Legal Matters

US citizens who move abroad remain US citizens, with the full rights and obligations that status carries. Under the Immigration and Nationality Act (INA § 349, 8 U.S.C. 1481), citizenship is not lost by living overseas, obtaining foreign residency, or even naturalizing in another country; loss of nationality occurs only when a statutory act (such as foreign naturalization or a formal oath of renunciation) is performed voluntarily and with the intent to relinquish US nationality, as documented by the State Department's Bureau of Consular Affairs (travel.state.gov). US law permits dual nationality and does not require choosing one citizenship over another, but dual nationals must enter and leave the United States on a US passport, and all citizens abroad remain subject to US law in areas such as taxation, which applies to worldwide income regardless of residence. Civic and legal rights travel with the citizen. The Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA, 1986) guarantees overseas citizens the right to register and vote absentee in federal elections in the state where they last resided; the Federal Voting Assistance Program (FVAP.gov) administers the process, states must transmit ballots at least 45 days before federal elections, and the Federal Write-In Absentee Ballot serves as an emergency backup. On the planning side, US citizens abroad face two overlapping legal systems: the US estate and gift tax regime (which reaches worldwide assets, with a federal exemption of $13.99 million in 2025, rising to $15 million in 2026 under 2025 legislation) and the succession, forced-heirship, and property rules of the country of residence. Instruments executed for one jurisdiction — wills, trusts, and powers of attorney — are not automatically effective in another, which is why cross-border planning commonly involves separate situs wills, international wills under the 1973 Washington Convention, and locally recognized (often apostilled) powers of attorney. Formal renunciation is a distinct, consequential process: it must be performed in person before a US consular officer abroad, results in a Certificate of Loss of Nationality, and is irrevocable in almost all cases. A State Department final rule cut the renunciation fee from $2,350 to $450 effective April 13, 2026, following a rulemaking begun in 2023. Renunciation does not erase prior tax obligations — the IRS expatriation tax rules (IRC § 877A) can impose a mark-to-market 'exit tax' on covered expatriates, and Form 8854 must be filed to certify five years of tax compliance. This overview presents factual requirements from official sources and is not legal advice; individual situations call for qualified cross-border legal and tax counsel.

Key Points

• 1US citizenship is not lost by living abroad or naturalizing elsewhere: under INA § 349 (8 U.S.C. 1481), loss of nationality requires a statutory expatriating act performed voluntarily with intent to relinquish, per the State Department's Bureau of Consular Affairs (travel.state.gov).
• 2Dual nationality is permitted under US law, but dual citizens must use their US passport to enter and depart the United States and remain subject to US obligations — including tax filing on worldwide income — while also owing obligations to their other country of nationality (travel.state.gov).
• 3Overseas citizens vote under UOCAVA: submit the Federal Post Card Application (FPCA) to the election office of the state of last US residence (FVAP recommends re-submitting each January); states must send ballots at least 45 days before federal elections, and the Federal Write-In Absentee Ballot (FWAB) is the backup if a requested ballot doesn't arrive (FVAP.gov; justice.gov UOCAVA overview).
• 4US estate and gift tax follows the citizen worldwide: the federal estate tax exemption is $13.99 million for 2025 deaths (set at $15 million, indexed, from 2026), but the country of residence may impose its own inheritance tax and forced-heirship rules on the same assets, and US-style trusts may be taxed unfavorably or unrecognized in civil-law countries.
• 5A single US will may not govern foreign assets: the 1973 Washington Convention 'international will' format is recognized by participating countries, and many expats use separate, carefully coordinated situs wills for each country where they hold property to avoid conflicting revocation clauses.
• 6A US power of attorney is often not accepted abroad: many countries require a locally drafted POA, notarization, and an apostille under the Hague Apostille Convention, and some (particularly civil-law jurisdictions) do not recognize US-style durable powers of attorney at all.
• 7Renunciation is in-person, paid, and irrevocable: it requires an appointment before a consular officer abroad (forms DS-4080/DS-4081), the fee dropped from $2,350 to $450 effective April 13, 2026, and the resulting Certificate of Loss of Nationality is final absent successful appeal — it can leave a person stateless and does not extinguish prior tax liabilities (travel.state.gov; 7 FAM 1260).
• 8IRS exit tax applies to 'covered expatriates' (2025 thresholds): average annual net income tax liability above $206,000 for the prior 5 years, net worth of $2 million or more, or failure to certify 5 years of tax compliance triggers a mark-to-market tax on worldwide assets with an $890,000 gain exclusion for 2025, reported on Form 8854 (IRC § 877A; irs.gov).