What do you think about the outcome of this survey? Do you agree with these 4,000 expats polled? PS: You can participate in the 2021 survey here: www.greenbacktaxservices.com/blog/annual-us-expat-survey/
Expat since 1991....UK, Europe, Africa, Middle East. We ( Americans Business Assn KSA) got close to getting citizen based tax repealed in early 2000s via annual door knock sessions in DC. Estimated Tax revenue then was $36billion. Regarding your question I agree with majority of expats. I’m married to a Brit and she had it much better, no tax return, reporting, zip. Thank you for your content... very helpful.
I am not US citizen, bit i agree. For my perspective citizenship taxation is weird. Also weird (for my opinion) how taxes distributed back in US, but this different topic. It is also strange that when buying shares of American companies if I do not confirm (fill in a special form) that I am not a US citizen , then I will have to pay taxes like an American.
@@chuckieinarabia you’re welcome! Yes I think it will take a very strong lobbying effort to repeal the tax policy. It seems the Trump administration didn’t consider it?
if you make a lot of money in a foreign country, you can get away not reporting it. make less than 100k usd abroad, you don't pay US taxes but best to report it in order to be able to update your US passport. if you make a lot of money in the US while living abroad, guess what, other countries like in Asia, do the same thing: you get taxed in that country where sourced.
@@wwlee5 do you know what your talking about? 1. Many countries have lower tax rate on salary than the u.s. 2. Many countries have lower tax rate on investment income than the u.s. 3. Most people earn a lot of money because they are not a salaried employee. which is what is taxed from the first penny. 4. Salaried jobs outside the u.s. are usually low paying.
@@jimsmith4658 no kidding Sherlock. I manage a factory outside US for a foreign company and get local salary. I close the books in accordance to local accounting standards and IFRS Care to teach me something I don't know? by the way, locals making salary get taxed low percentage wise and companies pay a lot (payroll tax), once you start making English teacher's pay, your tax rate is higher than a US state and federal tax combined.
@@wwlee5 Depends on the country you live in for tax rates (notice I said many). The more important point you did not touch which is people who have investment income (not salaried). I really don't care because I renounced a long time ago but I would like to help people being screwed by this unjust system.
So Kristin, I read that crypro-traders and some Hedge Fund managers have fled to Puerto Rico due to the fact that they can avoid the capital gains tax. Also, I think there are several other countries that have no capital gains tax that wealthy Americans have flocked to. I wish I knew the ins and outs of that loophole. I think as more and more corporations are okay with remote work, we might see a flood of millennials heading offshore to a more affordable and enjoyable place to live.
You cannot escape U.S. taxes by moving to another country. The only way is renounce. Or you'll just have to be satisfying with the Foreign Earned Income exclusion, and Foreign Housing Credits of upwards of ~$129,000 per year.
The 1960s-1980s woke Corporate nongovernment revenue. Corporations 40% of US revenue to 7%. And pay not rising in 46 years. I'm not subjugated to either party of plutocrats for tax incentives. No pensions, No savings rates. No fiat policy. Private equity communists. After hitting the US capital and major cities. Plutocrats can't run from ANTIFA today.
Generally speaking how is the global pandemic, and the rise now in variant cases impacting your nomad lifestyle? Are you hunkering down in a foreign country, or have you returned back to the US? Despite the US vaccinating at an amazing pace, I would think that many countries at this point have restrictions or outright bans on allowing Nomad workers in (Canada where I am already closing borders to that). Europe and Canada are struggling with India being ravaged by the new variant.
Hi Robert, I was visiting family in the US when the pandemic started so I stayed since then. More countries are embracing remote workers; you can learn more in this video! ruclips.net/video/FH_f7MBCh9Y/видео.html
We all want public services so we all have to pay for them through taxes. I hope you see it that way as well and don’t advocate the ludicrous idea of not having to pay tax because you are “international”. It is however true that you should only pay where you reside, not again where you are citizen of.
Our family is renouncing its US citizenship. We don't feel safe there and can't ever imagine returning. And come on, local politicians there couldn't care less what local constituents think or want. It's all about money. No citizen has a voice in that system.
I don't know how many people are in your family but you pay $2350.00 to renounce it. If your family is large, that is quite a lot of money. You would of course only renounce it if you had citizenship from the country where you live. If not, you would be stateless. I once thought of doing that but it is not worth the trouble. I don't plan to go back so I just ignore the U.S, which of course is hard to do.
@@runawaytechgal1467 There is nothing laughable about what she said. I used to work on Capitol Hill for a still sitting Democratic Senator and there is no way I can look past the "fortified" election results and the crap that is getting crammed down on us; 2 + 2 = 5, Men Can Get Pregnant, 72 genders, CRT, White Supremacy. It's pure lunacy and people are too afraid to stand up to it, many fear -- rightfully so -- that they will be fired from their jobs. I live in a famously wealthy liberal enclave and the people in this community have scared me with barely disguised authoritarian tendencies. There is no room for healthy skepticism or reasonable dissent. People that said the Crazy PC crap would never leave campus were wrong, it has taken over.
Wouldn't it be great if you could just swap your American passport for the passport of your choice with someone who wants to come to America? It looks like countries are going to have to compete for the best citizens and more freedom of movement between countries might be the new normal. Time will tell.
Yes, exchanging citizenship with some nationalities would men getting a much higher retirement pension. As it is, Americans who renounce have to pay almost $3000 just to apply and lose decades of payments into SS. As it is, the SSA will not send payments to many countries even though it is owned to the retiree.
@@stanspb763 your wrong about Social Security. if your vested when you renounce you will get your retirement and there are very few countries (i.e. north korea, cuba) where they will not send your social security money. Notice I said your money because you paid into the system so they cannot legally stop you from claiming your benefit.
I came to Argentina RIGHT BEFORE the pandemic hit. My family tried over and over to get me to come home, but my gut feeling was telling me not to. I am SO GLAD I stayed.
