Where Americans Actually Go After Renouncing: The Top Destination Countries

Every year, thousands of Americans walk into a consulate, raise their right hand, and formally sever ties with the country that issued their passport. In 2024, nearly 5,000 people did exactly that — the third-highest total on record. (If you’re weighing the decision yourself, start with our honest take on renouncing in 2026.)

But here’s the question nobody in the renunciation guides seems to answer: where do they actually go?

The US government doesn’t publish country-by-country breakdowns. There’s no neatly formatted IRS spreadsheet showing “487 to Canada, 312 to the UK, 89 to New Zealand.” The data has to be pieced together from consular processing volumes, expat surveys, immigration statistics, and the occasional leaked State Department memo.

I’ve done that work. And the picture that emerges is more interesting than you’d expect.

The Numbers: Renunciation Is Accelerating

Before we get to where people go, let’s look at how many are leaving. The Federal Register publishes quarterly lists of individuals who have renounced, and the trend is unmistakable:

Year	Renunciations	Change
2010	1,534	FATCA signed into law
2015	4,279	Fee raised to $2,350
2016	5,409	Previous record
2020	6,705	All-time record
2022	2,816	COVID backlog clears
2024	4,820	+48% year-over-year
2025	~4,935*	On pace with 2024

*2025 estimate based on Federal Register page counts across all four quarters (Q1: ~1,285; Q2: ~1,100; Q3: ~1,600; Q4: ~950). Important caveat: these numbers run 12-18 months behind reality. The names published in 2025 mostly reflect renunciations that occurred in 2023-2024. The post-election surge in actual 2025 renunciations won’t appear in the Federal Register until 2026-2027.

Before 2009, annual renunciations averaged 200-400. The explosion tracks directly with FATCA’s passage and enforcement. The 2020 spike was partly driven by people rushing to renounce before COVID permanently closed consulate slots.

And it’s not just the hard numbers. Greenback’s 2025 Expat Trends Survey of over 1,100 Americans found that 49% of expats are considering renouncing — up from 30% the year before. That’s a 63% jump in a single year.

Where 5.4 Million American Expats Actually Live

An estimated 5.4 million Americans live abroad. Here’s where the largest communities are:

Rank	Country	Estimated US Expats
1	Mexico	823,000+
2	Canada	256,000+
3	United Kingdom	243,000+
4	Germany	152,000+
5	Australia	114,000+
6	Israel	97,000+
7	France	59,000+
8	Switzerland	42,000+
9	Ireland	36,000+
10	New Zealand	32,000+

Mexico’s lead is enormous — one in four American expats lives there. But the countries where people renounce don’t perfectly match where they live. Canada and the UK process the most renunciation appointments by volume, while Switzerland — despite a smaller expat community — consistently ranks in the top three for renunciations, thanks to FATCA banking pressure that hit Swiss institutions earliest and hardest.

The Big Five: Where Most Renunciants End Up

1. Canada — The Obvious Next Door

Why they go: Proximity, shared language, and the world’s longest undefended border make Canada the path of least resistance. Many renunciants here are “accidental Americans” — born in the US to Canadian parents, raised entirely in Canada, who discover their US tax obligations decades later when a bank asks about their birthplace.

The tax picture: Combined federal and provincial rates top out between 44.5% and 54.8%, depending on the province. Higher than the US on paper — but universal healthcare, parental leave, and no medical bankruptcy risk change the math considerably.

Cost of living: 8.4% below the US average. Outside Toronto and Vancouver, the gap widens.

Healthcare: Universal single-payer. Ranked 4th globally in the CEOWORLD Health Care Index. Wait times are the perennial complaint, but nobody loses their house because they got cancer.

The path in: Express Entry (points-based, no investment required) is the main route. Americans can also access Provincial Nominee Programs. Dual citizenship is fully permitted.

The catch: Canada imposes its own “departure tax” — a deemed disposition of all assets at fair market value — if you ever leave. You’re trading one exit tax system for another.

2. United Kingdom — The Financial Center

Why they go: London’s financial sector draws a particular type of American expat — high earners who discover that FATCA makes their professional lives nearly unworkable. UK banks have been among the most aggressive in restricting US-person accounts.

The tax picture: Basic rate 20%, higher rate 40%, additional rate 45%. No state-level income taxes. The Foreign Tax Credit and FEIE ($130,000 exclusion) eliminate most US liability for expats before renunciation.

