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Why you SHOULDN'T get US Citizenship even if you have a chance?
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- เผยแพร่เมื่อ 13 มี.ค. 2021
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You're in a position to get US citizenship. Should you actually take it? Could you regret it down the road? Why is US citizenship different than any other citizenship in the world? Is it an amazing gift or a potential burden?
If you're a citizen of any country in the world, and you decide to move abroad you DO NOT HAVE TO report and file taxes in your home country. If you move abroad you're obligated to report to the country where you actually live, not the country you're a citizen of. Well, not if you're an American.
American citizenship is different than any other citizenship in the world.
Even though, American passport grants you visa-free access to 185 countries (basically most of the world) it still has a huge disadvantage. If you have this passport you will need to report and file taxes in the US no matter where in the world you live! If you make over 100k per year you will always have to pay American taxes.
The USA is one of the 2 countries in the world that will tax you based on your citizenship. As long as you have American passport you will need to pay American taxes.
This creates another problem with banks abroad. They are less likely to let you bank there if you're an American because it would mean that they have to deal with the IRS, and they don't like it. That's why many banks will turn you down.
If you have a foreign bank account that you didn't report to Uncle Sam, they can fine you with 50% of whatever is in that bank account!
Even though an American passport can offer so much, it also can take a lot from you. Many Americans contacted me in the last little while because they want to renounce their American citizenship and are looking for another option.
They find a US passport to be more of a liability than an asset in their life.
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I have very simple question. I know that UAE has no CFC rules, but do UAE residents have to register foreign companies they own with FTA? or Disclose any income from them? If they operate online and don't sell any goods or services within the UAE.
Reason ím asking, if the owner creates permanent establishment by being CEO and making executive decisions from within UAE, is the company's income subject to UAE taxes?
hello!
i did book the call with you, but did not get any confirmation., however the card was charged.
thank you, received the refund.but how else to book a call?
As an American, I can say the tax laws are oppressive to the middle class hard working American.
yep middle class pays for everything
True, thats why MAC is particularly important
US DRACONIAN TAX LAWS are economically engineered to keep its citizens WORKING POOR which is the new class between being POOR and MIDDLE-CLASS!
@@dexterspeights3484 been that way for fifty years were you been up rear
@@nazar_ua this one explains it; th-cam.com/video/tnQS8v4mVRA/w-d-xo.html
Good call on buying a lapel mic. Audio is way better than your prior videos. Good content too!
One of my friends just renounced his US citizenship to become a Singapore citizen, which doesn't allow dual citizenship. Since he's 20 years old, he had to get a physiological report to prove his sanity before his renunciation is approved. Not to mention after becoming a Singapore citizen he's legally obliged to renounce. Crazy
What a waste 🗑
I have never heard of this before, the embassies are well aware that people are renouncing for very sound reasons.
It’s crazy to see how tables have turned. US citizenship was once a dream of many people! Nowadays we see more and more Americans renouncing. Crazy really.
US Citizenship is economic burden on everybody living outside the US!
@@dexterspeights3484 are you living abroad yourself... or planning to? I imagine you are aware the many, many people moving from the US, especially to Portugal.
US Citizenship is a curse
I swear to fucking God the IRS always wants their money Wherever You Are it's like we are a slave.
Not many.. millions are waiting to get it just make an announcement. Ppl give up are only people who have no experience living in third world countries
Thank you!! This is good advice I was not aware of.
In a certain way, you’re inspirational, Michael. To this day we still can feel you are not natural speaking in front of a camera but have evolved a lot since you started. On another note, most of your content is helpful and accurate. Thank you so much!
I'll sell mine....:) Since I am renouncing this year. US citizenship is the gift that keeps on looting no matter where you live and work.
Absolutely it's completely unjust. Forget about "no taxation without representation", this is "taxation without services or infrastructure".
But you know what they say "he who robs Peter to pay Paul can always rely on the support of Paul"
@@MichaelRosmer We will be contacting you shortly to begin our new company structuring and renouncement.
Talk soon
@@OffshoreCitizen Yes, we are waiting contracts for a project and will contact you for best practices company structure, CBI options, banking and residency.
I don’t blame you .
Don't forget you don't have to do jury duty as non-citizen. I get summons every year and just make a call to get dismissed. I was planning to get citizenship still but I'm not sure anymore. It seems like life in US got a lot worse over the past decade and it's getting worse each day
2008 was the beginning of the end ... money printing, tax breaks for the Uber wealthy. Bush Tax cuts & Trump tax Cuts. The federal reserve has its head up its butt.
As a born American citizen yes I can agree with this if I could get out I would hate this country
If you are very rich or have citizenship of a stable country with a good passport to travel, then US citizenship does not make sense. If not, if you hope to retire somewhete else on US social security, then US citizenship makes sense.
You commented four months ago is still valid. (dammit)
Don't registered to vote an you will not do jury duty.
Love the videos! I’m actually American-Bulgarian and my mother is Canadian. All my friends getting their green cards could not believe my parents pay US taxes while living in Sofia for 20+ years haha. Keep up the great content.
Thanks
Thanks for the information!
This is exactly why I haven't done my citizenship yet, I'm still thinking of moving back to Switzerland. Even though Switzerland and the USA have a treaty to limit double taxation, you still have to file your taxes each year, and banks might deny services because of the hassle that comes with the citizenship. America is the freest country in the world until it isn't.
Apparently even in switzerland american get bothered a lot by uncle Sam, why do you think Tina turner rnounced her US citizenship and became Swiss?
