80 per cent of USA expats considering giving up citizenship due to FATCA

Published:  16 Jul at 6 PM
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Tagged: USA, Citizenship
A new survey has revealed that the onset of the USA’s FATCA global tax law has resulted in an 11 per cent rise in the number of Americans prepared to give up US citizenship.

The results of the poll, undertaken by a major international financial product provider, won’t come as a shock to US expats living permanently overseas. Already, banks in their host countries are closing out US citizen-held accounts and refusing new business rather than deal with the reams of paperwork needed to comply with the directive.

Almost 80 per cent of those polled said they were seriously considering giving up their citizenship and are exploring the options of becoming citizens of other overseas jurisdictions. Many also mentioned the complicated and obligatory annual tax returns on their offshore and investment incomes and the need to pay tax in the USA whilst not intending to return.

The survey was the second since November 2013, with the earlier poll stating that 68 per cent of respondents though they might relinquish their citizenship. The present poll saw the percentage of those considering the move rise to 79 per cent, with many citing the unreasonable burden of FATCA compliance.

Interestingly, amongst the reasons given for severing official ties with their home country was a feeling that Americans abroad are now under suspicion even although they have always kept their tax affairs in order. More than 76 million Americans are living overseas and, in 2013, the numbers relinquishing their passports ahead of FATCA’s introduction rose by more than 200 per cent over the previous year.
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