ARGENTINA!??? your crazy!!! one of the few countries where i would rather live under the jurisdiction of the u.s. The taxation in argentina is insane, (not to mention the inflation). Argentina makes the u.s. look like a libertarian government. Not to mention the lockdown in Argentina is worse than the u.s. You don't know what your talking about!!!! 2000 1 peso = 1 usd 2018 20 pesos= 1 usd 2019 100 pesos = 1 usd 2020 180 pesos = 1 usd so far in 2021 160 pesos = 1usd
@@jimsmith4658 Sure, if all you are looking at is MONEY....Argentina would be a nightmare. Lockdown is not as strict here in Córdoba as it is in Buenos Aires right now. Things are mostly back to normal besides the nightlife. The inflation is rough....always has been since the economic crash. The value in pesos you are quoting is the black market rate. I came over with USD and my boyfriend makes good money here. I am speaking about the differences I see in CULTURE. Yes, there is corruption...there is corruption just about everywhere. I like how relaxed it is here. I got so sick of having a capitalist lifestyle shoved down my throat every day.
@@TravelingwithKristin Yes! I came over on December 29th, 2019 and stayed through it all. I watched everything unfold in comparison from here and the US. We went into lockdown in March 2020. And stayed that way for MONTHS! It was rough...but things are slowly opening back up with restrictions in place. Masks and social distancing is still a must.
@@TravelingwithKristin No I am not still there but I am living in south america but the future is Asia. Latin America has many social problems which stem from the very high percentage of children born to single mothers. "Latin America is now the region that has the highest percentage of children born out of wedlock. In Colombia, 84 percent of all children are born to unmarried mothers. Argentina, Mexico, Chile and other countries throughout the region have similar numbers, with well over half of all children born outside wedlock" These percentages are similiar to the percentages found in the u.s. among the african american community
Abroad for eight plus years in retirement. U.S. is now recovering from Covid 19 and Trumpism. Still, I would never go back to the nation full of guns that starts endless wars and does not take care of it's own citizens regarding healthcare or well-being. It's now getting a little better.
Hi Miss Kristin I live in Munich centre. I am very happy to be in Munich. I am from the working class and Germany gave me the chance to move up at work, it gave me the chance for education in IT and gave me the chance to take on jobs that were really quite good. In German Aero space. At first I had a very low income and the dollar was , I think 4:1 to the DM, and we learned much less than in America, I did earn about 300$ a month. Which was not alot , but it was enough, for an appartment , food, and a three week vacation in Greece. smile. My family could not understand why I would live and work here for so little money... but I was happy. smile Coming from the working class , I learned German by myself ( Also I learned Thai, and Laotian, by myself) . May all living creatures be happy and free from suffering Regards Mr Michael Carmichael
There must be a story behind your choosing those languages. Turkish would come to mind first as a great language to learn there; Thai and Lao would be much harder to find. While the working class life there may be much better than stateside, it is generally difficult for a working class American to get the visas/ permits to make the transition. Would love to hear more about how you qualified.
Really interesting video Kristin, thanks for your hard work, it’s clear you have talked with a lot of people about these issues. I moved to France in 1992, became a French citizen in 2004, and renounced my US citizenship in 2011. The embassy fee for renouncing at that time was 450$, and the waiting list was three months long, thousands of people around the world were renouncing their citizenship during those years. Now the embassy fee has apparently been raised to over 2000$, am guessing as a dissuasive measure, which seems petty to me. The tax issues of course are quite complex, but indeed the US is almost the only country in the world exercising double taxation on its overseas citizens, taxation based on gross (not net) income, and based on US dollar numbers, so you have to convert your gross income to US dollar numbers using the current exchange rate. Back in 2008, 2009 timeframe, the exchange rate with the Euro caused Euro country residents to have to multiply their income by 1.5 or 1.6, and then pay US taxes on that virtual income when it exceeded the foreign earned income exclusion amount of 92k at the time (now about 105k I guess). To sum that up, it was prohibitively painful. I absolutely don’t miss the nightmare of IRS forms and incomprehensible instructions, which I labored through as I couldn’t afford to pay a specialist tax accountant. It was a sad and hard decision to make, to renounce my US citizenship, but those Civil War era tax laws are simply ridiculous. No other civilized country engages in double taxation like the US does. It’s abhorrent. There’s a bilateral tax treaty between France and the US with the specific treaty title of Treaty to Avoid Double Taxation ; but it took a Price Waterhouse tax expert to point out the small print in annex 40 or so where it says the US conducts itself as if the treaty does not exist. Which is mind boggling but true. Anyway, I’m able to return to the US as a tourist, and would never go back to live there, life in France is good. Best wishes...
Hi, I would submit to you that there is no need to go pay a fee to renounce your citizenship. Cut your passport into a few pieces. This will void the use of the passport for future use or copying. Write a letter stating that you are renouncing your citizenship. Sign the letter and have it notarized. Then put the cut up passport and the notarized letter into an envelope and send it by registered post to your nearest Embassy. A notarized letter still carries a lot of weight with the courts. Don't forget to keep a notarized copy of the letter and a receipt for the registered letter. Then again. I could be wrong. Peace
@@jmleaf8102 That’s interesting, but somehow I seriously doubt that method would stand up to the IRS. The embassy procedure for renunciation is a formal hearing in front of embassy staff where you raise your hand and swear ; resulting in an entry being made in the quarterly Federal Register.
@@owenphil Hi, I understand what you are writing about. The legal issue and such. My suggestion was about why should you even care about the U S Government and disincorporation. You are writing about a legal dance that they want you to go through. The question that you should ask yourself is why do you even care? Why must you "Officially" renounce your citizenship? You already are a citizen of another country. You don't live in the U S. You are not subject to the laws of the U S.. You are subject to the laws of the land in which you live. They are not goin to come and arrest you. You may be denied access to entry into the U S even though you "Legally" gave up your citizenship. How does the U S know if you enter the U S on a foreign passport? I really don't understand why you feel that you must officially do anything. What will happen if you just not do anything? You are a sovereign person. don't forget that. Peace
Yes! Please do a video on the topic of renouncing your US citizenship. 😄 SUPER interested in that topic. And also yes, definitely would also be interested in a video on Expat politics.
