Giving up US citizenship

US citizens and green card holders are generally subject to US tax on worldwide income and are within the scope of US gift and estate taxes.

Such individuals may, given the right circumstances, contemplate giving up their citizenship or Green card.   This is often referred to as ‘expatriation’.  We can advise on the tax consequences of this course of action. Whilst expatriation can eliminate future worldwide income taxation, there are significant potential tax downsides such as the potential for an immediate tax charge on the built-in gains on worldwide assets, as well as inheritance tax on all future gifts or bequests made to US citizens.

We can help individuals in these circumstances determine whether expatriation is the right course of action from a tax perspective. We can also help with appropriate strategies to mitigate the potential tax exposures, and we can the prepare tax filings associated with expatriation.

Andersen does not provide legal advice on the implications of expatriating.  It is essential that individuals considering expatriation seek advice on the immigration consequences from an appropriately qualified lawyer.