America is free est country in world????
What freedom is in america that's NOT in Switzerland????
hey man, im in your same situation, did you move back to switzerland? ..what else have you found not applying for the US citizenship?.. I understand so far, the main con is Taxes. But also I feel like im missing what will be all the pros of being a citizen
I was on the same boat and decided not to apply my N-400, naturalize citizenship, and you just reassured my decision. I carried my national passport for over 30+ years and I paid ZERO taxes to my home country…
You can keep your nationality too.
So did you live in USA with green card.
You mean in the last 30 years you were here you did not work at all and did not pay any taxes or social security taxes? Wow, You should not be concerned about US citizenship, you should be concerned about IRS hunting you asking you about your home and car and where did you get that money without paying taxes?
@@edwardsl8016 it’s always good to have some internet stranger caring about me. Thanks for asking
@@edwardsl8016 You still pay taxes if you happen to work AND live in the US. He might not have, so should not be obliged to do so. This is actually a smart move.
I agree I work in an investment management company in Jamaica and we had to report all us citizen who has 50K or more to America. I had to work on Sunday to ensure the report was completed on time.
How wi go roun dat general. Dat mean say haffi invest a yaad inna family name ?Or if it less than 50k it nah get reported?
@@KONANYAHU_7 the only work around is to not show any proof that you are a U.S. resident. That means the you should ensure that the banks don’t have any information such as us drivers license, us address, US phone number or anything that might indicate you are living in working in the us.
@@KONANYAHU_7 but be warned FATCA act of America is a way to prevent U.S. citizens from doing tax evasion
Interesting topic . What's your view on those compact of Association countries in the Pacific like the Marshall Islands and Palau for example whose citizens have unique access to live and work in the US ?
Thanks a lot for a great video
Interesting video! In the UK we don't have to pay taxes from abroad.
However, if you take a government loan for your university studies and then move abroad, every year you have to report where you are living and how much you are earning to the government department which handles the student loans, and they will calculate a repayment plan based on factors such as salary and the country you are living in.
What asshole authored FATCA ?
@@FJF119 You can primarily blame FATCA on Mitt Romney's pension fund.
UK citizenship is better than US citizenship because of NO CITIZENSHIP BASED TAXATION on income or assets!
Most of Uk ppl work cash In hand and lives on benefits so why would you all want to file taxes
It didn't used to be that way. In 1979 my husband considered going to work in Saudi Arabia and we didn't have pay taxes in U.S. Ultimately we decided against going.
Citizenship-based taxation has existed for well over 95 years. You most likely didn't have to pay because of the foreign-earned income exclusion, but that only applies to wage income and you still have to report everything.
It was there before but never applied until dirty stinky Obama put it on the map
Taxation laws are different in many countries. However, pretty shallow to base a big and important decision like citizenship on some tax law alone. 😮
I’m half German/American and live in the EU and cannot wait to renounce my US Citizenship! I’ve told so many friends that moved from Germany and other countries to the US to NOT get citizenship for these exact tax by citizenship vs residency like the rest of the world!
cheap ass bruh
I’m a British green card holder in the USA. I was told by my lawyer that if my US citizen husband were to die and I’m not a citizen, I would lose 40% of our estate. Either way you lose money. I’m very torn.
Looting widows isn't what the US was meant to be.
So I'm an american citizen but I was born in Guyana, I'm not sure if I already have dual citizenship but i do taxes every year. Will I still be able to do what's needed?
Michael, you've raised some very good points on why people should not apply for US Citizenship. I have a house in Florida but I also live in Argentina with my native Argentinean wife. Which means, not only will the US Government tax me aboard, they will also dig into her taxes as well simply because she is married to me, an American, therefore, they will treat her as an American too, which potentially places her in hot water.
We are planning to have kids soon and once they are born, they too will be taxed because they will technically be Americans, despite not being born in the US, all because I am an American living part-time outside of the US. As you can imagine, none of us likes this policy because it is unjust and unfair. We are in a bit of a tight spot because on one hand, we don't want the US Government to tax my wife especially since she is not an American, but at the same time I don't want to renounce my US Citizenship since I go back home to visit friends and family there, and do some business too on occasion.
In the past, I have considered renouncing my US Citizenship, but only as a last resort. Instead, I discovered that living in the US Virgin Islands is a great alternative option for Americans because it is a part of the US, but it offers more benefits than living in the US. For starters, Americans who choose to move there can decrease their taxes to at least 90% and in some cases, they could even reduce them practically to zero, depending on their situation. On top of that, they have beautiful scenery, especially the beaches, friendly people, crime is relatively low, it is generally safe especially in the St. Johns area, advanced healthcare, excellent schools, and delicious food.
For those who are interested in this alternative option to renouncing your US Citizenship, please check out this short video on the US Virgin Islands:
th-cam.com/video/pHNDykBFj74/w-d-xo.html
And yes, Puerto Rico is another option, however, I do not recommend it for the following reasons stated in this video:
th-cam.com/video/vnBNP7_LSmw/w-d-xo.html
And for those who are still hell-bent on renouncing their US Citizenship, more power to you! I just wanted to let you know that there is another option besides giving up your US Citizenship. Hope this helps! :)
if you are talking about FATCA yes you get double taxation and this is not only for Citizens but legal residents as well. This is why this FATCA thing is being enforced by foreign banks.