@@ttmarty82 "IF ANYONE WANTS TO RENOUNCE AMERICAN CITIZENSHIP.. PLEASE DO IT RIGHT AWAY, AS THE COUNTRY IS BEING SWARMED WITH NEW DEMOCRAT PAWNS. THIS REGIME IS AIDING AND ABETTING LAW BREAKERS. ILLEGAL ENTRY IS ILLEGAL. IMPEACH BIDEN. DUH" Have you'd tried posting with the CAPS LOCK lock off...or are you yelling at us purposely? I know that your yelling is not changing a lot of minds, just by scrolling thru the comments.
@@TravelingwithKristin I can't wait for that episode! As a nomad, I've considered renouncing mine, but the downsides as I see them include: 1) no Social Security checks when I'm old, 2) won't be able to vote in U.S. elections, 3) the fee to renounce, and 4) the hassel of obtaining citizenship in another country
I've lived abroad for 7 years and it's funny how little Americans who have not lived abroad understand about their own American citizenship. I get constantly asked by people back home what it is like "no longer being an American" or shocked that I can still vote since everyone assumed I gave up my citizenship? I am keeping mine and can't imagine ever giving it up because it's not something I can easily get back if I change my mind, and I'd like to pass it to children one day. Doing taxes sucks but it's not that bad, I don't make six figures so I've never had to pay much tax anyway.
If you have moved out of the US there are two big reasons to renounce - US citizenship based taxation and FATCA. The treaties do not cover everything so you can pay double taxes or taxes on disability, unemployment etc. FATCA is currently unbanking many accidental americans and many financial services are now not available to US citizens living in another country. Of course first you have to pay 2350 (worlds highest fee) to renounce. I know from personal experience if you're an average working class person with US citizenship in another country, you will eventually realise the only way to have a future is to renounce.
@@TravelingwithKristin if you want to do a zoom or skype chat with me (since I renounced) to put on one of your videos let me know and we can arrange it.
Having family in the US, renouncing isn't an option. The congress passed a law saying the anyone renouncing their citizenship can't get back in to the country. It was many years ago, I don't know if it still applies. Law or not, I'm sure that you would have a hard time at the border at any rate. Immigration agents have a wide latitude of discretion.
Posting as a former expat, a couple of subjects could have been dug into deeper based upon what state was your last of residence in the USA -- taxes & voting. In addition to federal taxes, different states tax their expatriate citizens at different rates, or not at all, for varying lengths of time after one leaves the country. As for voting, and depending upon whether or not one's last state of residence allows for expatriate voting, the impact of one's vote depends greatly upon how much your vote counts (the smaller the state population, the greater the impact of the vote, particularly in a federal election). If I was to become an expat again (something I strongly considered in 2020, and which is not out of the question now): I would do the following in regards to the two issues I mentioned: I would change the tax residency of my last US address to one with no state income tax, and one with a smaller population where my expatriate vote counts for more. For me, that state would be Nevada.
@@TravelingwithKristin I imagine that is for the taxes, as most of the other US states with no state income tax besides Texas have a smaller population / electorate than Florida -- thus the impact of one's expatriate vote counts for more in a federal election such as in Nevada or Wyoming, to name a couple.
One would think if that you don't have any source income in the United States, own no property in that state or country, why would need to pay them taxes?
I would suggest New Hampshire. Nevada is a huge state now whereas NH has no income tax either but a very small population. I am going to change my residence to NH in 2022. A sizable Libertarian base there as well.
As a US expat living abroad, I concur that paying taxes SUCKS. The paperwork alone is super complicated, not to mention also being taxed in the country we live. I won’t revoke my citizenship over it, but I wish there was another way. And yes, we vote in every federal election.
Yes; extremely complicated! That was one of the reasons mentioned in the survey. Definitely make your voice heard in the 2021 edition! It's out now (linked in pinned comment and description)
if all your money is sourced in the usa then don't pay tax in the country u r living in. I made 120,000 last yr living in a foreign country but paid only 2860 in taxes best to hire a tax expert
@@laundrybasket2689 I've been in Mexico for 9 months. I spent 1 month in Mexico City, 3 months in Puebla, 2 months back in Mexico City, and 3 months again in Puebla, which is where I am currently. Before coming to Mexico, I lived in Chile for nearly 2 years. Chile was almost the perfect place until the political unrest in October 2019. ... I pay $310 per month for a 3 bedroom, 2 bathroom, fully furnished house, in a gated community, with electricity, water, gas, internet, and weekly cleaning included. Deals like that just don't exist in the US.
@@kensantarelli2013 Understandable. I’m sure if I had the opportunity to live in Mexico City (instead of Zacatecas) I may have come away with a very different feeling about living in Mexico vs the US.
It's not the taxes per se. It is the reporting requirements (FATCA and annual tax filings despite the credit covering nearly all US taxes), plus it is a pain in the rear to open banking and security accounts, because few want to take on US citizens because the US pushes FATCA and SEC and CFTC oversight onto foreign financial institutions that take on US citizens.
Yes I talked about that a lot but I cut it from the edit because I wasn’t sure if people would be interested. Will take that feedback into consideration
It is too much of a hassle to keep track of taxes and paper work constantly to be a US citizen living abroad. Renouncing seems expensive but once it is done no more hassle and paperwork. Too daunting.
I lived abroad for about 10 years and returned to the US in 2001. There are many aspects of life in the US that I’m glad to have again, but without question my life was much, much more interesting living abroad. There are also lots of things about life in the US that are better elsewhere. I know that the US is the land of opportunity for millions of people around the world but it’s definitely a mistake to assume that America has the best lifestyle and standard of living. I will likely go live abroad again in the future.