Cost of living: London is brutally expensive. The rest of the UK is surprisingly affordable — and the NHS means healthcare isn’t an out-of-pocket concern.

Healthcare: The NHS. Free at point of use, funded by taxation. Covers GP visits, hospital care, and prescriptions. Doesn’t cover dental or optical, which is why every British person you’ve ever met has opinions about their dentist.

The path in: The UK closed its investor visa (Tier 1) in 2022. Current routes are the Skilled Worker Visa (requires employer sponsorship, minimum salary GBP 38,700+), the Global Talent Visa, or the Ancestry Visa if you have a UK-born grandparent.

The Greenback factor: 53% of American expats in the UK are considering renunciation — the second-highest rate of any country surveyed.

3. Australia — The Quality of Life Play

Why they go: Consistently top-10 in every quality of life ranking that exists. The appeal is straightforward: good weather, high wages, universal healthcare, and a culture that values work-life balance in a way that makes Americans quietly furious about everything they accepted as normal.

The tax picture: Progressive rates up to 45%, plus a 2% Medicare levy. But Australia offers a 50% capital gains discount on assets held longer than 12 months — making the effective top rate on long-term gains roughly 23.5%.

Cost of living: Nearly identical to the US (Numbeo index 67.93 vs. 68.77). Sydney and Melbourne are significantly more expensive; Hobart and Adelaide are bargains.

Healthcare: Medicare Australia — universal for citizens and permanent residents. Covers public hospitals and GP visits. Pharmaceutical Benefits Scheme heavily subsidizes medications. Ranked 3rd globally in the CEOWORLD index.

The path in: The Significant Investor Visa requires AUD 5 million in compliant investments. Skilled workers use the points-based system. Dual citizenship has been fully permitted since 2002.

The renunciation factor: 47% of American expats in Australia are considering renouncing.

4. Israel — The Aliyah Pipeline

Why they go: The Law of Return grants automatic citizenship to anyone with a Jewish parent or grandparent. No visa applications, no investment minimums, no points calculations. Walk into the Jewish Agency, prove your lineage, and you’re on a plane within months.

The tax picture: Top rate of 50% (47% bracket plus 3% surtax on high earners). Capital gains at 25%. But here’s the hook: new immigrants get a 10-year tax exemption on all foreign-source income. US pensions, investment accounts, rental income from American property — all untaxed by Israel for the first decade.

Cost of living: 15.8% above the US average. Tel Aviv is punishingly expensive. The periphery is more manageable.

Healthcare: Universal via four competing health funds. Ranked 3rd globally in the Global Health Index with a score of 97.1. Mandatory enrollment, comprehensive coverage.

The path in: Aliyah (Law of Return) is the main route. Automatic citizenship, financial absorption assistance, and language training included. For non-Jewish Americans, the B/5 Investor Visa has no minimum investment threshold but requires maintaining a business for 3-4 years.

The unique angle: Many Americans make aliyah, settle in, and only then discover the US filing burden. The combination of Israeli citizenship, a 10-year tax holiday on foreign income, and the sheer friction of dual-country compliance makes renunciation attractive in year 8 or 9.

5. Switzerland — Where the Money Goes

Why they go: Banking, finance, and an extraordinarily high standard of living. Switzerland was ground zero for FATCA enforcement — the UBS tax evasion scandal in 2009 preceded FATCA itself and made Swiss banks hyper-cautious about US clients. Americans in Switzerland face account closures and service restrictions more than almost anywhere else.

The tax picture: A tri-layered system (federal, cantonal, communal) with combined rates ranging from 22% in low-tax cantons like Schwyz to 43% in Geneva. No capital gains tax on stocks and securities for individuals. The real play for the wealthy is lump-sum taxation (forfait fiscal): you pay tax on your living expenses rather than your actual income, with a minimum annual contribution of CHF 200,000.

Cost of living: The highest on this list. Numbeo’s cost of living index puts Switzerland at 110.74 — 61% above the US average. But salaries are also among the world’s highest, and the quality of life is extraordinary.

Healthcare: Mandatory private insurance (LAMal). Among the best quality in the world, but not cheap — expect CHF 400-600/month in premiums.