@@CLAUDIOILTEXANO You're welcome, Claudio, my pleasure! :)
You may want to consider what I am planning to do, that is, utilize the Five Flags plan (a.k.a. The Perpetual Traveler). It is a bit complicated to explain in detail, but I will attempt to summarize it as best as I can.
The perpetual traveler idea has been presented in terms of flag theory, wherein each flag represents one of the legal jurisdictions under which the perpetual traveller operates. The Three Flags Theory is credited to investment pundit Harry D. Schultz, who proposed that everyone should have a second passport and an address in a tax haven and that their assets should be kept outside their home country. The idea was later expanded to Five Flags to include a place where money was earned and a place for recreation.
Whether to minimize governmental interference (via taxes or otherwise), or to maximize privacy, the theory proposes that each of the following should be in a separate country:
Passport and citizenship - in a country that does not tax money earned outside the country or control actions.
Legal tax residence - in a tax haven.
Business base - where one earns one's money, ideally somewhere with low corporate tax rates.
Asset haven - where one keeps one's money, ideally somewhere with low taxation of passive income and capital gains.
Playgrounds - where one spends one's money, ideally somewhere with low consumption taxes.
In 1995, financial commentator Bob Beckman commented about his residence in Monaco: "A long time ago, I was told that the most efficient way for an individual to handle his affairs was to work one place, keep his money in a second place and live in a third place. I live in Monaco. I don't work here, my money is placed elsewhere, but managed from here."
In our case, it is as follows:
Citizenship: My wife keeps her Argentinean citizenship and I keep my American and Argentinean citizenships.
Legal Tax Residence in a tax haven: US Virgin Islands.
Business Base and Playgrounds (such as Permanent Residence): Malaysia, Singapore, and Columbia.
And for vacation beachhomes: Uruguay and Florida.
The US is in decline and collapsing before our eyes, ditto for Canada and Europe because they are in too much debt, they will never be able to pay it back. The bad news is Western civilization is dying but the good news is that Eastern civilization is rising. The 21st Century belongs to China and Southeast Asia. Heck, even some South American countries such as Paraguay and Columbia are rising even faster than some regions in Southeast Asia!
Anyway, the beauty of Five Flags is you can adjust it to your specific needs because it is not a one-size-for-all or you can decide to do Three Flags or just Two Flags. The sky's the limit! :)
@@AmazingPenny True, FATCA was implemented by the US Government in 2010. Thanks to this policy, it has become a major headache for many Americans who are living abroad. As a result, many Americans have taken the drastic step of renouncing their citizenship. At first, renouncing your US Citzenship was free but after the US Government began to notice the increasing numbers of Americans renouncing their citizenship, they decided in their "infinite wisdom" to charge them an exit fee which was about a few hundred dollars at the time. But today, it costs $2,350 and to make matters worse, that number will only increase over time, mark my words. They really enjoy making our lives harder and harder that it will lead many Americans to renounce even faster. Time will tell.
@@gammaechofoundationproductionsSo true. The only way to avoid this FATCA is to renounce citizenship but if you are still a resident in USA FATCA follows you.
@@AmazingPenny Hello again, Penny! :) Yes, renouncing US Citizenship is one of two ways to avoid FATCA, but as I've explained to Claudio, the other option is to live full or part time in the US Virgin Islands. It's a little loophole in this massive ball of wax! ;)
As someone who just recently got his birthright us citizenship i gotta say that the last thing i care about are taxes, especially after having to deal with the german taxation system for decades. Also don´t have to fear paying double or anything like that. It´s really just sending in the forms and stuff, but that is common stuff other than that, with a annual income far lower then what the us deems to repay or rather "equalize" your tax there´s not much to do.
What are your thoughts about obtaining Canadian citizenship, same story?
Hmm, if my family own a house in europe but i become us citizen do i have to pay property tax on it even if my country does not tax the first home?
I am US citizen moved 3 years ago looking to renounce my citizenship
better options in life around the world ..Move On ..
I would think before giving us citizenship, in case of a medical emergency and want to fly to the US ,you may have problems with immigration.
A medical emergency that will ruin you in order to get treated by the US health system?
You need to address that having a green card for 8 years (which can be as little as 6 years and 2 days, since a single day in a year counts as a full year) makes you a permanent tax resident of the USA, and even if these people give up their green card and move back to their native country they still have the same filing requirements and have to go through the same process as a US citizen renouncing their citizenship in order to escape it.
wow that's crazy!!!
Wow.
How do you renounce what you never had?!
@@CLAUDIOILTEXANO Again this is not true if you have the Greencard over 7 years.
@@CLAUDIOILTEXANO You are incorrect. I have my information from an unimpeachable source of a money management firm for clients whose ONLY focus is managing money for those who are overseas or "cross border"; they know all the rules inside and out - if you have a green card for 8 years (which can be as little as 6 years and 2 days, because any one day in a year counts as that year) then you become a permanent tax-resident of the USA, even if you leave, and even though you are not a citizen, and subject to having to file a tax return on your worldwide income just like a US citizen ex-pat.
@@CLAUDIOILTEXANO I'm willing to take the word of Thun Financial, the company involved. They have webinars on YT that you can find and watch. Or you can look them up and call them; they will answer your question.
Well done. Thanks. I liked and subscribed with alert. Italy also requires filing and declaring worldwide income if in country for more than 180 days. I suppose difference is USA requires it even if zero days?
Yes exactly. The Italy situation with 180 days per year counting as living there is pretty standard. But the U.S tax system is involved even if you haven't set foot in the country in years.