Land of opportunity, which means it's a good place to make money. (or at least was before we decided to get politicians even more involved in central planning than they used to be.) I'm thankful to have been born there but I'd never want to live there again
Yes, it's a good country if you come from a 3rd world country. But I don't know many people from Western Europe who want to live in the USA except some highly skilled IT professionals.
Worth mentioning that you need to hit a threshold of around 100K USD annually to owe anything while abroad. I filed taxes each year while abroad through my accountant and he informed me that I didn't owe anything, which was great. I had to pay him a bit of money to file for me and send him all the financial docs that I had, but it wasn't awful. I was able to live a comfy lifestyle, save money, have a decent place, go out, and travel all within budget while living abroad. The cost of living is just lower, so my salary went much further.
Must be great given that you already found a good accountant. Besides the not -trivial amount paid to that accountant, it's worth also factoring in as costs the risk involved in trusting that accountant, and safely transmitting and storing all that sensitive information. It's all fine and dandy until something hits the fan.
If I'm leaving out of America I don't give a damn I'm not paying any taxes to America.. if you're American and you live outside of America I suggest don't pay them nothing don't tell them anything that's all..
Countries are becoming more and more linked through technology so this idea that you will hide and stay one step of the law is not very sound. There are legal ways to address this. Better to sleep at night. The people who try to cheat are always small-time petty types anyway. Avoid them at all costs.
@@sprezzatura8755 you're kind of right to know actually what you actually really mean one world system this is what's going on.. wait to do online currency and cybernet come online line could be a different ball game..
I would love to see a video about renouncing citizenship. I have no desire to ever go back to the U.S. to live and am planning to renounce my citizenship once I can get citizenship in the country I am planning to end up in. ❤️
@@hyperxalloyfpspelinappaimi8447 Planning to hopefully immigrate to Sweden within the next few years! Currently living and enjoying life in México right now though. 🥰❤️
My mother renounced her US citizenship. I think it is objectively true the T gov did a terrible job. My American family members who disagree are in their "bubble". It is not surprising that Americans living abroad (outside the bubble) are better informed.
Americans in the EU may be in the anti-Trump CNN bubble. Same with Australia & New Zealand. But Americans in several other countries (Eastern Europe, Israel, Northeast Asia?) are in somewhat pro-Trump bubbles. Neither bubble is actually objective or well-informed about everything. You need to get used to society being built on two totally independent realities, and learn to look beyond it.
I just learned about the ACA American Citizens Abroad and the Residence-Based Tax Coalition. There are groups fighting. The ACA has a write-in campaign on their website that let's you get in touch with your (formerly) local representatives. Oops, edit: see comments below
@@TravelingwithKristin agreed! U.S. politicians are very out of sight, out of mind when it comes to this stuff unless you're working for them and doing their bidding around the world!
@@amfla3787 always always always look behind the curtain [in america] dorothy - there's usually a corporate wizard [read: puppet master] at work pulling the strings [of the government it owns and controls]!
Can somebody explain why a U.S. Citizen living abroad has to file his or her foreign income to the I.R.S. These funds are not generated within the United States but in a foreign country, U.S. Citizens already pay their income tax in the country where they live. NOT ONE SINGLE US CITIZEN RESIDING ABROAD WANTS TO PAY DOUBLE TAX! Get a grip America!
70k!!!!! Congrats Kristin. You work so hard. Videos like this one are just one great example. Thanks always for your very well-researched/presented topics! :)
It’s true about some countries don’t allow US citizens to put money in their banks there depending which ones since it requires a lot of extra work on the part of the bank because they have to send a form to the United States IRS about all the American citizens that have an account there. Also. for example when I was an expat in a western European country, two banks would not accept me simply because I was a US citizen finally a third bank I was accepted.
@@SK-le1gm Not worth it. Better to sleep peaceably at night and not be looking over your shoulder, or have assets frozen. It's easier to plan for a renunciation than it is to plan for tax evasion :)
@@Timithos I’m just gonna ignore them. Never coming back. Ever. Love it here. Distraught about the USA and consider funding that government immoral. Will not fund that tyranny. Four years gone, ancient history. I’ll just say I died if they come at me somehow
Thanks for posting this video. Just 6-7 years ago, I was all "rah rah 'Murica!" Then I started living and traveling abroad. I experienced firsthand the simplicity of healthcare access in other countries, customer service in Japan, high minimum wage in Australia, Kiwi hospitality, Singapore's airport, German highways, etc. I've now come to realize that the USA is like a developing country with a Gucci belt, but with an oversized military, too many firearms (and I say this as a guy who has a Texas LTC), and rapidly declining civility and customer service (at least in Texas). Oh, and with an onerous tax and tax file system, as it pertains to Americans both at home and abroad. As an ex-Republican, that party's active voter suppression efforts make me fume. And, do NOT get me started on the USA's and many states' and people's responses to the pandemic. Our mass media are mostly sensationalistic slop (PBS/NPR, God bless 'em, do very well despite being chronically maligned and underfunded). We're even behind in implementing contactless payment methods that many Aussies and Europeans have already taken for granted for years. Even with all of this, I'm still grateful to be an American. But, I'm now torn between wanting to stay and fight for what I believe, or taking the Andrew Henderson (Nomad Capitalist) approach and just saying, "Screw it, I'm gone!"
You are welcome; so glad you liked it. The US is still a developing country in many ways. Interesting that you are an ex-Republican as well; I came across that in my research last year on expat voters. And yes - first we were behind on the chip cards and now contactless payments. Definitely some trade-offs in staying to help drive change versus living a peaceful life abroad. I'm trying to do both by staying involved no matter where I am. I don't think I'll ever renounce my citizenship
It's one thing to stay and help make America a better place if you can. We always say that to refugees who arrive from elsewhere - why couldn't you just stay in your country and make it better? But the same idea goes the other way too: The more people immigrate to other countries and build those countries up, the more nice countries there will be to live in in the world.
