Post-Election Trends: US Expats Eye Citizenship Renunciation

At Greenback Expat Tax Services, we understand the complexities of expatriate life and the decisions that come with it—including the choice to renounce US citizenship. With years of experience assisting expats in navigating financial and legal challenges, we’re uniquely positioned to shed light on the factors driving this trend.

Following the 2024 presidential election, a number of American expats are considering renouncing their citizenship. This decision, often influenced by financial, political, and social factors, reflects an evolving relationship between expats and their home country. Drawing from a survey of 450 expats, we explore the motivations, generational differences, and obstacles they face, providing valuable insights into this critical topic.

Why Some US Expats Plan to Renounce Their Citizenship

• US expats planning to renounce their citizenship, by political affiliation:
  • Democrat: 40%
  • No affiliation: 25%
  • Independent: 21%
  • Republican: 4%
• US expats planning to renounce their citizenship, by generation (of those who intend to renounce citizenship):
  • Gen Z: 38%
  • Millennials: 36%
  • Gen X: 17%
  • Baby boomers:9%
• US expats planning to renounce their citizenship, by industry:
  1. Education
  2. Tech
  3. Hospitality
• Top policies driving American expats away by generation:
  • Baby boomers: Free speech and protest rights (46%)
  • Gen X: Immigration and foreign relations concerns (46%)
  • Millennials: Social policies affecting LGBTQ+ rights, reproductive rights, and gender equality (46%)
  • Gen Z: Social policies affecting LGBTQ+ rights, reproductive rights, and gender equality (48%)
• Primary reasons expats previously considered renouncing their US citizenship but changed their mind:
• Sacrifices US expats would consider making to renounce US citizenship:
  • Losing access to US healthcare: 34%
  • Letting go of US cultural ties: 29%
  • Paying potentially higher taxes in a new country: 28%
  • Forfeiting career opportunities tied to US citizenship: 26%
  • Losing access to US-based retirement accounts: 24%
  • Limiting family visits to the US: 21%
  • Giving up the right to sponsor family members for US immigration: 20%
  • Dealing with complications due to international banking: 19%
  • Missing significant family events due to travel restrictions: 18%
  • Paying a substantial Exit Tax: 17%
  • Risking residency instability abroad: 14%

Financial and Emotional Barriers to Renouncing US Citizenship

• 1 in 5 Gen Z expats are concerned about the financial costs associated with renouncing US citizenship.
• 35% of Gen Z expats do not feel financially prepared to cover the Exit Tax and other renunciation costs.
• Nearly 7 in 10 Gen Z and Millennial expats feel they are better able to achieve the “American Dream” abroad than in the US.

Methodology

We surveyed 450 American expats to examine their reactions to a second Donald Trump presidency. The average age was 35; 58% of respondents were women, 37% were male, and 5% were non-binary. Generationally, 6% were baby boomers, 16% were Gen X, 42% were millennials, and 36% were Gen Z. Any percentages in this study that don’t total 100 exactly are due to rounding.

About Greenback Expat Tax Services

Empowering US expatriates with peace of mind, Greenback Expat Tax Services offers comprehensive tax preparation and consulting services designed for the unique needs of Americans abroad. Our team of seasoned professionals leverages advanced technology to deliver accurate, timely, and worry-free tax solutions.

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