The answer to this question is maybe!
When the Heroes Earnings Assistance and Relief Tax Act of 2008 passed through Congress, the possible financial consequences of renouncing your citizenship changed a bit. This act imposes an exit tax above and beyond standard US expat taxes on covered expatriates who surrender their US citizenship. You are considered a covered expatriate and subject to the exit tax if you meet three conditions:
- Your average annual net income tax for the 5 years prior to the date of expatriation is more than a certain amount that is adjusted for inflation each year ($155,000 for 2013, $157,000 for 2014 and $160,000 as of 2015).
- Your net worth is $2 million or more on the date of your expatriation.
- You fail to certify on Form 8854 that you are fully compliant with your US tax obligations for the 5 years preceding the date of your expatriation.
If these conditions do not apply, you will not be subject to additional US taxes after you officially renounce your citizenship.