@@TravelingwithKristin I just googled it. Here is a hard answer to find, how many US Veterans Hospitals are in Foreign Countries. The VA says there are 72 total hospitals, 54 are on American soil.... so that leaves 18 in foreign countries. There are two in Mexico, South Korea, France, Germany, it is hard to find them all. There are even VA hospitals in South America
Interesting, if true, but it would still be an undercount. I have been living abroad for ten years, but my SS is paid to my US bank, so that number doesn't include me.
After drafting my tax return yesterday I estimate more than a third of my income, including my pension goes to taxes. After 2018 tax changes, I lost many deductions. As a retiree, I hoped to save up a small nest egg for end of life care while working another job.unfortunately our system keeps us living hand to mouth. I have another passport so giving up US citizenship is a serious consideration
About the Coronavirus, more Americans died in one year than all of WWII. The war was a great tragedy. Photos of my parents cousins who died in the war were prominently displayed and always haunted me in my youth. Here, photos of people who died in the war are still in every "ancestor worship cabinet." I am totally baffled by the American insensitivity to the loss of life. Japan is half the population of the US, but we have only 2% of the American deaths, yet it is a national tragedy and we are angry at the government for not being more competent. Of course the youth are careless like everywhere, and we have MAGA people, but in general, this is a time of trauma and suffering. People refusing to wear masks, on spring break in Florida, voting against relief for the poor--it's all incomprehensible, like looking at another species from a sci-fi movie. How can people endure so much loss of life and still want to go drinking and shop til you drop? Americans are friendly, but lack humanity, the ability to sense tragedy and deal with it in a human way. I remember gathering coins for Unesco and sending CARE packages to Europe, when I was a kid. What happened to compassion for suffering. It's just amazing that I am somehow still part of this group. Like going to sleep as a Christian and waking up in a Mad Max movie. It's incomprehensible to understand what has happened to Americans. Is it the 20 years of war; the 20,00 gun deaths/year? What turned a good-natured people into the hunger games? Have broad sections of the country become the Manson family. Helter Skelter.
One of the bigger reasons people think about renouncing citizenship is because of the limits on people living abroad being able to invest in stocks, etc. outside of the US. Very difficult to invest as an American in the UK and Europe because most countries don't want the tax reporting headaches with the US. Paying taxes is painful. Having to collect various income statements from any investments/properties you do have can be a nightmare as you sort what percentage to pay in more than one country.
The US does track citizens and green card holders abroad. If you've created a foreign bank account, you were reported from that country pursuant to the FATCA arrangement between that country and the US.
I'm an Independent, but it's funny that you say most Expats abroad want tax changes but they vote Democrat, when traditionally Democrats want more taxation for a larger government and larger government programs. Republicans are traditionally the ones who cut taxes, both for businesses and citizens, so it's a little comical to see that Expats use their votes in a way that reduces their chances of getting what they want. And regardless of Expat views on the value of the programs Bernie Sanders proposes, those programs all require tax revenue, while many of those programs will not actually be accessible while living abroad.
Most of the Americans I have encountered here in Norway who came as Republicans turned into Democrats or much further left within relatively short time. Living abroad simply exposes too many lies that the US Republican party tells its voters. It is really hard to hold onto those lies if you see counterpoints to them every day in the country you live in.
@Anya Harrison "And, why wouldn’t freedom loving Americans flee the USSA and the Demonrat persecution of real Americans?" Because absolutely EVERYTHING they complain about Democrats doing, is done to a larger measure in pretty much EVERY other country on the planet. There is nothing like the 2nd amendment in other countries which they love so much. They hate things like Universal health care which is a feature of pretty much every country outside the US.
@@55MLF If you haven't lived in Norway it is not the same. Just visiting frequently as a tourist doesn't teach you that much about society. To get a feel for how a society works, you need to live there. Deal with getting hired, experience taxes, go to hospital, take your kids to child care, commute. There are just a myriad of different things. I had plenty of time visiting the US before I lived there for a year. That was very different, and changed my view of America a lot.
@Traveling With Kristin As a former American expat who lived/worked in the People's Republic of China for 5 years & lived/studied abroad in France during my Junior undergraduate year, I find your videos to be #TopTier! and keep up the great work here on RUclips; I've also subscribed to your podcast, "Badass Digital Nomads" 👏🏻👏🏻👏🏻
When I left the USAF in Germany in 1980, I seriously thought about staying in Germany, either working for the military as an income till I got fluent in German and education and or job that I could support myself on the economy, I somewhat still wished I did. Known of others that have done it. I wouldn't renounce my citizenship but would get another. Right now getting close to retirement, and I'm OK, had a good life nevertheless, still did traveling. Renouncing to escape student debt to me is crazy, seeing they're going to snag you if you return and visit. And what european country where you can make a decent living is going to give you citizenship if you're like $100,000 more or less in debt, seeing banks are interconnected. I could see doing it if I became extremely wealthy, and even if so, going home could be an option if the defecation hits the fan. I do see ex-pats being discouncerned over this past January's assault on the Capitol building and violence. Am I patriotic to the US, yes, am I a rapid conservative no. More like a european type Social Democrat in beliefs. Watched several of your blogs liked them and subscribed today. As far as my favorite country but with a short visit was Croatia, but IN 1980 it was part of Yugoslavia. If I did relocate it would have been to Germany, The Netherlands or Belgium. No place is perfect. All have their problems. My only question is do you get credit for paying taxes to the country you are living abroad on your local taxes paid?
Good message Michael Paris -- so glad you're not about to spread hate on the USA as so many write on this thread. I'd like to live in another Country just for the experience but not for the hated of my home Country.. I must admit I do hate the Democrat Party, the dirty Dems are the reason I feel the USA is failing and will soon be destroyed or collapse...