The path in: Lump-sum taxation gets you a B permit without needing employment. Americans get an expedited C permit after just 5 years (most nationalities wait 10). Dual citizenship has been permitted since 1992.

The renunciation pipeline: Switzerland consistently ranks in the top 3 for renunciation processing volume, despite a relatively small expat community. The banking pressure is that intense.

The Rising Stars

New Zealand — The Hottest Destination Right Now

New Zealand has emerged as the it destination for Americans looking to exit. The numbers are staggering: after the government overhauled its Golden Visa program in April 2025 — dropping the minimum investment from NZ$15 million to NZ$5 million and slashing the residency requirement from 3 years to 3 weeks — 573 applications flooded in within the first months, compared to just 116 in the prior two and a half years.

Nearly 40% of those applicants are American — the largest nationality by far.

The appeal is obvious: no capital gains tax, a top income tax rate of just 39%, a cost of living 12% below the US, and a quality of life ranking that consistently hits the global top 12. And unlike Singapore (which forbids dual citizenship), New Zealand lets you keep your other passports.

Portugal — The Budget European Dream

Portugal has become the #1 country Americans say they want to move to, according to a survey of over 116,000 Americans. The D7 visa for retirees and passive-income earners requires just EUR 760/month — roughly $830. The cost of living is 29% below the US average, making it the most affordable option in Western Europe.

The original Non-Habitual Resident (NHR) tax program ended in early 2025, but its replacement — IFICI (sometimes called NHR 2.0) — offers a 20% flat tax rate for qualifying researchers, tech workers, and innovators. Citizenship is available after just 5 years of residency, one of the fastest timelines in Europe.

Costa Rica — The Territorial Tax Haven

Costa Rica uses a territorial tax system, meaning it only taxes income sourced within its borders. Your US investments, pensions, and foreign rental income? Untaxed. The top income tax rate is just 25%, capital gains are taxed at 15%, and the Pensionado retirement visa requires only $1,000/month in pension income.

It ranked #6 on the World Happiness Report — the highest any Latin American country has ever placed. And the cost of living is 23% below the US.

The Comparison: How They Stack Up

Here’s the data that actually matters when you’re choosing where to build a new life:

Tax Burden

Country	Top Income Tax	Capital Gains	Wealth Tax
Singapore	24%	0%	No
Costa Rica	25%	15%	No
New Zealand	39%	0%	No
Mexico	35%	Up to 35%	No
Australia	47%	~23.5% effective	No
United Kingdom	45%	18-24%	No
Switzerland	22-43%	0% (stocks)	Yes (cantonal)
Canada	44.5-54.8%	~27.4% effective	No
Israel	50%	25%	No
Germany	~47.5%	~26.4%	No
France	~55% effective	30% flat	Real estate only

Three countries with zero capital gains tax on stocks: Singapore, New Zealand, and Switzerland. If you’ve built wealth in equities and plan to sell after renouncing, that’s a life-changing tax difference.

Cost of Living and Quality of Life

Country	Cost vs. US	Happiness Rank	Healthcare Index
Mexico	38% cheaper	#10	72.28
Portugal	29% cheaper	#60	72.03
Costa Rica	23% cheaper	#6	64.80
New Zealand	12% cheaper	#12	68.22
Canada	8% cheaper	#18	68.64
United Kingdom	~Same	#23	72.69
Germany	~Same	#22	72.44
Australia	~Same	#11	71.97
Israel	16% more	#8	73.41
Switzerland	61% more	#13	71.21

The Netherlands deserves a mention here despite not being a top-5 destination: it ranks #5 in world happiness and has the highest healthcare index score (81.49) of any country on this list. And the DAFT visa — the Dutch American Friendship Treaty — lets Americans establish residency with a business investment of just EUR 4,500. It’s one of the cheapest and easiest residency paths in Europe, and it’s exclusively available to Americans.

Residency: How Easy Is It to Get In?

Country	Easiest Path	Minimum Cost
Israel	Aliyah (Law of Return)	Free
Netherlands	DAFT Treaty visa	EUR 4,500
Portugal	D7 passive income visa	EUR 760/month
Costa Rica	Pensionado visa	$1,000/month
Mexico	Temporary resident visa	$4,185/month income
Germany	Freelancer visa	No minimum
Canada	Express Entry	No investment required
New Zealand	Golden Visa	NZ$5 million
Australia	Significant Investor Visa	AUD 5 million
Switzerland	Lump-sum taxation	CHF 200,000/year tax

The range is enormous. Israel and the Netherlands sit at one end — essentially letting Americans walk in with minimal financial requirements. Switzerland and Singapore sit at the other, where residency is effectively a luxury purchase.