@@TerraThink Boris Johnson was the PM of the UK who had the misfortune of being born in NYC while his parents were working there for their British company. The guy was forced to pay US capital gains taxes on the sale of his house in the UK and a fee to renounce his US citizenship. He also was subject to the US expatriation tax as I understand it.
Currently trying to figure out if I want to follow through with my green card application and these videos have been super helpful! Thanks so much. Would love to learn more about how this would affect a spouse and inheritances
You can go to many countries that bum their freedom off the US.
You better continue with it.
That was his opinion...
Look for the good things, the reason you are here and achieve those goals.
@@smallderick9099 Our economy sucks in America
If you're young and healthy why not?
@@scottievaldez4194 but the biggest in the world ,
Although I get what you are saying.
very good. Am I right to think that these tax rules apply to green card holders? i.e the global tax rule. As an an Australian there are some attractive things about the US compared to here but I'm a crypto investor so in future will be looking for asset protection, not death by tax reporting.
there is no difference between rights of US citizen and Green Card holder, except US citizen can vote, everything else is the same.
@@edwardsl8016 A few things, such as unlimited spousal exemption, i.e. unlimited amounts can be transferred to a citizen spouse but not to a non-citizen one
But how about a person like me im an american citizen living in Israel ,but i don't have my own business or company i , just work in a israeli factory getting pay a regular salary in shekels , i don't have a big money in my bank account in israel i just live on my israeli salary,so do i still need to file american taxes or pay tax to usa? thank you.
Hi Micheal could you please make a video or tell me in the comments what are all the options for a Canadian citizen to live in US who is self employed?
It's sort of funny how one IS an American when it is tax time but not one when its "running for president" time.
Yeah, but the US has the largest capital market in the world and the most job opportunities. You can make 50-100% more for the same job in the US vs other first world countries. The much higher income and access to these jobs far outweighs the disadvantages of the taxes.
Everyone's situation might be different, my husband's citizenship appointment is set for next month and he's exited to be able to travel freely . God willing all will work out for us 🇺🇸 🙏. I'm born and raised American
yes the passport makes it great
us passport has the most ""visa"" around the world
Why your husband cannot “freely” travel? I am green card holder and I travel around the world with no problem
@@Imyourfather225 but I think that depends where your original Passaport is from. If American Passaport you have more options and when you come back you can go to citizen line and less bureaucratic
American from where America it’s a continent not a country.
@@cnccarving lol no
I have duel citizenship. I didn't want to get American citizenship for tax reasons. What would happen if I travelled an moved and worked as a Canadian and not an American? What would be the consequences of giving up my citizenship. Would I loose my pension? I feel stuck, because I cannot afford to live in the USA and I am not really happy with the culture.
No you would not lose your pension or soc sec.
Excellent video.
50% fine seems pretty high to me. I used to pay 33% tax when I was in H1B visa. But 50% is outrageous.
Hi, thank you! I didn’t realize we Canadian’s don’t have to do the ‘file taxes’ back home in Canada once I move abroad. Great to know!! (Interesting, my daughter has dual, Canadian/US citizenship).
You're welcome yeah if you're non resident as a Canadian you're good
Canadian Citizenship is way better than US Citizenship because Canada has no enemies, citizenship-based taxation and draconian tax laws like the US!
@@dexterspeights3484 I'm completely grateful for my citizenship Dexter! My daughter was born in the US but when her Dad & I divorced, I brought her back and raised her in Canada. She lives in NY now but she has her Canadian citizenship and her Canadian values. Thank goodness.
@@JenShea I'm from NYC & New York is doomed from Economic Fallout via Contagion COVID-19
green card is great , USSA citizenship not so much
lol, I moved overseas and renounced my US citizenship 5 years ago...don't miss it at all
How was your experience with renouncing and moving?
@@OffshoreCitizen it was not that bad...I had to pay the IRS a one time fee of around 2300 dollars (I guess they have to get one last piece of you), I filed the necessary forms with the state department and formally renounced my US citizenship at the US consular office in my adopted country. It was very liberating, and when I want to visit family in the US, I travel there on a visa.
@@neckarsulme Where did you move and what is your passport ?
@@gratitudetouniverse3754 Spain, I acquired Spanish citizenship prior to my renouncement
You are just plain stupid
Agreed on those points. However, having a US citizenship means a lot of Visa-free countries which is a good plus. But some other passports offer the same value in that sense, I agree.
Definitely. There are pros and cons.
What passport/s do you consider as the best?
@@OffshoreCitizen I would love to have passport somewhere in EU :) At least for easy navigation in Schengen.
Japan
They don't have visa free access to Australia, or didn't a few years ago, and that is a popular tourist destination.
@@grancitodos7318 Japan has the most visa free access passport in the world which is why it is currently ranked the most powerful passport.
My wife's a Canadian getting her Green Card this year. Yes, some of the US tax laws are pretty screwy but I will never renounce my US Citizenship.
I agree 💯
Because you shouldn’t have to renounce just to get out of a tax system, the US won’t but they should switch to a residency based taxation system like the rest of the world.
@@thedeutschman9905 Although I agree with you, other countries are now considering doing the same thing in world-wide taxing just like the USA.
Such tax restrictions are not applicable for green card holders, right?
I'm retired and in the process of claiming Italian Citizenship by Descent. I intend to move to Italy and settle there. I want the EU Passport. When I leave the US, I won't be back. I have no family left in the US.
