“Normal” countries charge tax on income and gains earned by the country’s residents, but the United States is one of the only countries that taxes its citizens anywhere they live around the globe. As the U.S. tax code is increasing each year, a number of American Citizens considering expatriation.
Expatriation can be suitable in some cases, especially for those individuals who want to minimize the taxes or reduce reporting requirements. When a person is going through the expatriation process, he/she must renounce the citizenship of the US.
Expatriation requires a trustworthy professional who can help you with the successful completion of the process. One such professional is Matthew Ledvina, a skilled and proficient cross-border US tax advisor who provides significant tax-related advice to his clients. Moreover, he helps people in the process of expatriation by providing them all the reliable information related to the process.
Rights after Renunciation
There is a lot of misinformation about the results of renunciation, specifically regarding the rights after expatriation. This propaganda directly comes from the media rumors and misreports as well as old regulations. Here are the facts that will clear-up all your confusion and offer the exact information.
Loss of US Rights?
The rights you lose in the case of renouncing the citizenship of the United States include:
- You will be unable to work and live in the US
- You will also lose the right to Vote in the US elections
- You will be unable to get the protection of the US overseas.
- You will be not allowed to enter the US and remain indefinitely.
- If any children born after your renunciation, he/she will not be given the citizenship of the United States.
- The renunciation of US citizenship is absolutely unalterable, there is no such provision to re-acquire citizenship, once you renounce, you will lose citizen for remaining your lifetime.
Treatment of Ex-Citizens Visiting United States
After renouncing the citizenship, you are allowed to travel visa-free to the US up to 90 days for the tourism and business purpose, if you have the citizenship of one of the 38 visa-waiver countries, including Europe and few other countries of Asia-Pacific.
On the other hand, if your country is not a visa-waiver country, then you need to apply for a visa to the US. for visiting and treated as the other country citizen would come under their visa application process.
As per the law, after the renunciation, the US. cannot treat you differently than other citizens of different countries. In addition to this, your biometric information such as 10 digit fingerprints and a digital photograph will be taken and hoard by the US. It is applied to all the non-US citizens from the age group 14 to 79 in the application process of visa or entering in the U.S.
Regarding US taxes, as you renounce the US, you will be considered as the non-citizen and you will not be eligible to pay the taxes unless you spend “substantial” time (around4 months per year) in the United States.