Of Special Interest


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4th May 2012

US ExPats giving up nationality to save tax

Bloomberg reports that 1,780 expatriates gave up their US citizenship last year up from 235 three years earlier. The source is the Geneva Overseas American Academy. Renouncements are said to be especially high amongst Americans living in Switzerland because of the high level of scrutiny by the US authorities on Switzerland and that many Swiss banks have decided having US customers is now too much regulatory hassle.

The US is the only OECD country to enforce double taxation on its citizens in other countries, although the first $95,000 is allowed tax free. US Citizens wishing to renounce their citizenship are taxed for doing so. They must pay $450, plus any estimated outstanding tax. The double taxation system is said to date from the time of the US civil war.