I read this article in the Financial Times about Americans in the UK trading in the passports for tax reasons.

http://www.ft.com/cms/s/0/0ae8415c-9e5e-11df-a5a4-00144feab49a.html

Pros of renouncing American citizenship

• No yearly US tax filing.
• No payment of US tax on worldwide income and capital gains.
• Helps if you are looking to acquire a domicile in a country with more tax advantages.

Cons

• Exit tax must be paid on all income and gains if you have more than $2m in net assets.
• It is difficult to reverse your decision – you would be treated like all other applicants if you reapply for US citizenship.
• You face the prospect of never living or working permanently again in the US.
• Upon surrendering a US passport, UK nationals are only entitled to spend a maximum of 90 days on each visit to the US. They are also required to register with the US Department of Homeland Security.
  ----------------------

I know a guy in Russia who gave up his American citizenship for that of some tiny island in the Caribbean. I was told by a mutual friend that it saved him millions in taxes so maybe that was a good call. The guy with the new citizenship agreed that it won't do him any good if the Russian authorities ever want to bust his balls like they do from time to time for no apparent reason.

Here on the pages of Thaivisa I've read about farang who are thrilled about getting their Thai citizenship.

Has anyone here given up their citizenship before? Do you know anyone who has? What were the reasons?

The ideals of citizenship are ones to ponder carefully. You're just an extension of a national identification. A number. A digit.

Actually, I was told specifically by the US citizens services that if one does renounce one's citizenship that it is not that difficult to get it back. So, I wonder where your article got their info from. Why anyone would renounce their US citizenship to pay even higher taxes in the UK also does not make any sense.

If UK citizens are 'not ordinarily resident' in the UK they only have to pay tax on income generated in the UK whereas, I believe , US citizens have to pay tax on their worldwide earnings no matter where they live?

If UK citizens are 'not ordinarily resident' in the UK they only have to pay tax on income generated in the UK whereas, I believe , US citizens have to pay tax on their worldwide earnings no matter where they live?

I believe that is also correct. Here in Saudi I work with an American. I pay no taxes but each year he has to file his return and pay taxes on earnings over xxxxxxx (not sure of the exact amount)

Here on the pages of Thaivisa I've read about farang who are thrilled about getting their Thai citizenship.

Has anyone here given up their citizenship before? Do you know anyone who has? What were the reasons?

If you do eventually manage to gain your Thai citizenship, a UK citizen doesn't have to give up their UK citizenship.

Here on the pages of Thaivisa I've read about farang who are thrilled about getting their Thai citizenship.

Has anyone here given up their citizenship before? Do you know anyone who has? What were the reasons?

If you do eventually manage to gain your Thai citizenship, a UK citizen doesn't have to give up their UK citizenship.

Oh, I was just wondering about others. I have no intention of giving up my US Passport. There are the rare occasions where we'll be singled out and killed but for the most part it's a very good thing to have. I couldn't imagine the fun a tall farang would have at borders across the world presenting a Thai passport.

And I think it's about the first $90k that is tax exempt if you are in the USA for less than 30 days per calendar year.

The amount was $91,400 in 2009 and the calendar year is actually a tax year which begins with your first full day outside the continental US, it's territories and possessions, not including travel over international waters.

Publication 54 has all the answers: http://www.irs.gov/publications/p54/index.html

one of the few things give i clinton credit for was signing an agreement with thailand that if we pay tax here we do not need to pay tax there same is true for thais.

one of the few things give i clinton credit for was signing an agreement with thailand that if we pay tax here we do not need to pay tax there same is true for thais.

I'm not sure Clinton deserves credit for this either. It has always been in the tax law. The following is excerpted from Publication 54.

_______________________________________________________

Taxes of Foreign Countries and U.S. Possessions

You can take either a credit or a deduction for income taxes paid to a foreign country or a U.S. possession. Taken as a deduction, foreign income taxes reduce your taxable income. Taken as a credit, foreign income taxes reduce your tax liability. You must treat all foreign income taxes the same way. If you take a credit for any foreign income taxes, you cannot deduct any foreign income taxes. However, you may be able to deduct other foreign taxes. See Deduction for Other Foreign Taxes, later.

There is no rule to determine whether it is to your advantage to take a deduction or a credit for foreign income taxes. In most cases, it is to your advantage to take foreign income taxes as a tax credit, which you subtract directly from your U.S. tax liability, rather than as a deduction in figuring taxable income. However, if foreign income taxes were imposed at a high rate and the proportion of foreign income to U.S. income is small, a lower final tax may result from deducting the foreign income taxes. In any event, you should figure your tax liability both ways and then use the one that is better for you.