I assumed I'd have to retain US Citizenship to keep my Social Security. Is this true? Or can I continue to receive my Social Security if I'm no longer a US Citizen?
after all these years you want to give up your citizenship yet you want to receive SS checks? If you're retiring, keep your citizenship and claim the Italian if you wish, and since you are retiring what millions are you afraid of reporting if your first 100K is tax free and you do not pay taxes on your ss checks. So why give up the citizenship?
I’m sorry if I offend anyone, I’m proud to have dual citizenship with Greece and USA and love paying taxes more taxes I pay means I had a better year, taxes helps the country grow without USA this world will be way worst and for sure (offshore citizen) won’t have a platform (TH-cam) to rant against US and paying taxes. US the only country that believed in me, and inspire me to open my 2D animation company now I live in Southern California and have an avocado farm in central coast now I go back and forth helping my people back in Greece. If taxes is to help this country to continue to grow I’m all for it. It’s just me but when I hear people talking about changing states or even country to avoid paying taxes It just repulsed me and see them like leaches sucking everything they can and then just leave most likely to continue to suck.
That's what happened to Our British prime minister Boris Johnson because he was born in America he was caught up in two tax system couple of years ago when he tried to sell his house in England. US government wanted their cut so he had to denounce his US citizenship. God Bless America but I will forever remain a British Londoner. Love Americans they have good hearts and we are Allies.
If you renounce US citizenship can you still make a claim on your social security? What happens to withdrawal from IRA accounts?
Not sure about SS, But all other retirement plans stay in place. Those are YOUR accounts and not of the government.
Wow, thank you so much, I was born and have lived most of my life in Canada but my mom registered me as an American too. My U.S. passport expired a year ago and I was going to renew it but now I think I will apply for a Canadian one. I hope I can fly under the radar. I am on a disability and my income is negligible . I have dual citizenship. I pay Canadian taxes and only vote in Canada.
You're basically just Canadian though if you were born and raised there. If you came to America people would consider you Canadian.
Commenting on your US citizenship on TH-cam is not flying under the radar!
Can you do a video about foreign yachties becoming a resident in the US and US tax laws and specifically crypto tax laws?
Interesting idea!
We'll see what we can do
Stay tuned :)
What about living offshore, in international waters?
I married an American citizen and I'm considering not going for the citizenship because of the hassle and because we will move abroad in the next years. I am gonna have to pay taxes anyway if I'm married with him but I have only a green card?
Yes, typically you’ll have to file and pay US taxes if you live abroad even if you only have a green card. As for the citizenship, there are many factors to consider. Your other citizenship, future plans, will you come back and spend the rest of your life in the US, etc etc.
Not a simple decision
I am an Irish citizen with a Green card, which I have held the past 22 years. I am considering applying for Dual citizenship. I am now retired, I pay taxes on my small military pension from Ireland and taxes on my US Social Security. My question to you is, should I continue with my Green card or move forward with my application for US citizenship? Thanking you for your time. Mary L.
Complex question depends a lot on your circumstances
What age are you? It looks like you are retired. It would be easier for you then, in a way that you may not need to pass the interview. I have dual citizenship French American. Best of luck to you.
So what about the tax treaties or the foreign income exclusion or the foreign tax credit to avoid double taxation?
That avoids double tax but then you pay the higher of the two taxes.
You'll still have all the paperwork.
FEIE is fine but only for low income thresholds.
I used to dream about US citizenship. I lost that dream. I would refuse American citizenship even sans strings. Its become such a liability, too demanding, too much baggage, and lost its status of credibility in general. The country has ignored way too much for me to want to jump in.
It also seems like schematically the US didnt intend for its diaspora to leave its shores. Like it didnt want them dreaming of elsewhere or dare I say lose the Merican mentality that i will comment no further on.
America is a plantation. The citizens are nothing more than tax cattle. Our voices are not heard, nothing is reasonably affordable. Your children are abducted from you by the family courts. America is ass. Im not proud to be American, i dream of leaving this forsaken country, but FATCA and family court laws make that close to impossible.
How about Japanese passport? Do you think it is a good idea to get it if I can?
Japan will be turned into ashes when taiwan is under ccp control. Abe is dead, so don't expect any leadership from japan anymore. Not a single american paid attention when abe was assassinated and japan is the top ally of america in east asia. That should put things into perspective.
Good presentation...in Eritrea they have the same problem but taxes are much lower there...
That and they have no ability to enforce
@@OffshoreCitizen They can refuse to issue passport renewals
Taxes are a headache everywhere.
I’m German citizen and I signed out as I left!! I live in America and I will never take American citizen! Even I didn’t know about taxes but I don’t want loose my europäischen passport!!
What am I missing? Doesn’t US have some of the lowest taxes in the developed world apart from tax havens like Dubai or Monaco.
Unless you plan to work outside the US
One point to mention is if you have had a green card for seven years you are treated the same as a citizen for expatriation purposes without any of the benefits - the guaranteed right to live in the country and unlimited spousal gifts. As a green card holder if you commit a crime they can kick you out. So paradoxically, it makes sense to become a citizen at that point.
Very good and little known point.
Good point
One other key point is Green Card holders lose their residence status after approximately one year living abroad. You actually have to get a little Green passport looking permit to be allowed to return after this long and you have to apply before leaving. After the year away you lose the Green Card but not the effective US tax status if you have lived in the US for seven years. So you can’t live in the US, you are not a citizen and you pay taxes. How is that for being royally screwed!
@@ian7379 But if you are not in the US how would it be enforced?
