The US is one of only two countries in the world to tax the foreign earnings of its expats (the other is Eritrea). They’re so annoying about it on the finance side that many foreign banks refuse to give accounts to US expats. Renunciation is the only way to avoid that mess.
The US also takes a big exit tax on the wealth of anyone renouncing.
Yep. You’re fleeced until your last American breath and the IRS will freeze your passport if you dont hand over your money. It’s kidnap and ransom for not making extortion payments.
It used to be that you have to pay a big fat one-time fee to renounce, as kind of a substitute for all of your future tax payments.
I think they changed the rules on that recently, though.
Edit: since GP made the same point about the exit tax, if you purport to renounce without paying the fee, then you haven’t really renounced. You and your assets can be seized for tax evasion (assuming you stop filing tax returns) if they ever touch US jurisdiction again, or any country that has a tax treaty with US, or countries with extradition to US.
The US is one of only two countries in the world to tax the foreign earnings of its expats (the other is Eritrea). They’re so annoying about it on the finance side that many foreign banks refuse to give accounts to US expats. Renunciation is the only way to avoid that mess.
The US also takes a big exit tax on the wealth of anyone renouncing.
Yep. You’re fleeced until your last American breath and the IRS will freeze your passport if you dont hand over your money. It’s kidnap and ransom for not making extortion payments.
But the IRS is like “Sorry. Hands tied :(” going after all those Swiss bank accounts and offshore shells within shells where 0% goes to taxes.
What if I renounce after leaving and taking all my money with me first? How going tax me then?
It used to be that you have to pay a big fat one-time fee to renounce, as kind of a substitute for all of your future tax payments.
I think they changed the rules on that recently, though.
Edit: since GP made the same point about the exit tax, if you purport to renounce without paying the fee, then you haven’t really renounced. You and your assets can be seized for tax evasion (assuming you stop filing tax returns) if they ever touch US jurisdiction again, or any country that has a tax treaty with US, or countries with extradition to US.