You can make or change your choice within 10 years from the due date for filing the tax return on which you are entitled to take either the deduction or the credit.

Foreign income taxes. These are generally income taxes you pay to any foreign country or possession of the United States.

Foreign income taxes on U.S. return. Foreign income taxes can only be taken as a credit on Form 1040, line 47, or as an itemized deduction on Schedule A. These amounts cannot be included as withheld income taxes on Form 1040, line 61.

Here is the link page: http://www.irs.gov/publications/p54/ch05.html#en_US_publink100047580

Just to move on from tax laws...

A passport from the USA or some EU countries will get you most places with minimal probelms. I can see exchanging a US passport for an EU one and vice versa, but why give it up for a passport that will require you to get a visa most places you go? My cousin married a Russian and they lived in Dallas. She used to be sooo proud of her Russian passport that she refused to try for an American passport. Of course, whenever she had to go to Europe on business or pleasure she needed to get a visa (pre-Schengan too).

I'm guessing that the farang who give up there citizenship in order to get Thai citizenship aren't doing it for tax reasons. To denounce your citizenship because of politics is also a bit crazy considering how often they can change due to elections. Are they doing it to go completely native?

Here on the pages of Thaivisa I've read about farang who are thrilled about getting their Thai citizenship.

Has anyone here given up their citizenship before? Do you know anyone who has? What were the reasons?

If you do eventually manage to gain your Thai citizenship, a UK citizen doesn't have to give up their UK citizenship.

This might apply universally, as most countries see it - dual citizenship. Naturally, there are the handful of countries that have never allowed this.

Here on the pages of Thaivisa I've read about farang who are thrilled about getting their Thai citizenship.

Has anyone here given up their citizenship before? Do you know anyone who has? What were the reasons?

If you do eventually manage to gain your Thai citizenship, a UK citizen doesn't have to give up their UK citizenship.

This might apply universally, as most countries see it - dual citizenship. Naturally, there are the handful of countries that have never allowed this.

I've heard that the USA doesn't allow dual citizenship but I know guys with two passports. Years ago I went with some friends (all Americans) to Finland. At the border one jumped in the shorter EU Citizens line and I asked him what he thought he was doing. He flashed a big smile and an Irish passport (his Mom was Irish).

I have friends with kids that have dual citizenship but I thought they had to decide on one by their 18th bday. Of course, the USA doesn't have conscription and some countries do so that makes the choice a little easier for some.

I heard recently that the U.S. has/is in the process of changing the law which would prevent former U.S. citizens from returning at all if they had renounced their U.S. citizenship to evade taxes.

I heard recently that the U.S. has/is in the process of changing the law which would prevent former U.S. citizens from returning at all if they had renounced their U.S. citizenship to evade taxes.

No worries. They can always just walk across the southern border.

I heard recently that the U.S. has/is in the process of changing the law which would prevent former U.S. citizens from returning at all if they had renounced their U.S. citizenship to evade taxes.

No worries. They can always just walk across the southern border.

5555

I've heard that the USA doesn't allow dual citizenship but I know guys with two passports.

This is what the State Department says about dual nationality.

______________________________________________________

The concept of dual nationality means that a person is a citizen of two countries at the same time. Each country has its own citizenship laws based on its own policy.Persons may have dual nationality by automatic operation of different laws rather than by choice. For example, a child born in a foreign country to U.S. citizen parents may be both a U.S. citizen and a citizen of the country of birth.

A U.S. citizen may acquire foreign citizenship by marriage, or a person naturalized as a U.S. citizen may not lose the citizenship of the country of birth.U.S. law does not mention dual nationality or require a person to choose one citizenship or another. Also, a person who is automatically granted another citizenship does not risk losing U.S. citizenship. However, a person who acquires a foreign citizenship by applying for it may lose U.S. citizenship. In order to lose U.S. citizenship, the law requires that the person must apply for the foreign citizenship voluntarily, by free choice, and with the intention to give up U.S. citizenship.

Link: http://travel.state.gov/travel/cis_pa_tw/cis/cis_1753.html

In regards to the last post, the important word here , according to the State dept representative I talked to, is "intent"

In regards to the last post, the important word here , according to the State dept representative I talked to, is "intent"

I would point out this sentence:

"However, a person who acquires a foreign citizenship by applying for it may lose U.S. citizenship."

The operative word here is "may", which makes the loss of citizenship possible but not positive. If it said "shall", that would be another story.

Intent would drive the "may" or "shall" question.