@@samspade2657 The US has pretty strong policing of tax cheating US citizens (or defacto citizens). If the tax owed was significant you would be arrested if entering the US, could be extradited, and generally, your life made unpleasant. Probably you would also have your name published somewhere painting an unflattering picture of you, and your name registered with Interpol. I don't think it would be worth it.
For high net worth individuals, the E2 visa would be a good choice. E2 visa holders are entitled to the same benefits as green card holders, but they can maintain non-resident alien status as long as they do not spend over 4 months in the US in a natural year (to meet the requirements of substantial presence test). Then you can legally do business in the US and avoid those tax things.
Most people who file get more back than what they put in unless the economy is better where they're moving.
I would be thrilled to trade my US Passport for a Hungarian or a dozen other citizenship. Cannot wait to renounce and move.
HUNGARIAN PASSPORT is a MAJOR UPGRADE from US PASSPORT!
1) EU PASSPORT
2) OFFSHORE BANKING or INVESTING without RESTRICTIONS of US PASSPORT
3) HUNGARY HAS WAY LESS ENEMIES THAN US - TERRORISTS LOVE 2 KILL US CITIZENS on U-TUBE!
4) CORRUPT POLICE in 3rd COUNTRIES LOVE SHAKING DOWN AMERICANS 4 CASH!
I feel the most important one is the MAC, everything else is eventually going to be unsustainable in terms of quality
@Autumn Most powerful second and third citizenships for Americans by quick permanent residency by investment
th-cam.com/video/tnQS8v4mVRA/w-d-xo.html
Me too. I actually hate it here in the US. The quality of life has only gotten worse.
Being an American and holding American citizenship is the greatest thing happen to me. I wish you were born in a fourth world autocracy and lived there for some period of your life, just to understand what US is giving in terms of financial freedom. Gratitude is a quality similar to electricity: It must be produced and discharged and used up in order to exist at all.
Fourth world? Moreover there are people in extreme poverty in every country including the US. Also there are people who are well off in every country.
Thanks for this Information i didn't know that lucky me 😂
What if a child is a dual citizen (Canada/American) and grew up all their life in Canada? Do they have to file taxes when they are 18?
So How to Avoid US Double Taxation as an Expat
1. Tax Treaties
The US has a number of tax treaties in place with foreign countries to prevent US double taxation. The two main types of treaties are:Income Tax Treaties
Totalization Agreements
2. Foreign Earned Income Exclusion
For some types of income, you won’t have to bother scanning tedious tax treaties to prevent US double taxation. Expats who pass the Bona Fide Residence Test or Physical Presence Test can use the Foreign Earned Income Exclusion (FEIE) to exclude up to roughly $100,000 of foreign earned income from their US tax obligations-regardless of what country they live in.
3. Foreign Tax Credit
Of all the possible ways to avoid US double taxation, the most reliable is generally the Foreign Tax Credit. In fact, this credit was instituted for the sole purpose of warding off double taxation for Americans living abroad.
Yes they need to file taxes when they are 18 if they are a dual citizen
@@OffshoreCitizen in conjunction to that question. When do kids that are now still on the parents tax form (age 20) have to file their own US tax? (they are in college abroad)
I live in PortugalMichael gave me some great advice and referred me to a colleague to finish up and implementing his ideas I am a US citizen with a US company so this kind of advice is beneficial. However weeks have gone by and have not gotten any follow up. Not sure if they are one vacation or why I am being ghosted.
Michael is currently travelling and was attending a conference this week. He'll be back to his regular schedule next week :)
I am Naturalized German American citizen living in Silicon Valley. My tax bracket is as follow: Federal 35%, State 12%, property 1.2%, social security 6%, medicare 3%. Planing to retire next year and I will get the maximum allowance social security benefit, a small pension from Ex employer and have and close to 2 million in my 401k ( after the market meltdown 1 million ). What is the best course of action for?
Move back to Germany. It's a very bad idea to retire in the US when you have the option of living elsewhere.
geh doch iwo hin wo da leben noch lebenswert ist,gibt genug andere Länder wo man mit der Rente wie der König leben kann
Is there any difference tax related to someone as resident or citizen?
If you're a permanent resident (Green card holder) or a citizen you will need to file and pay American tax even if you move out of the States.
If you're a temporary resident, for example, a student or a seasonal worker you only pay taxes while you're in the States. Once you leave you don't have any tax obligations anymore
I acquired U.S. citizenship last year and it is the best thing that ever happened to me
I find this video one day after getting my US passport
The only 'passport' if ever you require is passport to Heaven...
Hahaha!! You religious folks are a very funny lot!! So is this heavenly passport invincible or there's a physical location where one can apply? Have you applied and obtained this passport? 😃😃
Ok thanks for the info I am an American citizen i lived there for 30 years I was hurt i 2020 so I moved back home to be with my family because I had no family there I did my taxes for 2020 because I worked but I haven't worked since then so I didn't do 2021 am I going to have a problem thanks have a great day.
You still need to file.
What is the threshold for getting fined I am an American and irish citizen and have lived in ireland since 2008 and never knew about this didn't file taxes in usa since 2007 but dont really have much money so am I safe... moving back to nj this year
You’ll owe them thousands dude. See a lawyer
You're screwed
Look into the streamlined filing procedures and contact an accountant. They will help you through the process, but it can be costly!
I believe it doesn't matter what you make, you have to report it (there is a special form); if you don't, you are subject to a huge penalty, but check it out, maybe it depends on the country.
