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7 posts • Page 1 of 1
Has anyone on this website ever renounced US citizenship?
This is a good question - but why should somebody renounce US citizenship, out of what reason? Apply for a new citizenship of which country?
To leave USA and settle down somewhere else is a good idea, to aquire a second citizenship or permanent resident status of another country if you live there for a very long time is a good thing to do, but renounce US citizenship? US citizenship is not bad in general.
If you travel as an US-citizen, you are fine. Just do not expose yourself as an 'American' and complain about everything around you while in a foreign country and do not teach others that everything is so much better in US and what all people living outside of USA can learn from the States.
Do not show up as a religious bigot or promote feminist values and also do not berate people if they cannot speak good English and cannot understand you what you say.
US citizens can travel quite easily worldwide...and the USD as a currency is accepted everywhere you go.
USA has its problems, no question about that - but it is for sure a better place than many other countries in this world.
It is a great idea to avoid taxes that are earned abroad. I personally pay many thousands of dollars a years in foreign earnings to the US government. It is insane because that money never touches the USA.
The only reason I do not renounce is because I would forfeit an almost 6 figure pension so for me it is worth it to just pay the taxes, file the yearly documentation and bear it.
There are 2 big problems with US citizenship. 1) You must pay US income tax on worldwide income and report all foreign financial accounts to the US government. Foreign financial accounts raise suspicions, resulting in more tax audits, which are very inconvenient if living outside the US. 2) Most non-US banks refuse US citizens as clients because the US requires the bank to report all sorts of things to the US government, which is a paperwork burden on the bank, and the US has the clout to enforce this requirement in banks in most countries (banks in Russia and China would be exceptions). Lack of ability to have local bank account is another big inconvenience to US citizens living outside the USA.
Having said the above, I personally would only give up US citizenship for another first world citizenship, such as a European country or Canada, and only if I spoke the local language fluently and was planning to live in that other country at least part of the year.
As things stand, I live outside the USA most of the year, but for tax and banking purposes am like any other US citizen. I only use US banks and take local money out at ATMs. US tax rates are low compared to most European countries so not losing anything there. So the above listed problems don't really affect me. Even if I get permanent residency in Ukraine someday, I'd probably still just use US banks and file only US taxes.
Worldwide income is taxed by the US but I believe something like the first $90-100k is excluded/untaxed. So unless you're making serious money abroad this probably won't be an issue. The people that have historically renounced citizenship to dodge taxes have done so to save 100s of millions or even billions of dollars, not a few thousand LOL, and already had second passport in desirable places like Singapore.
This is about the same what I hear from friends who are US-citizens living here in Japan who are, like myself, permanent Japanese residents and are receiving their income from Japan or from elsewhere but NOT from USA.
USA is likely the only country in this world, which is taxing people by citizenship and not where they are actually living.
However there is an income exclusion on foreign earned income of USD 105.900,- (this year, 2019) for US-citizens living abroad.
USD 105.900,- (USD 8.825,- per month) is not such a small amount and as it is not taxed in USA it will be therefore taxed in Japan using Japanese tax procedures.
What remains for my US-friends, who are technicians, teachers in international schools or employees/translators etc. in Japanese companies is more or less only the obligation to report their income to the US authorities EVERY years. Just paperwork.. annoying, but not really such a big headache.
About foreign banking accounts, I do not know about any US-citizen living in Japan permanently who does not have a Japanese banking account.
The only requirement for US-citizens is to report their banking accounts to US authorities if the balance is over USD 10.000,- every year.
It is true that small Japanese regional saving banks have no idea how to handle a banking account for a foreigner and are not aware of additional obligations if the foreigner is an US-citizen. Their employees too have very limited foreign language knowledge. Don't use them!
However large Japanese banks have no problem with opening banking accounts for foreigners in various currencies if they have a proper visa valid for at least 12 months. Those large banking corportations know exactly which additional paperwork is required for US-citizens.
Just a few I know personally:
Sumitomo Trust Bank (related to Sumitomo Corporation) has many US-customers, as it was taking over all Citibank/Japan accounts and creditcard services a few years ago, everything is bi-lingual there, every person working there is very fluent in English, all can be done by English internet pages online. Sumitomo ATMs are everywhere in Japan.
Mizuho Corporation is also operating banking accounts for foreigners.
MUFJ Banking is also popular to foreigners (including foreign owned businesses) in Japan.
I never used them however.
It is also said that Japan Post Bank is operating banking accounts for foreigners and they have a good network of ATMs in Japan even in rural area, but I have no practical experience with them.
You said it right here, the socialist have made all these promises they cannot keep long term, big gov destroyed America along with the stupidity of it's citizenery allowing them to build this house of cards. They made all these promises so they could build the world wide police state so they could take the world over and then blame capitalism for what the socialist engineered with an accounting gimmick enforced at gun point......
Time to Hide!