More and more Americans revoke their US citizenship. According to the US Treasury Department, there are 4,279 Americans who gave up their citizenship last year. So, what are the reasons why they choose to denounce their citizenship?
There are several reasons why an American citizen, who lives in another country, denounces his nationality. Some of the reasons are as follows:
Applying For Becoming A Naturalized Citizen Of Another Country
America is a country that accepts dual citizenship. However, not all countries permit you to have two nationalities. If a person lives in a country where having two nationalities is not allowed, he needs to denounce his American citizenship before he applies to becoming a naturalized citizen of another country.
Joining The Armed Forces Of Another Country
If you want to enter the armed forces of the country where you live, you must denounce your US citizenship first. Most of the countries accept soldiers who live and were raised in their homeland. But there are foreigners who want to serve the country where he lives. If you are one of these people, you must give up your citizenship as it is the only way that you can serve the place where you live.
Working For A Foreign Government
Another reason why an American citizen denounces his original nationality is he wants to work in a foreign government. Though there are firms which accept foreigners as their employees, some of them choose to work in government-owned companies. However, they need to give up their US citizenship if they want to work for a foreign government.
Shutting Out Of Foreign Banks
It is a common problem of Americans who live in another country. The US government wanted to catch tax evaders. Thus, they implemented a law called “The Foreign Account Tax Compliance Act of 2010.” However, it pushes the foreign banks to shut out American accounts as they don’t want to bring hassles to their clients. Consequently, Americans, who now live in another country, face financial difficulties since they cannot withdraw their money from their US accounts. Thus, they choose to denounce their American citizenship and start a new life there.
It is the major reason why an American citizen chooses to denounce his nationality. Almost all countries have the same rules when it comes to taxation, and that is they only get taxes from the citizens who work in their country. The only country that does not follow this rule is America. If you are a US citizen, and you are working and living in another country, you still need to pay your taxes as it is one of your responsibilities as a resident. Thus, you are paying two taxes, which leaves you almost empty-handed. Hence, Americans choose to denounce their US citizenship so they don’t need to pay their taxes in America.
However, denouncing your American citizenship would take a long process. Nonetheless, the wait will be worth it once you denounce your US nationality since you don’t have to deal with such problems anymore.