Trend Of US Citizenship Renunciation To Rise "Dramatically" | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

Trend Of US Citizenship Renunciation To Rise "Dramatically"

The threat of higher US taxes, combined with other factors, could produce a sharp rise in the number of Americans seeking to give up their citizenship, an advisor working in the space says.

The number of US citizens looking to renounce nationality will increase “dramatically” because they’re looking to break free as taxes rise, an advisor handling such individuals has told this publication.

The US taxes its citizens on a worldwide basis - the only major country to do so - and expats must file annual returns to the Internal Revenue Service. With the Biden administration expected to push up income, capital and estate taxes in the coming year or so, high net worth Americans are in the firing line. And for expats, they can only escape the net if they give up their citizenship.

David Lesperance, a Canadian-born advisor working with HNW individuals seeking to mitigate heavy taxes, said this is a busy time, and not just because of the situation HNW Americans find themselves in.

The pandemic has also interrupted renunciation processes and, as countries open up, there could be a rush of cases.

“It must be remembered that since the start of the pandemic, many US missions (where one must renounce citizenship) have been closed or operating at a reduced capacity. For example, I recently received an email from the US Embassy in Berne, Switzerland, saying they had a waiting list of 400 people for renunciation appointments….and that is only one of 307 US foreign missions! So, in summary, the rate of expatriation will continue to accelerate dramatically,” he said.