US Citizenship Renunciation

Is now the time to renounce your US citizenship?
Make the right decision for you and your family.

RENUNCIATION WEBINAR SERIES

Complimentary seminars on the main topics of interest concerning the renunciation of your US citizenship.

The United States is one of the only countries in the world to tax based on citizenship.

If you’re a US citizen living outside the United States, you still have yearly IRS tax filing obligations. These tax filing obligations can be an expensive annual hassle (even if you owe no tax) and may even result in double taxation. Fortunately, properly renouncing your US citizenship can provide a way out.

Is Renouncing Your US Citizenship Right for You and Your Family?
Renouncing your US citizenship is a very personal decision. If you’ve made a permanent home outside of the US and find the benefits of maintaining US citizenship no longer outweigh the costs, we can help. The process of renouncing one’s US citizenship is complex and can seem overwhelming. If not done correctly, the consequences can include the imposition of the US Exit Tax, a permanent ban on entering the US and burdening your heirs with the US inheritance tax in life and at your death. Our priority is to help you make an informed and educated decision, one that best suits your situation and your family’s needs.

 

Pros & Cons of Renouncing Your US Citizenship

Pros

Cons

ELIMINATION…
of double taxation (US tax plus the tax in your home country)
—
ELIMINATION…
of US reporting and filing obligations and associated legal costs
—
ELIMINATION…
of US gift tax and estate tax regimes
—
INSULATION...
from US tax changes on expats moving forward
—
ELIMINATION…
of expensive cross-border planning and legal advice
—
ELIMINATION…
of tax owing to the US through common transaction and investment funds in your country of residence (sale of principal residence, non-US mutual funds, privately held non-US corporate interests, etc.)

Cons

LOSS…
of US citizenship privileges (voting in US elections, travel on US passport, year round US residency)
—
LOSS…
of US Consular Services
—
LOSS…
of protection abroad by US government
—
ONE-TIME FEE
of $2350 to the US government (plus applicable legal fees)

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The Biden administration is proposing a capital gains tax rate of 44.6% as part of the fiscal year 2025 budget. Why a record number of American expats are looking to renounce US citizenship before it’s too late.

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Have you ever wondered how much your US citizenship is costing you? Why renouncing could save you hundreds of thousands and open new doors for financial opportunities.

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FAQs

Is there a “right way” to renounce?

Yes. It’s essential to have professional guidance to avoid potential pitfalls of renunciation, such as the US Exit Tax or becoming barred from visiting the US. What you say during a renunciation interview is also crucial as there can be severe immigration consequences. Individuals deemed to have renounced to avoid tax can be barred permanently from returning to the United States, even as tourists. Renunciation requires careful planning on all fronts.

Is renouncing US citizenship a political decision?

Generally, no. Renunciation is often financially motivated. All citizens with ties to the US (regardless of where they live) must meet IRS reporting and filing obligations. These obligations can carry a high cost.

What is an “Accidental American”?

Most children born outside the United States to a US parent and all individuals born in the US are US citizens regardless of where they live now. These citizens are still required to meet annual IRS reporting and filing obligations.

Read our blog on Accidental Americans.

Who is required to meet IRS reporting and filing obligations?

  • US citizens or green card holders living inside or outside the United States
  • Any individual with a US parent(s) who lived in the US long enough to pass such citizenship on at their birth
  • Any individual born in the United States

How much does it cost to maintain my US citizenship?

All US citizens are subject to the costs of annual filing, along with the potential costs of double taxation, US estate and gift tax, and more.
REQUEST A CONSULT

Our Approach

Our method involves a unique combination of Domestic and US tax law, Domestic and US Immigration Law, and US Tax Compliance. Our integrated team of US and domestic lawyers and accountants will help you assess if renouncing your US citizenship is right for you. If you decide to renounce, we work with you through every step to make the process as smooth as possible.

Benefits of renouncing your US citizenship using professional guidance

  • No restrictions on US travel
  • Proper planning to avoid costly taxes levied on renouncers
  • No loss of social security benefits or access to Medicare

Potential issues of renouncing your US citizenship without guidance

  • Restrictions on travel to the US
  • US Exit Tax and exposure to other costly tax laws

International Reach

From Canada to Australia, the UK, Singapore, and beyond. No matter where you live in the world, we can help. Our integrated team of US lawyers and Certified Public Accountants know the intricacies of the US legal and tax systems inside and out. We work with our global network of legal professionals to cover every circumstance unique to your current country.

Alex

D 403.693.5114
M 403.693.5100
amarino@moodystax.com

ALEXANDER MARINO JD, LLM (US TAX)
Director, US Tax Law | Co-Leader, US Tax Practice Group

Alexander Marino brings his extensive experience in cross-border tax law, estate planning, corporate tax, and US expatriation law to his role as Director of US Tax Law at Moodys Tax. As leader of the firm’s US Tax Practice Group, he oversees the world’s largest US Citizenship Renunciation Practice. His team annually assists hundreds of clients from six continents with renouncing their US citizenship or terminating their US green card status – more than any other firm in the world.

His work in US Citizenship Renunciation is crucial for clients seeking to navigate the complex legal and tax implications of giving up their US citizenship. With a strong focus on doing things the right way, Alexander helps individuals understand and comply with the intricate requirements and potential consequences of renunciation. His efforts ensure clients can make informed decisions and effectively manage their international tax responsibilities.

Alexander frequently speaks on US renunciation and expatriation at webinars in Canada and globally, establishing himself as a leading voice in this specialized field. He holds a B.S.B.A. in Finance and Marketing from the University of Pittsburgh, a JD from Duquesne University School of Law, and an LLM in Taxation from the University of Florida Levin College of Law. Alexander is a member of the New Jersey State Bar, Pennsylvania State Bar, American Bar Association Tax Section, and the Society of Trust and Estate Practitioners (STEP).