Why renounce citizenship

If you register via the contact form, we will gladly think along with your situation. Contact us for more information. No menu assigned! I am considering renouncing my US citizenship Are you unsure whether you want to keep your American citizenship? Therefore, here are some advantages and disadvantages of renouncing your American citizenship: You renounce your US citizenship, what are the possible advantages? Only after you have become compliant for Renunciation: filed a tax return for at least 5 full tax years , renounced your citizenship applied for a CLN Certificate of Loss of Nationality and submitted a final Tax declaration for the year of cancellation , your future tax declaration in America expires.

Therefore, only renouncing without having made declarations does not relieve you of your declaration obligations. The following are some of the main advantages of retaining US citizenship that should be considered by anyone thinking of renouncing:.

These benefits of retaining US citizenship should be considered when deciding if renouncing is right for you. Having covered some of the main benefits of US citizenship, it is only logical to cover some of the main benefits of renouncing your US citizenship, as well as the consequences that accompany that decision.

If you decide to renounce your US citizenship, you must take the proper precautions to avoid the imposition of the US exit tax. There are two main exceptions to the exit tax regime for expatriates looking to renounce. The first exception is largely limited to dual citizens born in and living in the country of their other nationality. The second is even narrower and is limited to citizens who did not live in the United States for more than ten years before the age of eighteen and a half.

In the practical application of these two exceptions, a renouncing individual who qualifies under either will not be subject to the Net Worth Test or the Tax Liability Test. Whether qualifying under the exceptions or not, every renouncing individual will always be subject to the Compliance Test. On Form , the renouncing individual must affirm, under penalties of perjury, that he or she is compliant with US tax and filing obligations for the period of five years preceding expatriation.

Therefore, a parent may not renounce the citizenship of his or her minor child. Minors seeking to renounce their own US citizenship must demonstrate to a consular officer that they are acting voluntarily and fully understand the implications and consequences of the renunciation. Although it appears that this law is seldom enforced, there is no guarantee that it will continue to be in the future.

The Reed Amendment is intended to prevent a tax-motivated expatriate from returning to the United States. Representative Reed, in proposing the amendment, stated:. Instrumentally, I would hope in the future if those very slick and smart tax lawyers advising their clients about how to avoid their taxes suggest expatriation, they should also indicate very clearly that the consequences are you cannot return at will to the United States.

What is important to remember is that the burden to prove that there was a tax avoidance purpose in renouncing lies with the US government.

Consequently, what is said at the exit interview is critically important. Avoiding this determination and classification is vital for those who still desire to visit and travel through the United States after renouncing.

The process of renouncing US citizenship is a multi-layered procedure of immigration filings and tax compliance submissions that come to a crescendo with an interview administered at a US Embassy or Consulate General. During this interview, the renouncing individual will:. As a result, many individuals pursuing the renunciation process request that a US-trained and licensed attorney accompany them for the interview.

If properly admitted and approved by the particular Embassy or Consulate, US legal counsel may accompany the renouncing individual to the hearing. The presence of competent and qualified legal counsel can provide a great deal of comfort to what can be an intense, emotional event. Therefore, an individual who has relinquished their citizenship may choose in time to renounce in formal and permanent recognition of their non-US status. Your Name required. Company Name required.

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It is mandatory to procure user consent prior to running these cookies on your website. Are you a dual national seeking to give up your US citizenship? Renunciation videos. Nonetheless, the fee does not seem to be a deterrent. After all, the tax savings for wealthy individuals may be significantly more than the fee. By law the process to renounce U. In practice renunciation can be a very tedious and time-consuming process according to those that have done it.

Fundamentally, a person wishing to renounce his or her U. But the exact process may vary by consular office.

You have the right to renounce U. Before doing so, you should understand exactly how this will affect you and your family. Although you may be motivated by taxes or philosophical differences, you should make sure that renunciation is the best solution for you.

With very few exceptions, renunciation is an irrevocable action. Speak to an experienced US immigration attorney before proceeding. You must renounce U. It is also highly recommended that you obtain legal status and a passport in your new home country.

Although U. This is for your own protection. Without a new home country with legal immigration status, you will become stateless, under the protection of no government. You will only need to prepare a single form before your appointment. However, there are several other forms that the State Department will use to process your renunciation.

Review these before making your appointment:. It is probably most convenient to schedule an appointment at a consular office in your new home country. However, some offices can have very long wait times for appointments. It is possible to use an alternate consular office in a different city or country. In addition to the prepared DS, take other important documents such as your US passport, new passport, birth certificate and other identification. At the end of renunciation appointment you will be provided with DS, Certificate of Loss of Nationality.

Although your renunciation will need to be officially approved by the U. Keep this document in a safe place; it could take several months to get the State Department approval. You will need to settle your taxes with the United States. Your final tax return will be from January 1st through the day you expatriate.

For the best results, contact a certified public accountant CPA. Depending on your situation, you may also need to file FBAR paperwork. And if you have a more delicate situation, consult with a tax attorney that has experience with renunciation.