction effectively reverses the price increase introduced in 2015 and restores the fee to the level set when it was first introduced in 2010.

Officials explained that the decision followed consideration of “the not insignificant anecdotal evidence regarding tax-related difficulties many U.S. nationals residing abroad encounter.”

The Association of Accidental Americans (AAA), a Paris-based non-profit organisation representing Americans living abroad, welcomed the decision, describing it as the result of sustained legal and advocacy efforts.

“This fee reduction is a concrete first victory,” the founder and president of the association, Fabien Lehagre, said in a statement shared on social media.

The United States operates a citizenship-based taxation system, meaning citizens are taxed based on nationality rather than place of residence.

Advocacy groups such as AAA argue that the system creates heavy tax reporting obligations for Americans living overseas and often makes it difficult for them to maintain foreign bank accounts.

Under regulations including the Foreign Account Tax Compliance Act (FATCA), US citizens must disclose detailed information about foreign bank accounts when filing their annual tax returns.

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