US expats renounce citizenship at record rates in Switzerland

The US embassy in Bern, Switzerland’s capital, has seen an influx in appointments as the number of American expats wanting to renounce their citizenship has surged recently.

Record numbers book citizenship renunciation appointments

According to the Aargauer Zeitung, reported by 20 Minuten, appointments to renounce citizenship at US embassies in Europe “are piling up”. The same has been felt in Bern, where “several thousand” expats per year are booking renunciation appointments at the US embassy to give up their citizenship. This has increased from just a few hundred per year in the 2000s.

The renunciation fee for US citizens has recently dropped significantly in price, from 2.350 US dollars, one of the highest in the world, to 450 dollars. The cost, however, can still be much higher if someone chooses to get legal advice, notes Aargauer Zeitung. With so many more people booking appointments, wait times at US embassies in Switzerland and the rest of Europe can stretch to around a year.

Why US expats are rushing to renounce their citizenship

There are two possible reasons for the increasing number of US citizens giving up their passports. The first is the FATCA (Foreign Account Tax Compliance Act), introduced in the US in 2014, which means that US citizens are subject to US tax regardless of where they live. For US citizens living in Switzerland, opening a Swiss bank account can be challenging due to the extra rules and complexities. Renouncing citizenship would relieve American expats of this extra tax burden.

Along with tax reasons, “political reasons are paramount”, continues 20 Minuten. Many of US President Donald Trump’s international policies are creating global uncertainty, from tariffs to a global energy crisis, and some are even concerned that “democratic institutions could be damaged”. US citizens living in Switzerland who plan to stay for a long time may feel that now is the right time to give up their passports.