Indeed correct FATCA accomplishes the same kind of capital controls that China’s restrictions do but in fact even better since I’d imagine a Chinese citizen can in fact get an account at many more offshore banksGovt looks for tax cows not your or mine's way of thinking.. Think why FATCA was cooked up not for tax evasion as told to general public. It was an indirect form of capital control.
Well USD is the reserve currency and all banks need correspondence account in USD. It has the largest economy and threatens banks all over the world as it is the most powerful country in the world today since the Roman Empire. A 200 year old Swiss bank had to shut down its door just because of US sanctions. Anyone read about Wegellin ?
Binden or Biden ? Actually Republicans and Trump made things worst for expats by introducing GILTI tax which effected Canadian American dual nationals mostly. I am not into both parties as both are same in terrorizing US expats while leaving big fish alone as they get their pockets lined up from whales.
I doubt many of us will just for this matter. Many of us cherish our citizenship too much. If US congress can't understand this then it's their problem. However this is a very fast changing world and you never know what happens next. If I had millions of dollars I would have renounced a long time ago as I have been living outside US for more than a decade now.
like davis said neither party is particularly good for Americans living overseas. Republicans could've got rid of FATCA in their 2017 tax reform but didn't.
Actually they are paid by cpa firms and international attorneys who specialize in international compliances for expats and for them FATCA is bread and butter. They will not let it go or even residency based citizenship. IRS is simply wasting its resources due to this and unnecessarily squandering their budgets. Both parties will be labeled as traitors if they do stop FATCA or resident based taxation. Simple laws of economics.
I'd renounce even if you have mid 6 figures the FATCA fines and everything are too high to risk and US accounting is costing me about $3K a year already to tell the US I owe them nothing lol and then I still have the accounting cost in the country i live in. In an ideal world I would never have to give up my US passport but in the world we live in I most likely will. I'd like to do more with my money than sit 6 figures in a savings account but no US broker wants me and I cannot buy US funds due to EU KITs regulations.. I essentially cant invest unless I buy foreign funds and then screw myself via PFICs. I'm in my early 20s The easiest solution is to renounce the US passport and the treatment you get from the US as an american overseas makes it to where I despise the IRS so much I'd just like out of the system entirely regardless.
It all depends on your situation. You are very young and know all the pitfalls already. My costs for accounting are costing me a lot too and no tax due on anything I earn. If I had EU or U.K. passport I would have renounced from US as they are better than US. I simply want to avoid carribean passports as they are not beneficial for an average American. If you are very HNW only it makes sense.
ill have an EU passport in under 2 years luckily, if I was going to have a Caribbean passport or a lower tier country I would probably not give my citizenship up then even with all the burdens that come with US citizenship. I look at my girlfriends EU passport though and laugh because she travels into every country I can with me with ease and yet has none of our burdens. I wish desperately the US situation would change but as you know it will likely never. It's sad to think I will never be able to have the opportunity to live in the country all my family is from again if I wanted it but im 99.9% sure I have no desire to return to the US.. High taxes, nothing in return for it(poor infrastructure, very expensive healthcare, government is a nightmare to deal with if you ever need to).
If EU ever passes the citizenship taxation similar to USA which they are now seriously considering then you will have to rethink your plan againill have an EU passport in under 2 years luckily, if I was going to have a Caribbean passport or a lower tier country I would probably not give my citizenship up then even with all the burdens that come with US citizenship. I look at my girlfriends EU passport though and laugh because she travels into every country I can with me with ease and yet has none of our burdens. I wish desperately the US situation would change but as you know it will likely never. It's sad to think I will never be able to have the opportunity to live in the country all my family is from again if I wanted it but im 99.9% sure I have no desire to return to the US.. High taxes, nothing in return for it(poor infrastructure, very expensive healthcare, government is a nightmare to deal with if you ever need to).
I pay under half my US tax bill legally in the EU country I am in, I have private health insurance at 1/3 the monthly cost I was paying in the US, infrastructure is very good and roads aren't in disarray. I do pay some taxes but least I can feel I am somewhat getting something for it in return. My visa process was smooth I had the help of a lawyer but even still every interaction with the government was smooth, appointments with immigration were on time and straight forward. I can access government services through a app on my phone, dealing with the tax office a "long wait time" to them was 7 minutes on hold while dealing with the IRS over the phone may as well be impossible lol. Every EU country is different and I wouldn't want to live in 90% of them but least where I am now I like.
The only desire to ever be in America I feel is to just return to where I grew up and what I knew but every April when my tax bill hits I cant stand living in the US especially the high state tax state I am from.
. We don't have a crystal ball for future. Maybe if you renounce then you can't change your mind again as very difficult if not impossible to get US citizenship back again.if they passed it, it would of course be stupid but since im living in the EU I dont foresee it causing me any issues in the same way an American citizen living in Kansas doesn't even know what FATCA is or about Citizenship based taxation. I plan to remain living in the EU country ill be a citizen of or to live on one of their Caribbean territories.If EU ever passes the citizenship taxation similar to USA which they are now seriously considering then you will have to rethink your plan again
