4 ms·

he'd also have to renounce his US citizenship

by zht 3y ago

peddling-brink 3y ago
Only if the other country demands it. The US allows dual citizenship.
- pandaman 3y ago
  The US will tax its citizens no matter what other citizenship(s) they have.
  - latency-guy2 3y ago
    Not totally correct, yes the implication is there, but US has tax agreements with many countries such that your tax burden will not be affected significantly compared to a local resident at X country that is not the USA or it's territories. Tax implications only really affect you at high income levels (think millions of USD/annually). The cases where you are considered 'double taxed' are, IMHO, rare, and in fact mostly do not happen. This comes from a person who detests taxes of all kinds. There are guides out there including by the US government detailing how expatriates can manage their taxes, suggest reading on them.
    - pandaman 3y ago
      That is orthogonal to having another citizenship, it affects anybody with just the US citizenship as same as somebody with a citizenship in every other country in the world all at once. >Tax implications only really affect you at high income levels (think millions of USD/annually). Depends on what you mean by "really affect" because they definitely affect you at any income level as you have to file taxes with the IRS.
    - bitdivision 3y ago
      Sure, you're unlikely to be taxed twice, but there's still a high burden to having to file a US return every year. The cost of getting a US / UK accountant to do the most simple of returns will run you around $1000 in total (at least in the UK), and the costs increase dramatically as your taxes get complicated. That doesn't even get into things which aren't covered by the DTA, like ISA accounts in the UK. And worse it's extremely easy to run afoul of PFIC rules which lead to punitive US tax and a higher reporting burden if you do any investing. Being a US expat is expensive if you don't want to give up your citizenship.

he'd also have to renounce his US citizenship

by zht 3y ago

he'd also have to renounce his US citizenship

peddling-brink 3y ago

Only if the other country demands it. The US allows dual citizenship.

pandaman 3y ago
The US will tax its citizens no matter what other citizenship(s) they have.
- latency-guy2 3y ago
  Not totally correct, yes the implication is there, but US has tax agreements with many countries such that your tax burden will not be affected significantly compared to a local resident at X country that is not the USA or it's territories. Tax implications only really affect you at high income levels (think millions of USD/annually). The cases where you are considered 'double taxed' are, IMHO, rare, and in fact mostly do not happen. This comes from a person who detests taxes of all kinds. There are guides out there including by the US government detailing how expatriates can manage their taxes, suggest reading on them.
  - pandaman 3y ago
    That is orthogonal to having another citizenship, it affects anybody with just the US citizenship as same as somebody with a citizenship in every other country in the world all at once. >Tax implications only really affect you at high income levels (think millions of USD/annually). Depends on what you mean by "really affect" because they definitely affect you at any income level as you have to file taxes with the IRS.
  - bitdivision 3y ago
    Sure, you're unlikely to be taxed twice, but there's still a high burden to having to file a US return every year. The cost of getting a US / UK accountant to do the most simple of returns will run you around $1000 in total (at least in the UK), and the costs increase dramatically as your taxes get complicated. That doesn't even get into things which aren't covered by the DTA, like ISA accounts in the UK. And worse it's extremely easy to run afoul of PFIC rules which lead to punitive US tax and a higher reporting burden if you do any investing. Being a US expat is expensive if you don't want to give up your citizenship.