giving back the blue passport is not easy, they dont make it easy and they keep the number of people who give back the passport secret. do not want to let the rest of the population out there think other place are better. remeber only the United States and North Korea tax there citizens on worldwide income. dont listen to anyone i live in Singapore more freedom here then the United States. good luck with your search more americans should get a second passport just in case ,but only 3%of the population have passports now ,
If you're a US citizen and you move to another country permanently, you still have to pay US income tax. The only way to avoid this is to renounce. The US apparently stands out as one of the few (or only) countries to do this. I understand that if you're a UK citizen living abroad, you stop paying UK taxes after some period but can stay a UK citizen.
that is the way most of the world does it, only north korea and united states tax on worldwide income, thats the fact. it is next to impossible to denouce u.s. citizenship they dont want you to leave. TAX SLAVERY
Dood, it "renounce" not "denounce" Anyway, it's not hard to renounce US citizenship. You just have to do it at a US consulate in a foreign country.
Thanks for the replies. I clearly understand I'd have to renounce US citizenship, hence the title of the thread. It is interesting that some feel it is difficult to give back one's US passport. I suspected that and feel that the trend will grow. Texas sounds great, but I fear the health care situation will deteriorate. I think it's only a matter of time before the US starts taxing wealth in addition to income. At that point, we will become a "Hotel California".
Sorry for quoting myself, but I was repeating something I read here on ET all the time. Is it really true? Back in the 80s I worked for a large defense contractor. Some of the older guys in the office had been field engineers in the 70s in Iran under the Shah for the same company. Several of them told me that one reason they took the field positions because they didn't have to pay income tax when they were out of country. These stories are the opposite of what I said above. Which is correct?
BTW I live in Switzerland, and have so for the past decade. What has changed here in Switzerland is that the flat tax for foreigners is changing. Zurich got rid of it an election or two ago. The Swiss don't like the concept anymore because they are penalized for being a citizen of their own country. And the thing is that if the poster were to reneg his American passport, and get the Swiss passport then he would be subject to Swiss taxes. Still not bad, but not as low. And if he were to keep the American passport then he is still subject to American taxation. I know a few Americans who like Switzerland, but don't have an real tax advantage. Simply put there is no quick and easy answer....
I would suggest waiting for some years before giving up u.s. citizenship, but living abroad and find a best place. Tax problem? no body is going to fetch you from overseas if you do not pay.
I am not an American, but I have dealt with many Americans and have American friends who live outside of America. Here is how it works: 1) You are subject to taxation. But the catch is that they only ask for money if you are making oodles of money. For my friends who make about 100K USD they end up paying nothing for the most part. Unless of course they paid no taxes. 2) If you are an American, you are subject to special restrictions now. I work in the financial field and if you have an American passport you have to be declared and all institutions will declare you. You cannot hide. It is not a big deal for those that don't rake in the millions. Overall all of the Americans I have met would never give up their passport even though they have these extra hoops. From their discussions it seems these are paper hoops without any ramifications in terms of finances. The flip side is that American's tend to get many rights such as voting and being part of the American community.
Here is some interesting tidbits... http://www.taxmeless.com/page4.html If you fail to file that return for any tax year (whether a return is required or not), the statute of limitations on tax assessments for that year will never run out. Therefore, if you live abroad for 10 years, and then return to the United States, the IRS may question your failure to file returns for those ten years and later make assessments based on their best estimate you're your income. The interest and penalties on any old tax amounts owed grows faster than you can imagine and after 4-5 years may exceed the amount of the original taxes owed. The American friends I have fill out their tax forms... They don't miss doing that.