Renouncing US citizenship

[Straightpoop 549]

The US State Department will shortly announce in the 28 August 2014 number of the Federal Register its intention to increase the fee it charges Americans to renounce their US citizenship from the current $450 to $2,350.

 

As justification for this rather extraordinary jump, the notice cites several factors (some of which are clearly bogus) but one of which clearly is not: "Since [the current $450 was set in 28 June 2010], demand for the service has increased dramatically.

 

So, if you've been dawdling about getting free of Uncle Snoopy and expect to live off the reservation permanently, CLNs (Certificates of Loss of Nationality] are going to get real expensive, real soon.

[yourkeau 6,978]

That's good news for those who want to get German citizenship and keep American: high fee can be a valid justification for authorities to allow this.

[kaffeemitmilch 916]

Is this high enough???

 

Honestly, depriving someone of an easy way to renounce citizenship is against SOME international law, isn't it?

[Straightpoop 549]

@yourkeau

 

You make an excellent point.

 

For those for whom the new fee exceeds their credit card or Eurocard limit, it might well be regarded by a sympathetic official as hardship grounds for not requiring abandonment of US citizenship before becoming eligible for German citizenship.

[sosarx 1,661]

Your credit card limit? A hardship? .

[Guest]

 

The US State Department will shortly announce in the 28 August 2014 number of the Federal Register its intention to increase the fee it charges Americans to renounce their US citizenship from the current $450 to $2,350.

can you provide a link to that info SP?

[NoBullJim 3,682]

 

can you provide a link to that info SP?

 

There's only ONE SP on this forum. I would call the OP SPoop, or something other than SP, that is reserved for our beloved member Spiderpig. Kidding of course.

[circuits 187]

The economic hardship has to be >10,000€ in order to be considered eligible for retaining your previous citizenship. I'll dig up the relevant law if anyone needs to see it.

[Isenburg Runner 18]

I renounced my American citizenship back in 2010 and took the German citizenship, because my wife and kid didn't want to go to the states. And I do not remember paying more than 150 US Dollars. I don't remember what I paid, but it wasn't anywhere near 450 dollars.

[garyh911 130]

 

The economic hardship has to be >10,000€ in order to be considered eligible for retaining your previous citizenship. I'll dig up the relevant law if anyone needs to see it.

 

Please do. I'm looking into this currently.

Thanks

[kaffeemitmilch 916]

The link to the Federal Register. Scroll all the way down: http://diplopundit.net/2014/08/27/renunciation-of-u-s-citizenship-about-to-get-422-more-expensive-from-450-to-2350/

 

Too bad this still isn't high enough...

[Hazza 5,458]

 

The economic hardship has to be >10,000€ in order to be considered eligible for retaining your previous citizenship. I'll dig up the relevant law if anyone needs to see it.

 

This is incorrect. The fee could very well be enough to allow US citizens to take on German citizenship without losing their US citizenship.

 

As long as the fee is more than a month's net income or at least €1280, it is considered unreasonable to expect someone to pay that much to renounce their original citizenship.

 

Details here

[PLS 914]

 

I renounced my American citizenship back in 2010 and took the German citizenship, because my wife and kid didn't want to go to the states. And I do not remember paying more than 150 US Dollars. I don't remember what I paid, but it wasn't anywhere near 450 dollars.

 

I did it in the beginning of 2010 and at the time it was free, so maybe you did it before the fee. I remember hearing that the fee was coming in and deciding to go to Frankfurt with the first possible appointment to avoid more costs of naturalization. They must have realized people didn't want to deal with them getting more nosy about their finances abroad so are raising the fee now.

 

 

This is incorrect. The fee could very well be enough to allow US citizens to take on German citizenship without losing their US citizenship.

 

As long as the fee is more than a month's net income or at least €1280, it is considered unreasonable to expect someone to pay that much to renounce their original citizenship.

 

Details here

 

Well, it says that it is more than your monthly income, but at least €1280. So you would have to make €1783 brutto a month (~$2350 at the current exchange rate) or less for that to be possible with this new fee. I am sure that could apply to some Americans, but a lot of people that are working in highly qualified positions will be well above that and still will have to do it.

[Straightpoop 549]

@kaffeemitmilch

 

FWIW Article 15 of the UN's Universal Declaration of Human Rights addresses the issue of a right to nationality and the right to abandon same.

 

I am not sure I understand why you feel the fee should be set even higher. Care to explain?

[Straightpoop 549]

@PLS

 

The $450 fee was inaugurated in June 2010 by notice in the Federal Register. I don't know when the effective date was but obviously you got in before that time.

 

By interesting coincidence, the FATCA legislation that is prompting/motivating many US expats to consider renunciation/relinquishment was passed just a couple months earlier in March 2010.

 

The demand for a CLN has obviously been even greater than they estimated and now they are boosting the price accordingly.

 

Who says no one in the State Department understands capitalism?

[Straightpoop 549]

@Hazza

 

Thank you for that very useful link.

 

It will be interesting to see what effect, if any, the new fee will have on the current €1,280 threshold.

 

According to an informal survey I have seen posted, the new US rate will be the first - and only - official renunciation rate to exceed that €1,280 threshold.

 

According to the Federal Register, the fee will take effect on 6 September 2014 but will not become permanent until after the "comment period" has expired on 21 October 2014. Theoretically, of course, State could change the fee based on the comments(and/or outside political resistance)it receives in response to the interim notice.

 

This could indeed represent a golden opportunity for US citizens to acquire dual US/German nationality.

 

My guess is that the German government should have no qualms about it either. Netting a few new "top quality" German tax-paying voters can hardly be deemed not to be in Germany's interest.

[yourkeau 6,978]

 

Well, it says that it is more than your monthly income, but at least €1280. So you would have to make €1783 brutto a month (~$2350 at the current exchange rate) or less for that to be possible with this new fee. I am sure that could apply to some Americans, but a lot of people that are working in highly qualified positions will be well above that and still will have to do it.

 

True but still it's now like going from private to public health insurance: ask the boss to reduce income for a couple of months :)

[Straightpoop 549]

Correction:

 

The State Dept. has issued a press release advising that the start date for the enhanced fee will be 12 September rather than the 6 Sept date given in the Interim Notice:

 

http://m.state.gov/md231128.htm

[kaffeemitmilch 916]

 

@kaffeemitmilch

 

I am not sure I understand why you feel the fee should be set even higher. Care to explain?

 

I was referring to circuits' claim that this new fee wouldn't be high enough to be allowed to RETAIN US citizenship.

 

I absolutely think it's way to high, and people should be allowed to give up nationality for free, or at a much more reasonable cost than this highway robbery.

[westvan 9,702]

 

I did it in the beginning of 2010 and at the time it was free, so maybe you did it before the fee.

 

Yes, Wikipedia says it was free until July 2010.