Wealthy people are renouncing US citizenship: blame the taxes

Wealthy people are renouncing US citizenship: blame the taxes

As it become known, the number of people who renounced their US citizenship in favor of a foreign country hit an all-time high in 2020: 6,707, a 237% increase over 2019. New tax and estate measures proposed by the Biden administration could, if implemented, accelerate this trend. The people who flee tend to be ultra-wealthy, and many of them are seeking to reduce their tax burden. Mind that only the U.S. and Eritrea tax people based on citizenship rather than residency. For most countries, if you are a citizen but don’t reside there, you aren’t taxed in that country.

When numbers started swelling?

In 2010, when Congress passed the Foreign Account Tax Compliance Act, or FATCA, which increased reporting requirements and penalties for expats. FATCA “kind of flushed people out of the bushes,” says Andrew Mitchel, an international tax lawyer based in Connecticut who tracks the numbers. It “effectively deputized all the banks around the world to tattletale on U.S. citizens.” But the Wall Street Journal discovered that the lists aren’t up to date: A lot of people who were reported to have renounced citizenship in 2020 actually did so years earlier.

Who would want to renounce US citizenship?

Some are “accidental Americans,” who were born here but didn’t live here that much. For example, U.K. prime minister Boris Johnson was born in the U.S. but only lived here as a small child, and subsequently renounced his citizenship.) A lot of people who take this drastic step are tech zillionaires: Eric Schmidt, the former Alphabet CEO, has applied to become a citizen of Cyprus. And maybe there will be more of them to seek dual citizenship because of the tax burden. President Biden has proposed raising the top capital gains tax to 43.4%, and while it’s unclear whether that will pass, it did prompt a lot of calls to tax lawyers from people wanting to find out which foreign countries might grant them citizenship. US government spent a lot of money like many other countries to implement anti-covid measures including supporting people who lost their jobs. Ans now government needs to find a way to bring cash flow to the national budget.

As it become known, the number of Americans who renounced their US citizenship in favor of a foreign country hit an all-time high in 2020: 6,707, a 237% increase over 2019.
As it become known, the number of Americans who renounced their US citizenship in favor of a foreign country hit an all-time high in 2020: 6,707, a 237% increase over 2019.

A lot of people who would like to renounce US citizenship just can’t get the appointment. With coronavirus shutting down interviews for renunciation, the next lists will only contain relinquished green card holders, who can do it by mail. Says David Lesperance, an international tax lawyer based in Poland who specializes in helping people renounce U.S.

And what about dual citizenship?

But that is not only about taxes. During first pandemic waves citizens of US experienced for the first time in their lives what does it feel to be on a limit. Because many boarders were closed to them, holders of so powerful document – passport of US citizen. Everybody understood that this was not for life. Since the 1st of July 2021 citizens of US are allowed to enter EU, for example.  But that doesn’t stop wealthy American people from being interested in getting citizenship by investment. For example, citizenship of Montenegro. Because people want to have insurance of a kind, they want to be protected and stay above any situation.

Source: AXIOS

For investors we offer a wide range of Citizenship by Investment Programs to choose from. Please, contact Apex Capital Partners to get more information and ask personal questions. You can get free consultation from Apex Capital Partners on the program of Citizenship of Turkey, Portugal’s Golden Visa. As well as Cyprus, Caribbean (Citizenship of St. Kitts and Nevis, Dominica, Grenada, Saint Lucia, Antigua). Ask your question – info@apexcap.orgatannous@apexcap.org

If you are a private banking specialist, a family lawyer, or work as a financial consultant in Middle East, Africa, China or any other region of the world, do not hesitate to contact Apex Capital Partners and become a partner, a part of our strong professional network. APEX has all the main local agent licenses to work with Citizenship by Investment Programs, including all key Caribbean CIPs. Please contact – Armand Tannous, atannous@apexcap.org

Share This Article :
Archives
Apex Capital Partners

CARIBBEAN CITIZENSHIP BY INVESTMENT

Caribbean citizenship by investment is allowed in Antigua & Barbuda, Anguilla, Dominica, Grenada, Saint Lucia, and St. Kitts & Nevis. Acquiring a second passport in Caribbean countries has many benefits.

European citizenship by investment

EUROPEAN CITIZENSHIP BY INVESTMENT

European Citizenship by Investment is becoming increasingly popular across the globe. We will answer the questions where can I get second passport EU and what countries would be interesting for EU citizenship through investment?

CITIZENSHIP BY INVESTMENT IN REAL ESTATE PROJECTS

The experience of Apex Capital Partners with the real estate market allows us to find reliable developers around the world whose projects allow you to obtain citizenship for real estate.

Related Posts

Do you have a question?

CONTACT US

Need more information about Citizenship by Investment Programs or other investment options? Send us a message and our specialists will get back to you within 24 hours.

For Media Inquiries ONLY please contact
Eric Fischgrund
646 699 1148

This site uses cookies in order to improve your user experience. Detailed information on the use of cookies on this website is provided in our Cookies Policy statement. If you continue on this website, you consent to our use of cookies.