Why thousands of Americans are giving up citizenship and leaving the US
Thousands of Americans are giving up their citizenship due to tax burdens, personal choices, and political concerns.
One such person is Erin Klatt, who moved from the United States to New Zealand on a working holiday visa a decade ago. Within months of arriving, she felt the country was the right place to build her future.
Klatt left the US in 2016 for personal and political reasons. She later found work in New Zealand’s dairy farming sector and eventually settled there permanently.
While working in New Zealand, she met her English husband. The couple became New Zealand citizens together in May 2025.
Soon after gaining New Zealand citizenship, Klatt decided to formally renounce her US citizenship. Before the fee was reduced, she paid $2,350 to complete the legal process.
Klatt said she never felt strongly connected to the United States. She also expressed disappointment with the country’s political direction in recent years.
According to organizations tracking expatriations, the number of Americans giving up citizenship is increasing. Data compiled from IRS reports shows 4,889 people were listed in 2025, the highest level since 2020.
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Experts believe the real number could be even higher. Some advisers say not all cases appear in official reports.
The process of renouncing US citizenship is lengthy and formal. Applicants must complete paperwork and appear before a US consular officer outside the United States.
Klatt said it took months before she received a response after starting the process. She eventually attended an appointment at the US Consulate in Auckland and completed the oath of renunciation.
The fee for renouncing citizenship has since been reduced from $2,350 to $450. Despite the lengthy process, Klatt says she has no regrets about her decision.
Tax obligations are one of the biggest reasons many Americans choose to renounce citizenship. US citizens living abroad must still file tax returns and may have tax responsibilities on worldwide income.
Many people affected are dual citizens or so-called “accidental Americans.” These are individuals who gained US citizenship through birth or family connections but may have spent little or no time living in the country.
Experts say a large number of renunciation inquiries are linked to the Foreign Account Tax Compliance Act, commonly known as FATCA. The law requires Americans abroad to report financial information and comply with US tax rules regardless of where they live.
Organizations assisting expatriates report growing interest from Americans across Europe and other regions. They expect the trend to continue in the coming years.
More Americans appear to be questioning the benefits of keeping US citizenship while living overseas. Tax rules remain a major reason behind many decisions. Personal and political factors are also influencing a growing number of people to seek a different future abroad.
