Renouncing US Citizenship

[DJClaire 139]

6 minutes ago, OldUser said:

That is one worry I wish I had hahahaha! 

 

 

You can safely ignore Andrew's channel. He's catering for multimillionaires (10M+). Typically this is when taxation becomes a real issue. 

 

I was thinking maybe that's why you're seeking to renounce.

 

[garebear397 84]

31 minutes ago, DJClaire said:

 

Yes, it is a real problem for many dual nationals. The British banks do not find US resident customers attractive, due to the huge reporting requirements placed on them by the IRS. They often look at these accounts as a problem for not very much return. 

 

As for the taxation, there is no problem filing but the extra layer of form filling required can be a headache as I am not in the UK, so I have to navigate THREE tax systems (two taxing worldwide income) and THREE different filing and payment dates. So far I have managed it perfectly and never been late or missed anything however it is A LOT. Then when you add in the extra dimension that inheritance tax might create for me in a few years, it feels overwhelming. The key issue is America is one of only TWO countries in the WORLD that demand citizens file taxes regardless of where they live. It is a royal pain. We never owe anything to the US as the taxation is higher in Spain, but still, it costs us a fortune in time and money to remain compliant. 

 

As for visas and future entry I will definitely take legal guidance on that. Though I never want to live there again (and could likely never afford to again what with housing and healthcare costs) I would like the ability to holiday there. I will take some advice and try and best weigh up the pros and cons. Thanks so much for y our help and input, I really appreciate it. 

Ahh wow, yeah that is annoying (UK banks not liking US citizen customers). Never had an issue with that while living in Chile -- a couple times I have had to fill out some forms etc. when they asked due to US reporting, but nothing crazy. And yeah the US taxing worldwide income no matter where you live...really sucks, and like you said not at all the precedent of almost any other country. 

 

Good luck with everything! 

 

[R&OC 374]

We all have some issues with European banks but there are always the few banks who remain US customer friendly.  I would highly recommend to seek them out. Also, given the geopolitical climate, I would think it is a huge blessing to have a US passport. Is there a minor pain factor when it comes to administrative issues in Europe? Sure. I can only speak for myself but it is a price I am more than willing to pay. The consequences of giving up your citizenship may not be entirely clear at this point.

 

Frankly speaking, you just obtained your citizenship and gave an oath. It does seem to be slightly on the emotional side to decide against the US after a few months.

 

[Liam2021 587]

On 2/17/2025 at 7:09 AM, DJClaire said:

This is not technically true.

 

We do not have any intention of ever returning to the US, however, if we had to for some reason there is nothing legally stopping us from going through the immigration process again. 

Yes, you can go through the process over again if you want. However, I'm not fully understand what was the reason to give up citizenship since you're already at the end of the tunnel ? 

[Tesco 81]

There was a time when UK Banks/Building Societies would not allow 'U.S. Persons'. This was all FACTA compliance related, so the vast majority simply decided not to have any 'U.S. Persons', so as to eliminate a compliance headache. 

 

In more recent years, the vast majority of banks allow 'U.S. Persons'. You will find that some building societies will not allow, but the majority do. 

 

 

[ghostinthemachine 85]

On 2/17/2025 at 10:51 AM, DJClaire said:

 

Yes, it is a real problem for many dual nationals. The British banks do not find US resident customers attractive, due to the huge reporting requirements placed on them by the IRS. They often look at these accounts as a problem for not very much return. 

 

Just wanted to say that I fully understand the pressure of this. It's the same situation in Germany and even as an LPR it has severely limited my options on what I can do banking/investment wise. Commerzbank closed my mother's account after she put me as a signatory (in case anything were to happen to her) because of my LPR status alone. It's frankly insane. I hope you can figure out a viable solution for you and your family.

[DJClaire 139]

1 minute ago, ghostinthemachine said:

 

Just wanted to say that I fully understand the pressure of this. It's the same situation in Germany and even as an LPR it has severely limited my options on what I can do banking/investment wise. Commerzbank closed my mother's account after she put me as a signatory (in case anything were to happen to her) because of my LPR status alone. It's frankly insane. I hope you can figure out a viable solution for you and your family.

Thanks so much. It really is a tricky one to navigate. Looks like the two banks I have been with for over 30 years will want to close my accounts which are very active and in use. So currently have to search for alternative banking options.