“Renouncing your U.S. citizenship will not automatically cancel your tax obligations. Prior obligations remain, so you would only be a non-resident on an ongoing basis. You must notify the IRS of the change in your status by filing Form 8854 and then filing a copy with the Department of Treasury as well.
You will be treated as a U.S. citizen for tax purposes until you file this form. The same rules apply to green card holders. You must file the form as soon as possible after you renounce your citizenship.“
To make matters worse, there’s an exit tax (https://americansoverseas.org/en/knowledge-centre/us-taxes-a...). That applies only if you have over $2 million of net worth or “if you have not complied with your US tax obligations for the last five years.”
You pay it over all your assets, including houses and future pensions, and it’s up to 23.8%.
“Renouncing your U.S. citizenship will not automatically cancel your tax obligations. Prior obligations remain, so you would only be a non-resident on an ongoing basis. You must notify the IRS of the change in your status by filing Form 8854 and then filing a copy with the Department of Treasury as well.
You will be treated as a U.S. citizen for tax purposes until you file this form. The same rules apply to green card holders. You must file the form as soon as possible after you renounce your citizenship.“
To make matters worse, there’s an exit tax (https://americansoverseas.org/en/knowledge-centre/us-taxes-a...). That applies only if you have over $2 million of net worth or “if you have not complied with your US tax obligations for the last five years.”
You pay it over all your assets, including houses and future pensions, and it’s up to 23.8%.