Hi Michael, thank you for the comment and support. The tax topic is quite complex but I recommend watching this video interview for more answers; also with Greenback Tax Services who did the study I covered in the video! ruclips.net/video/bogAhFC7rB8/видео.html
@Michael Paris....I've known many US citizens who live outside the country, they have some debts, visited the US...and nothing happened. They're not going to put a person in jail about student debt...!!! Ridiculous...!!! When you gain citizenship in another country they don't give a dam about your debt in your home country. What they are concerned about is that you've followed the necessary rules and went through the proper channels to obtain citizenship in "their" country. For example, some countries require you to wait 10 years before you can apply, and /or you must be employed, haven't used welfare, etc. Each country is different. You certainly don't have a clue about obtaining citizenship in another country and being in the military in another country is very different from living their on your own...which is when you actually learn about the country in a more personal way.
@@feleciawallace8420 Well MAGA has now been declared to be a domestic terrorist organization after the events of 1/6/21, many of them are being hunted down to be prosecuted and/or being placed on 'do not fly' lists, so if you are one of them you will face a lot of problems. Also, with the new health pass/vaccination passport requirements being adopted by many countries anf private companies the MAGA people will be confined to their 'Murica and not allowed to go elsewhere.
I've noticed the comments asking for a video on renunciation of their USA passport. The questions tend to be more about the ability to visit the USA, retirement money, etc. However, there is another important aspect to consider is the cost of giving up the citizenship. There is the expensive administrative fee (2350USD if I remember correctly) as well as the IRS's "exit tax" which is very vague on how much you will be taxed based on current and projects wealth. I would suppose that giving up the passport takes some long term planning to minimize these costs and other risks.
The exit tax is triggered if you make over $165,000, have a net worth of over 2 million, or your taxes have not been filed properly for the last 5 years. Once you fill out special tax forms of renunciation, you have an exemption on the first $725,000. Anything over $725,000 you are taxed at the capital gains rate on ALL your assets regardless that investments are not being sold (real estate, stocks, etc.), so 15% long term capital gains (20% would be for short term capital gains). The Biden administration is unfolding a plan to raise the capital gains tax to the income tax bracket, so the highest would be 37% (The Democrats former proposal was to raise capital gains "only" to 30%). And they're raising the highest bracket from 37% to 39.6%, plus adding a Federal 3.8% Obamacare tax on top of the 39.6% for a total of 43.4% income tax AND capital gains tax. And every capital gain classification whether short or long wouldn't matter anymore because you'd be charged at this new rate for the exit tax. I would argue that the political power, media power, and cultural will against wealthier people is definitely there to make this happen. Example: Your income puts you in the highest tax bracket, and you have a net worth of 2.5 million (mostly say in real estate.) Upon renunciation the exit tax you would pay is $2.5M - $725,000, or $1.775M X 15% = $226,250 in exit taxes (Remember this is on top of your income taxes you have already paid). Under the Biden proposals you would pay $1.775M X 43.4% or $770,350 in exit taxes - money you may not have because it's tied up in say stocks you don't want to sell or your U.S. HOUSE! (This assumes the Biden administration does not mess with the $725,000 exemption.) If anyone is going to renounce, get out before you make over $165,000 per year, or have a net worth above $725,000, or the new tax system gets put in place.
USA citizens emigrating, becoming refugees.....................but let's just call them Expats, like Expat Syrians, Expat Afghan, Expat Venezuelan etc. et. Being a refugee is such a great leveller.
American Citizens Abroad is an advocacy group for expats, especially about the double taxation and political representation problem. They estimate that the expat community would be the 20th biggest state if we had political rights. I've lived abroad for 40 years. It used to be really easy to vote, but after 2000, it became extremely difficult. My ex-state is NJ, so it's not so bad, but trying to help register friends from swing states is almost impossible. Voter suppression in swing states is not only about racial minorities and youth but also expats, who are about 70% Democrats. Even in NJ, if I vote for anyone other than president/VP, then I have to pay state income tax. For earned income taxes, the exclusion is about $110,000, so if you earn less than that you don't have to pay taxes, but filing involves a lot of difficult forms that require paying a CPA to fill in. So, even if you don't owe taxes, you have to pay the CPA $500-600 to do these forms, so you kind of pay a tax even if you don't have to pay anything to the IRS.
Yes that is a great resource; thank you for sharing! Also check out this podcast for more about voting - such a compelling topic imo www.travelingwithkristin.com/digital-nomad-podcast/us-expat-vote
I’m a dual citizen of the US & Spain. My plan is to become a digital nomad, working for a US company while living in Spain, BUT I have no clue how to do this in a way that is tax-compliant. Tips anyone?
Both countries will be okay with you, if you fully and properly report and pay all taxes to both sides. That's the good news. But to figure out how to do that, you will probably have to hire accountants and lawyers on both sides. Or if you are that kind of digital nomad, BECOME the fully qualified accountant and lawyer in both countries yourself.
With regards to Covid? Gotta remember that yes the US has the highest infection rates globally. Followed by India. A country with nearly 4 times the population and a lesser infection rate. Yeah the US pooched their initial response(or lack there of) here in Canada? Ontario is a total trainwreck compared to anywhere. From their vaccine rollout, to their mitigation efforts, the near fascist state(I do NOT use that term loosely and without cause) that their premier just implemented is absolutely criminal, Doug Ford should be prosecuted. Canada as a whole is now handling this mess far worse than anybody globally. Going abroad once international travel is ok'd is my plan. I dont understand how the US can justify taxing expats though. You said the US is one of only 2 nations on earth who do this. 200+ sovereign states in the world... Yeah the US should change this law. Will it is the question...
1, If you emigrate from your homeland and immigrate to another then you are an immigrant, not an EXPAT...Whether you're from the US or the UK ... you don't call immigrants to the US or UK EXPAT either.
I’m 58, retired, and would prefer not to renounce US citizenship/Social Security. But I would really like a second passport just in case. Great topic. I feel bad for my kids that it’s come to this in the US. I don’t remember anyone even contemplating this 25 or 30 years ago.
