Nearly one in five U.S. expats ‘seriously considering’ giving up citizenship over taxes, new study finds
LONDON, May 24, 2021 / PRNewswire / – An accounting firm specializing in working with American expats surveyed 3,100 US citizens living abroad and found that 18% were seriously considering renouncing their citizenship while 4% were already planning to do so. The report also found that 69% felt they shouldn’t have to pay taxes in the United States when living abroad. Concerns about complicated deposit procedures and overseas banking issues are proving to be grounds for dissatisfaction with the US tax system.
The US State Department estimates that 10 million Americans live outside the country, including the heads of multinational corporations. This number is expected to continue to grow due to the growth in work from national policies and the lack of representation Americans feel in their government.
Most countries use a residence-based tax system in which expats must pay taxes in their host country. However, American expats must also pay taxes to the United States government on the same income due to taxation based on United States citizenship. The US government has taken steps to avoid double taxation, but all expats still have to file an annual return – and many still have to pay a US tax bill.
“In recent years, we have seen more and more US citizens renounce their citizenship,” says Micha Emmett, CEO of CS Global Partners, a company that specializes in helping clients obtain a second citizenship. “Due to the pandemic, the number is growing faster. Americans now rely on their dual citizenship to renounce their US citizenship, but those without that luxury are opting for much quicker solutions than naturalizing in another country and does not require travel to achieve, such as citizenship by investment. ”
Citizenship through investment programs allows individuals to obtain citizenship of a country in exchange for eligible investments. The concept finds its origin in the Caribbean islands of St Kitts and Nevis, and the country now has the oldest program in the world. Its decades of success have led to the program being dubbed the industry’s “platinum standard”.
“The process most likely takes less than three months and is a solution for many Americans who want better health care and a more nature-based lifestyle that provides cleaner air. Its proximity to the United States and the country’s currency pegged to the US dollar are also major advantages, “Emmett added.
After the candidates invest in the popular Sustainable Growth Fund (SGF) Optionally, they unlock a host of benefits such as visa-free and visa-on-arrival travel to nearly 160 destinations and a lifetime opportunity to live and work in the country. Most importantly, investors and their families acquire citizenship that can be passed on for generations to come. Those who wish to become citizens of Saint Kitts and Nevis can take advantage of the Limited time offer under the SGF, which allows families of four to obtain citizenship for $ 150,000 instead of $ 195,000.
SOURCE CS Global Partners