Tax-Considerations-Renouncing-US-Citizenship-immigrationThousands of Americans renounce their citizenship, while many foreigners seek to immigrate to the U.S. But there are tax implications to both scenarios. So if you are thinking of giving up your US passport or green card, or moving to the U.S. and applying for a green card, there are several things you need to consider.

Giving up your U.S. citizenship or green card is a huge decision and shouldn’t be taken lightly.  It could mean losing U.S. rights, which includes restricted travel to the U.S.A. and no support from U.S. agencies.  That’s why it’s important to expatriate correctly so you aren’t subject to large penalties or considered a covered expatriate.  Usually, expatriation requires that you have filed U.S. taxes for the previous 5 years and paid all outstanding tax liabilities before you expatriate.

If you’re planning to move stateside or have been granted a green card, you need to make sure you know when you have to start filing taxes.  But it also helps to know your options if you aren’t planning to relocate to America immediately.  This is especially important for the first year in which you officially enter the U.S. tax system so you aren’t paying taxes unnecessarily.

Generally speaking, you’re considered a U.S. taxpayer the moment you arrive in the United States with a valid green card.  However, it’s possible to take advantage of some tax treaty options if you aren’t planning on moving to the U.S. immediately or aren’t currently living in the U.S.

You can get more information on expatriation and immigration on our web page. But watch our video for more information, too. If you want to keep updated on more U.S. Tax matters, subscribe to our YouTube channel or watch our full video playlist. You can also find us on Facebook, Twitter, Google+, and LinkedIn. And we also send out regular newsletters too, so make sure to fill out our newsletter form.

If you need more help on what you need to do when entering or exiting the U.S. tax system you can call us directly.  We make sure to give you an unbiased view of the pros and cons of each decision and can also build tax forecasts for you in order to evaluate your options with confidence.

About US Tax Practice GmbH:
US Tax Practice offers U.S. tax services in Switzerland. It is the go-to tax preparation service and compliance practice for U.S. tax payers. Located in Schaffhausen, Switzerland, the company was founded by Patrick Evans, a U.S. tax accountant (CPA) and U.S. citizen determined to work with his clients’ best interests in mind. US Tax Practice GmbH services include U.S. Income Tax Preparation, U.S. Tax Compliance, Foreign Bank Account Reporting (FBAR), Tax Planning and Optimization, and Expatriation.