Citizenship-Based Taxation is an outlier. The world is leaving, are you next?
Real-time metrics on US citizenship renunciation patterns.
The largest single-year exodus on record.
Individuals born in US who left as infants.
Cost to process the application alone.
The story of Boris Johnson (former UK Prime Minister) remains the most public and illustrative example of the "Coverd" Exit Tax trap.
Born in New York City to British parents. Dual citizenship acquired by birthright (Jus Soli).
US IRS demands tax on the sale of his London home. Despite living in the UK his entire adult life.
Eventually pays the tax bill and publicly renounces citizenship.
"Jus Soli" (Birthright citizenship) is common in the Americas but rare elsewhere. This creates a massive tax dragnet for people who never lived, worked, or voted in the USA.
You are not alone. Here are the organizations fighting for the right to leave for tax purposes.
A political group campaigning for the rights of those born on US soil but raised abroad.
A diaspora blog and forum for "Covered Expatriates" and those facing FATCA/FBAR issues.
Pushing for Residency-Based Taxation (RBT) to replace the current Citizenship-Based Taxation (CBT).
Association des Américains Accidentels. Focused on EU legal challenges against FATCA.
*Determines "Covered Expatriate" status
Threshold for exit tax: $2M+