[Symbiote]

Being able to return to the USA, and visa-free access to more/different countries compared to the new citizenship.

Renouncing American citizenship is extremely rare, as these figures show. The taxation is a paperwork hassle, but you need a very high income to actually owe anything -- for most, the higher tax rate in the new country offsets the American tax due.

[Dolores12]

So you call it benefit - paying 30%+ of your income in taxes worldwide instead of paying 20$ for visa on arrival? That makes no sense.

[cr1895]

>paying 30%+ of your income in taxes worldwide

This is a big misunderstanding of US taxation. Every US citizen must file their taxes on income earned anywhere in the world, even if not earned in the US.

However, for most people, it is very unlikely to actually pay any additional tax to the US government.

https://www.irs.gov/individuals/international-taxpayers/u-s-...

"Your worldwide income is subject to U.S. income tax, regardless of where you reside."

But there's the foreign earned income exclusion:

https://www.irs.gov/individuals/international-taxpayers/fore...

[beagle3]

If you have any kind of saving or investment outside the us, say, a pension fund or a mutual fund, then you do owe quite a bit even if you live in the US (more if you don't). Almost all of these investments/funds are a PFIC by US rules, which means a world of pain - to the point that over 20 years you are likely to have to pay more in taxes than however much money you have there.

[seanmcdirmid]

After you make $100k, there is also the foreign tax credit. In most countries, you don't need to bother with the foreign earned income exclusion unless you are not paying tax at all.

[Symbiote]

You need to be earning over $100,000 a year, and live in a country where local tax is lower than in the USA.

That's not especially common.

Further details: https://www.americansabroad.org/us-taxes-abroad-for-dummies-...

(I'm not American, but none of several close friends in Europe with dual US/something-EU citizenship have given up their American citizenship.)

[nvarsj]

It gets WAY more complex if you don't have a standard salary job. Even if you don't make over 100K a year. E.g. small business owner expat is in for a world of pain, stress, and audit.

[tryingagainbro]

You will (probably) NOT get another visa to USA if you renounce for taxes.

[kogepathic]

You cannot/shouldn't renounce your US citizenship for tax reasons. [0] Every piece of advice you read from anyone online will say the same thing: if you must give a reason for expatriation (and you don't have to), say anything but taxes.

You don't officially have to give a reason to renounce, but consular officials might ask you verbally for your reasons. You are not required to give one though. You have the option to include a written statement, but I'm not sure why you'd ever want to take it (unless you really want to give them additional reasons to deny you entry).

[0] https://en.wikipedia.org/wiki/Reed_Amendment_(immigration)

[Symbiote]

I would presume it's no problem if you actually paid any owed taxes.

[tryingagainbro]

If they determined you did for taxes, it's a no-no: Former U.S. citizens would be required to obtain a visa to travel to the United States or show that they are eligible for admission pursuant to the terms of the Visa Waiver Program. If unable to qualify for a visa, the person could be permanently barred from entering the United States.

If the Department of Homeland Security determines that the renunciation is motivated by tax avoidance purposes, the individual will be found inadmissible to the United States under Section 212(a)(10)(E) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(10)(E)), as amended. https://travel.state.gov/content/travel/en/legal-considerati...

[pc86]

I don't think you understand how taxes work. US tax rates are marginal, so for your effective tax rate to be 30% you'd probably be earning several million dollars in payroll. Very unlikely. Not to mention the fact that if you're an expat, income tax paid in your country of residence counts toward your US tax obligation.

If you live somewhere with higher taxes, you owe the US nothing. If you live somewhere with lower taxes, you owe only the difference.