@@TravelingwithKristin yes Kristin, that would be helpful. I agree with Richard's sentiments. This is definitely a strange and weird time, but I am of the opinion to always hedge my bets.
@@TravelingwithKristin Please do Kristin, that is becoming quite the hot topic in our household. Even though I can afford to buy real estate in other countries to take advantage of their golden or other investment based visa programs, i don't want to own foreign real estate. Would rather rent and be free / mobile. Can't wait to virtually hear what you have to share.
The citizenship thing is interresting. I feel it has to do with how long the expat been away from the US. In the US (and I base that on having lived in the States for about 4 years myself when I was younger) most people think that US is the only country that offers 'freedom' but when a US citizen have lived in Australia, Belgium, Japan or Germany for some time, they realise that they are just as 'free' in those countries, even if the political system might be a bit different.
Looking at that list of countries, what they offer is /affluence/, at least on par with what America offers. For anyone in the middle class or above, what might actually achieve the most /freedom/ is to live in any number of third world or developing countries. If that is your dream, the world is your oyster.
Thank you for the video :) Another interesting topic would be how FATCA hurts average Americans abroad as far as not being able to invest or even hold bank accounts. Thanks!
That question really opens a can of worms... One advantage of Bitcoin used to be as a workaround for this, but now the IRS is even demanding reporting of crypto currencies. Billionaires may be able to hire staffs of lawyers and accountants - including their own bought-and-paid-for employees in the IRS and Congress (and foreign equivalent) to handle their FATCA/ FBAR and other requirements. But when an ordinary American stays overseas, they are generally forced to depend on the cash economy, dodgy lodgings, gig work, and social connections, rather than bringing along what could have been a more than adequate safety net of resources from home. Despite the official public policy noise against human trafficking, one has to suspect that whoever makes US laws is secretly thinking it is kinda sexy to set things up to go wrong. Here's why: It can work out fine, if the American traveller/ expat is lucky. Or it can work out like a plot line from "Sound of Freedom". Maybe that is why the US cultural elites are giving such mixed reviews of that movie; it shines a negative light on a secret fetish of theirs.
Great video. I agree with all your points however I’m hopeful that FATCA will be eliminated for 3 reasons (a bit of of wishful thinking here) 1 - I think FATCA may collapse under its own weight. I’ve seen reports about databases not having the right info making it hard to enforce and the cost of keeping FATCA going vs the returns specially when the money could be spent on more important programs like healthcare and education, 2 - I believe countries will eventually get fed up with the cost burden of FATCA. 3 - If one person in another country (accidental American) is successful challenging FATCA , it could start a snowball effect. You should reach to NPR to see if they are willing to do a story on this.
Every year I end up with a sizable refund due to this. Considering I don't pay taxes to the US, and by tax treaty everything I pay to my adopted country counts, it's a money losing proposition on the US's end. It's also a personal win as my tax dollars do pay for the care of others, unlike how the US spends thier tax revenue.
Supposedly before Trump was elected he talked about doing away with FATCA/ FBAR. But nothing came of that. Think he should have another chance? The wording of FATCA is that you must report the highest US-dollar equivalent of an account's balance from any point in the year. But given that currencies fluctuate on a continuous basis, that is beyond impossible. Some foreign banks say they just report the account value as of Dec 31, as if that is good enough. The way it really works, a lot of banks get the slightest hint that a customer might have had a US green card or right to US citizenship and they immediately refuse to do any business with them. This leads to frantic foreigners showing up at US Embassies, "But I've never had any US ties! How can I renounce that!!" Aside from banks refusing to deal with people, it's not clear that other countries governments resent any added cost burden from FATCA/ FBAR. They may be fine with just criminalising and shipping out whatever random foreigners the US decides to claim.
@@AsusMemopad-us5lk I think President Trump made a lot promises that he did not keep. I think a Republican president is more likely to push to. eliminate FATCA than a Democrat. That said it comes down to priorities and americans abroad are not it. The real problem is not really FATCA ...it's the US extraterritorial taxation which a lot of legal scholars see as unconstitutional but someone has to challenge it. Another key point is that the IRS is not able to manage an extraterritorial tax system. No other country even tries (because it is impossible). The data protection agency of Belgium recently declared that FATCA violated Europe's GDPR laws and it is setup for more debate over there. FATCA requires reporting of all your bank accounts and investments regarding of the balance. I had to open bank accounts where I live and it was difficult...I had to complete a whole different set of forms that only apply to US citizens and it was somewhat humiliating. Lots of back and forth and delays which locals and people from other countries don't have to deal with. Accidental americans are hit hard by FATCA because they may not have an SSN which is hard to get if you don't live in the US. FIs are already tired of FATCA compliance costs but can't do anything if the local governments have agreements with the US to comply with FATCA. The US is the only nation that has the political, financial, and military muscle to impose its tax system on other nations. If say Portugal tried to do the same other countries would likely laugh a them.
@@TravelingwithKristin Yea yea otherwise it be the perfect country.. however for me,.. my wife is over there and the almost mandated vaccines scare the bejeezus outta of me to leave the US!...I need that sun and saw your vids on working remotely ..so that gave more confidence to head back sooner!
thank you for the info! I would love to see a video about how renouncing citizenship would affect social security payments for which I am eligible (in a few years :) )
Only those who have incomes substantially in excess of $100k US will have to pay any tax as the foreign earned income tax exclusion is $105k US. That comes right off the top. So the vast majority of people who retire in another country will not have to pay any tax, but yeah, you have to file, but really, that takes less than an hour, so it really isn't a big deal.
It just depends on how complex their taxes are, if they have anything to declare offshore, etc. And even with the FEIE there's still Social Security or self-employment to consider :/
@@TravelingwithKristin if its self employment in the foreign country it falls under the foreign income exemption. The max payout for SS is about $36k per year, so you can have an income of $120k per year (including SS) and pay no US tax (you'll need to pay tax in the country of residence of course but surrendering citizenship won't change that).