Find a good tax accountant (verbal recommendations from clients) at an HR Block in your area of NJ. Their fees are reasonable, and they are constantly trained to keep current on changing tax laws. Good luck!
When you open a bank account you dont need to report all the citizenships that you have. If you open an account with a non-US passport as a dual citizen how would the bank know to send reports to U S ?
They might not know. Of course if you don't report to the US they fine you 50% of the account balance per year...
They won't
Can you also clarify that US has a double taxation treaty/ understanding with certain countries, say like India. So, if a US citien wants to stay in India and work there, he/she doesn't need to file tax in US as per this Double taxation understanding with India. Is my understanding correct? Can you please throw some light on this scenario?
No US tax rules don't work like that. Americans always are subject to US tax rules no matter where you live
I am looking at my US citizenship more and more as a liability.
1. If your income is below $100k you don't pay taxes in the US. You can also write off your foreign income tax. Contact a tax filing company so they can teach you how to file as a non-resident before you leave the US.
2. If you're a dual citizen, don't show your US Passport. It's not normal for banks to ask if you're a US Citizen. If you have an account with a few thousand dollars to pay your bills, nobody's gonna raid your house and put you under arrest. This is meant for millionaires that are cheating the IRS.
3. If you have foreign bank accounts with significant sums in them and purposely trying to hide it from FBAR and IRS, you're in the wrong.
4. US Citizenship is meant for people who wish to build their life in or around the US. It's not a trophy where you get the citizenship and leave, there's pros and cons.
1. only earned income, to be exact
Even getting a offshore trading account to invest your cash is hard to get if you are a US Citizen because most offshore brokerage houses do not want to sell out clientele to the IRS in America!
Yeah terrible though there are some options
@@MichaelRosmer So I've very, very recently been discovering about all of these issues with US citizens living abroad, even if they've lived abroad literally all of their life but still possibly having to face these harsh penalties, taxes and so forth. And with sooo many limitations regarding trading accounts outside of the US too (currently living in the UK and wanted to open a shares and stocks isa for one but I don't even think it's possible to my very upsetting realisation but limited understanding).
Do you reckon you could shed light on what these options are that you mentioned?
@@Eezee01 which options are you referring to?
Pleeeaasseee someone tell me how I can cancel my citizenship interview!!! It’s already scheduled but I don’t wish to go through with it!! Please help
Don't show up. Citizenship will be denied.
wow, a stupid video changed your mind? You must have been at least 4 years if you were married to US citizen to get to this and 6 years if you immigrated and with one video you changed your mind? Usually it takes one year less, but due to the pandemic an extra year has been added.
Agree on all points Michael however most of these obligations (aside from tie-breaking tax treaty provisions) equally apply to U.S. permanent residents (green card holders) and continue on when/if the person becomes a U.S. citizen therefore I would say the question is actually whether to become a U.S. permanent resident (the threshold point for these obligations) or not.
Well the difference is permanent residents can pretty easily leave and cut ties with the US, citizens not so much.
As a Canadian citizen and US green card holder, I hope it turns out to be pretty easy when I'm ready to leave. I fear the tentacles of the IRS may prove sticky!
@@CLAUDIOILTEXANO So you mean if green card holders go abroad and work, they still have to pay taxes to the US?
Can we forfeit our Social Security Number? And, why wouldn't I want to give it up? I would love for you to address this topic if you are brave enough.
Worldwide taxation without real benefits unlike other countries that have tangible benefits like free healthcare, statutory leave, etc.
Nothing is free
The "United States" means only the District of Columbia and "it's" territories; (not the fifty Union states) in the tax code - 26 USC 7701(a)(9) and (10). Doing/conducting a "trade or business" in the "United States" (DC) means "the performance of the functions of a PUBLIC office - 26 USC 7701(a)(26). An "employee" is an officer or employee of the federal government 26 USC 3401(c).
I was living in the states with L1 visa which would allow me to ask for a green card, once I started getting involved in Finance I gave up on that plan, specifically for this reason of taxing me on my worldwide income
Good video! Thank you!
I wonder whether it would affect the social security benefits if you’re not an US citizen, and you worked all your life in the US as a permanent resident, and then you decide to retire in another country…
Wouldn’t you jeopardize your social security benefits if you leave US being a non citizen?
Yes. You can't receive Social Security benefits outside the US if you are a permanent resident.
nonsense
@@candidarivera612 not true
facts is $10,000
If you have paid soc security in the US and worked for 10 years or 40 quarters, whether you are a citizdn, non citizen, non resident now and live abroad you ARE entitled to your soc security and its paid to you in the country where you now live. Fact!
What if you are permanent resident of US ? Same obligations or not?
You mean with a green card then yes same obligations
Well thats something to think about 🤔
From this google search, some taxes are unavoidable, even if renouncing?
+++++++++++++++++++++++++++
As long as you're eligible for benefits based on your own Social Security earnings history, you can continue to be paid benefits even if you're no longer a U.S. citizen. However, while living outside the U.S. you would be subject to an alien withholding tax which will result in the withholding of 25.5% of your benefits.
Are you saying there is a scenario that the USA does not withhold 25% from an alien’s soc sec? The withholding implies that they expect the alien to file a tax return To see if they can get any of it back?
@@CLAUDIOILTEXANO I don't see any citizenship by investment on the list!
In US everyone want to rip you off however they can. Everything is about money here ...
Until the country you move to have war then where should you go. Always have many than one citizen.