Dual Citizenship: Can You Hold Both?

This matters less after renouncing, but it matters enormously during the transition — most people want to secure new citizenship before giving up the old one.

Country	Dual Citizenship?	Notes
Canada	Yes	No restrictions
UK	Yes	Since 1949
Australia	Yes	Since 2002
Israel	Yes	Integral to aliyah
Switzerland	Yes	Since 1992
New Zealand	Yes	No restrictions
Germany	Yes (new)	Changed June 2024 — previously required renouncing other citizenships
France	Yes	Since 1973
Portugal	Yes	Fast track — citizenship in 5 years
Netherlands	Restricted	Generally requires renouncing other citizenship
Singapore	No	Strictly prohibited for adults

Germany’s 2024 change is significant. For decades, Americans naturalizing in Germany had to give up their US citizenship first — creating an agonizing chicken-and-egg problem. That barrier is now gone.

The FATCA Factor: Every Country Reports to the IRS

Here’s something most destination guides won’t tell you: every single country on this list shares your bank account information with the IRS. All 14 have signed FATCA Intergovernmental Agreements (IGAs). Your foreign bank reports to its local tax authority, which forwards your data to the IRS.

This is precisely why renunciation numbers keep climbing. Moving abroad doesn’t end the reporting. Only renunciation does.

The countries where FATCA banking pressure is most acute — where people report accounts being closed or restricted simply for being American — are Switzerland, the UK, and France. India reportedly has the most severe restrictions, which may explain why a stunning 93% of American expats in India say they’re considering renunciation.

The Famous Ones Who Left

Person	Where They Went	Why
Boris Johnson	UK (born NYC)	IRS demanded capital gains tax on his London home sale
Eduardo Saverin	Singapore	Estimated $100M+ in tax savings on Facebook shares
Tina Turner	Switzerland	Became Swiss citizen in Zurich
Jet Li	Singapore	Became Singaporean citizen
Bobby Fischer	Iceland	Renounced after legal troubles

Boris Johnson’s case is particularly instructive. He was born in New York, left as a toddler, became Mayor of London, and only renounced his US citizenship in 2016 after the IRS demanded capital gains tax on the sale of his London home. He called it “outrageous.” That word captures the sentiment of roughly 300,000 “accidental Americans” across Europe who are in similar situations.

What the Data Actually Says

If I had to distill three years of renunciation data, survey results, and immigration statistics into a single observation, it would be this:

The typical renunciant is not a billionaire fleeing taxes. Only about 1 in 15 people who renounce actually trigger the exit tax as a “covered expatriate” (net worth over $2 million or average annual tax liability above $206,000). The vast majority are middle-income dual citizens — teachers in Toronto, engineers in Munich, small business owners in Sydney — who got tired of paying $2,000-$5,000 per year in tax preparation fees to report income on which they owe the US exactly zero dollars.

They’re not leaving America. Most of them left years or decades ago. They’re just making it official.

And increasingly, they’re not doing it alone. The 2025 survey found that 71% of expat parents with children under 18 have considered renunciation — the highest of any demographic. The next wave won’t be retirees simplifying their estates. It’ll be young families choosing clean starts.

The destination they choose depends on what they’re optimizing for. Low taxes? Singapore or New Zealand. Low cost of living? Mexico or Portugal. Best healthcare? The Netherlands or France. Easiest entry? The Netherlands’ DAFT visa or Costa Rica’s Pensionado program.

But they all share one thing: a conviction that the $2,350 renunciation fee, the exit tax paperwork, and the emotional weight of giving up a citizenship are worth it to stop filing two countries’ worth of tax returns for the rest of their lives. (For anyone weighing benefits like Social Security after renunciation, the treaty situation in your destination country matters enormously — some countries eliminate the 30% withholding entirely, while others don’t.)

The US remains one of only two countries on earth — the other being Eritrea — that taxes based on citizenship rather than residency. Until that changes, the Federal Register’s quarterly list will keep getting longer. And the pushpins on the map will keep multiplying.