Relinquishing your U.S. citizenship can come with a hefty price tag.
Because the United States is one of the only countries to tax based on U.S. citizenship, even Americans living abroad must pay U.S. taxes. That can make it tempting for expatriates to renounce their citizenship and skirt U.S. tax rules. Doing so comes at a price.
A record number of Americans are giving up their citizenship, according to the U.S. Treasury Department. Last year, 5,411 individuals either gave up their citizenship or terminated long-term residency. That's a 26 percent increase from 2015.
The list may gain one more boldface name with Meghan Markle, the American actress who is engaged to Britain's Prince Harry. The announcement of the couple's engagement this week included news that Markle plans to become a British citizen.