I hope the legislators in the house and senate can do something about it before we see massive exodus of talents and wealth out of the United States as clearly this taxation by citizenship doesn't really work.
Yes they are definitely looking to do something about it...raise taxes more!
The problem is there's not much of a voting block among expats especially those who have renounced so instead of trying to make it more attractive they try to keep them in the US.
There's a, screwed up incentive system where the incentive is to get re-elected
@@MichaelRosmer That's right.
From the looks of it, the US gov welcomes a brain drain. Its policies are leading the country into annihilation.
Right… while Bezos pays $0 in taxes because his money is held in Amazon stock. The system was rigged a long time ago.
Hi, how much is a consultation fee?
You can check out all the fees here calendly.com/michael-rosmer
Australian Example: Foreign resident for tax purposes (from Australian Tax Office)
Bronwyn, an Australian resident, receives a job offer to work overseas for three years, with an option to extend for another three years. Bronwyn, her husband and three children decide to make the move.
They rent out their house in Australia as they intend to return one day. While overseas they rent a house with an accommodation allowance provided under Bronwyn's contract.
Bronwyn is unsure if she will extend her contract to stay for another three years. She will decide later depending on how the family like life.
Bronwyn is considered a foreign resident for tax purposes because she does not satisfy 'the resides' test. This is due to:
the length of her physical absence from Australia
other circumstances not being consistent with residing in Australia, even though she has retained the family home - such as
establishing a home overseas with her family
renting out her family home in Australia.
Bronwyn has also not satisfied the domicile test, as:
(a) her permanent place of abode is outside Australia due to
* the length of time committed to being overseas
* the establishment of a home overseas
* her family going with her overseas
(b) the fact that she won't be selling the family home in Australia, although relevant, is not persuasive enough to overcome the finding on the basis of the other factors, and
(c) it can be argued that she has abandoned her home in Australia for the duration of her stay, by renting it out.
The first $108,700 of Foreign Earned Income is tax free, except for FICA. I've joined banks on 3 continents and it was literally no issue at all. In fact, the banks in the Middle East fell over themselves because, well, the US is the richest country in the history of civilization. My Interactive Broker account gives me global access to every market on Earth as an American...literally no restrictions. Regarding crypto, get a Coinbase account and get however much you want as an American citizen. Finally, if America is so anti-business, how is so much of Earth's wealth created there?
How much is America riding on its past vs creating in the present?
@@OffshoreCitizen One could argue that America's Glory Days have passed, and find evidence for that argument. I'm not all Rah-Rah America...it has it's faults...I live and work abroad. But you made specific statements about taxes, banking, and crypto to which I have current, personal experience to the contrary. I'm currently working with the Import/Export Bank in the states, the USDA, and the International Trade Association on a global product, and man they are tripping over themselves to assist in any way possible. The USDA even paid 50% of all expenses to the recent Gulfood Expo in Dubai for my colleague, including airfares, hotel and meals. I know the USA tries to be everybody's big brother and is more or less a bully, especially to a Canadian. I get that. But America is also pro business if you know where to look, and US Citizenship is not the albatross around the neck that you appear to believe it is.
Also worth mentioning, I recently found your channel and find it useful and interesting.
Agree with you 100%, not sure where his information is based from? Man I know so many Canadians even want to live in the USA and use NAFTA just to do so. Shame how he is spreading misinformation. I would be cautious about renouncing the US citizenship, because once done, getting back is not possible as remorseful person.
That only applies to salaried income. Foreign interest and capital gains are fully taxable.
Americans who live abroad can't invest in tax sheltered retirement savings plans where they live (the equivalent of Individual Retirement Accounts, 401(k) accounts or Roth IRAs) because those accounts are not tax sheltered under US law. The interest and capital gains realized by those accounts are taxable in the US each year, even though they are not taxable during those years in the countries where the person lives.
That makes it very difficult to almost impossible to save for retirement.
Seems very onerous. I understand even just doing annual taxes within the US is somewhat harrowing.
I have to file taxes for a dormant S-Corp by tomorrow in the US. It has no income, & has not operated in several years, but because I didn't, realize the tax filing deadline was a month earlier than that personal filing date the first year I opened it, the tax penalty on that corporation along with the annual tax for a defunct corporation due to the state means I haven't been able to shutter the bankrupt business. It also means I will spend about 2 hours filling out forms for a company with zero activity before tomorrow. Basically a bunch of zeroes on the form.
Yeah they aren't the worst forms to complete but definitely far from the best.
Is this same for green card?
Thank you for sharing this valuable information, especially for US citizens. May I just make a recommendation? if you speak more slowly, deliberately and breathe in more deeply, you will not lose the strength in your voice mid-sentence which is causing that shallow, raspy sound (which can be painful for you). Try meditation to focus on and relax your vocal chords and throat chakra. Thanks again.
The Oath of Allegiance USA
“I hereby declare, on oath, that I absolutely and entirely renounce and abjure all
allegiance and fidelity to any foreign prince, potentate, state, or sovereignty, of whom
or which I have heretofore been a subject or citizen".
Can you explain how one can be a naturalized citizen of the US and also be a citizen of another country, without breaking your Oath and the Law?
What happens if the US goes to war with the country that you are also a citizen of and both draft you for war?
Apropos to what I wrote below. One of my three grandsons, (7 Years Old) is a US citizen) . When we travel ,hes to go through a different gate, we have missed our connections so many times because he has a different name and I am questioned why he is with me.