Tax implications of getting citizenship and living in France

[rickjames8 0]

So my wife (French) and I (American) have been living in the USA for the past 8 years. My wife has a 10-year green card and has met all requirements to apply for citizenship (she applied in June).  We have some family issues that are requiring us move to France next summer, and there is a good chance we'll end up staying about 5-10 years. We were hoping that getting citizenship would allow us to avoid the hassle and cost of the greencard process when we return. But now we're realizing that getting citizenship would require us filing taxes each year. Can anyone confirm? France and the USA have a tax treaty, but it still seems like it could (in the right circumstances) cause us to pay more taxes.  Is it better to get the citizenship and deal with filing taxes (which I'll need to do anyway) or abandon the greencard and re-apply when we're ready to return? Any other factors we haven't considered?  

[Just Paul 4,595]

1 minute ago, rickjames8 said:

But now we're realizing that getting citizenship would require us filing taxes each year.

Uh and if she remains a green card hold the same is true.

 

Do citizenship, and file the taxes.  She can also do a re-entry permit for two year.   Taxes will still need to be filed.   Note doing being gone too long can reset the whole continuous residency portion of citizenship - so doing now is better.

 

A certain amount of foreign income (well a lot of it) can be excluded.

[rickjames8 0]

>>Uh and if she remains a green card hold the same is true.

Yep - that's what I figured. If we left, we'd need to file for a formal abandonment of the greencard. It sounds like BCP doesn't take too kindly if you try to come back years later on a greencard if you're clearly living elsewhere. 

 

[rickjames8 0]

The other thing at play is that it would work out better for our family if we could leave sooner. We're really just waiting until next summer to get citizenship. So the 'is it worth the wait' is a factor too. 

[Just Paul 4,595]

2 minutes ago, rickjames8 said:

>>Uh and if she remains a green card hold the same is true.

Yep - that's what I figured. If we left, we'd need to file for a formal abandonment of the greencard. It sounds like BCP doesn't take too kindly if you try to come back years later on a greencard if you're clearly living elsewhere. 

 

I know you said 5 to 10 years but getting the Citizenship - even if she has to come back might be worth the cost.

 

You can go the route and get a re-entry permit that would allow 2 years to get things figured out without losing the green card.   You can always abandon the green card from France.