Renouncing your US citizenship

The covered expatriate rules apply if:

• Your average annual net income tax liability for the previous 5 years exceeds $201,000 (2025 threshold).
  
  
• Your net worth is $2 million or more at the time of expatriation.
  
  
• You fail to certify full IRS compliance for the preceding 5 years.

If any of these apply, you are classified as a “covered expatriate” and subject to the mark-to-market tax regime under IRC 877A, which generally treats your assets as sold on the day before expatriation, potentially creating taxable gains.

Fees and Planning for Renouncing US Citizenship

In addition to exit tax exposure, you should also be aware of the renounce US citizenship fee, which is currently set by the US Department of State. This fee, combined with the potential burden of expatriation tax, can significantly impact your financial planning.

Whether through Green Card relinquishment or US citizenship renunciation, careful consideration is needed to minimize risks for yourself and your family. For most, obtaining professional tax and legal advice ahead of time is essential to avoid penalties and ensure a smooth transition.

If you are preparing to expatriate, we are here to help guide you through compliance, reduce risks, and protect your financial future.

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📞  Contact us using the form at the bottom of the page to discuss your individual circumstances.