I'm curious to this . It's more I've always wanted to see places like norway and England. This desire has never been political to me. It's more for me and just I how feel and felt since my teens.
More US citizen would leave and give up their citizenship except for family in the US and work, simply put no overseas job no reason to relocate. Further the citizenship tax system keeps wealthy individuals and investors locked into the US, wanting the minimal advantage of US citizenship and finding every way possible to not pay taxes.
The people that voted for political parties to raise taxes and not hold people responsible for their own personal behavior are leaving the US. Oxymoron.
The Trump era was the most stressful time in my life. I was soooo close to moving abroad. Once COVID hit, I felt like I was living in a simulation. Then we had insane wildfire smoke here in Portland and I was like, yep, this is a simulation and I'm being psychologically tortured.
All expats living abroad become aware of Section 911 of the Internal Revenue Code and IRS form 2555. 911 provides an exemption on taxable income up to $107,600 (2020 filing year). Anything over this amount is taxed at the regular rate you would be paying in the States. I've worked nearly 20 years on/off, outside the States. This generous exemption is one of the reasons many people decide on an expat life. You can make great money tax free and live in a cheaper economy, learn how the other half live immersing in another culture. 911 is a strong incentive to travel, make and bank money and not get caught up in the overly expensive trappings of US life. Maybe you come back, maybe not.
I renounced my U.S. citizenship, but because I've refused to file an annual income tax, was refused! (I've lived "abroad" forty-four years.) I was told "You do not have that option," and "You are not eligible to renounce your citizenship." (Separately, among several countries that are safer, have free universal health care, humane and civil police relationships with the populace, and family- and community-based kindness, why would anyone choose the United States?)
@@TravelingwithKristin Hi, Kristin! Although the U.S. govt refuses my renunciation of citizenship, I'm ignoring them. (By keeping me as a citizen, they claim I owe yearly income tax!) As a citizen of Canada, life is great; the U.S. can't touch me. Kristin, my more than 45 years living abroad, not including Canada, lends some authority to my whole-hearted approval of your advice and opinions! I've been a translator and interpreter for the UN, USAID, CIA, and US, British, and Canadian embassies and consulates. Thanks for your energy: a big Latin hug, Douglas
@@TravelingwithKristin You bet I'm delighted with my decision, Kristin! I've been a Canadian citizen for many years. I live in Montréal but have traveled much of the country. Canada is a civilized country that genuinely cares for its people--in both senses. I have so many heart-warming anecdotes about the Canadian government and its people--very few about "Americans," none about its government. There are good, kind, warm people in the U.S.; they deserve better. The old saying is true: People deserve the government they choose. That's as true for the United States as it is for Argentina, another social and political disaster, led by corrupt, evil people. I wish there were some way I could chat directly with you. I'm on Whatsapp and TELEGRAM.
I have dual citizenship since with US/Irish(EU) from my dads birth in Ireland. If I had to choose I would choose the Irish/EU citizenship to keep. I'm not retiring in USA, off to Ireland.
if you worked over 10 years in the US and paid into Social Security, you may lose your 1000 bucks per month social security benefit when you hit your mid 60s. if you don't make a lot of money in any country, don't worry about dropping US citizenship.
@@timlinator If you had no income when you move to Ireland, as an Irish citizen you would be entitled to over 200 euro (240 US dollars) per week plus help toward housing costs and free medical care. So don't worry about that. It's a lovely place to live - once you get used to the weather.
No one's needs are being addressed by US politicians living domestically or overseas regardless of party, etc. Only the politicians and their cronies have their needs addressed by US government.
Somewhat true but unnecessarily negative... the American ethic of trying to sound positive about everything must be one of the reasons you left! 😃 If on the other hand you have actually found places that aren't like that, please share.
Hi, thanks for talking about this topic. After living in France for more than 10yrs, I wanted to cut my ties with the US. I renounced my American citizenship last year. For one, I no longer felt any strong ties with the US and mostly, it was because of the tax system. I don't make a huge amount but I still had to declare what I made and the money in my bank accounts to the IRS. For me, this is absurd. Living abroad while being an American causes some financial institutions to deny you as a client just because you have ties to the US. They don't want to have to pay penalities to the US and they don't want to fork up information to the IRS for American clients. It's understandable. Why bother with all that? Having a European passport allows me to travel as much as I want so there is no real loss there. If you guys are looking to do the same, I say go for it and don't look back. You'll need to save up for the very steep cost of renouncing. It will cost around $2,350 to renounce your citizenship with the extra hassle and cost to ensure you are up to date with any past taxes. If you have a home then you will have to pay taxes on it as if you were selling it on the day you renounce. That is one reason why many people choose not to go the extra mile. It's a hassle but there is always a bit of light at the end of the tunnel. Cheers !
Hello. I'm officially a United States citizen AND a Puerto Rican citizen and I live abroad. As per the case: Miriam J. Ramirez de Ferrer v. Juan Mari Brás (144 DPR 141, 1997) is there a loophole where I could NOT pay Federal Taxes since Puerto Rican citizenship does not grant you the right to vote in US elections? If you're interested in doing a video about that I'll be interested as well as for anyone that can get the Puerto Rico citizenship (which technically includes anyone that legally resides legally in PR for over a year). ¡Gracias!
i am actually renouncing my us citizenship tomorrow after having acquired a second citizenship. PM me if you are interested in discussing my experience going through it.
@traveling with Kristin Can you provide more info about how to RESIDE in a foreign country (Ex Pat ,I guess) and the countries that you can INDEFINITELY live there without becoming a citizen? Or is it considered a "permanent resident" and you keep your America citizenship? I want to understand the difference/benefits and drawbacks of "permanent resident" verses "dual citizenship " or renouncing American citizenship. I am a new subbie. Thank you❤
A great topic. I have lived outside the U.S. for more than thirty years and have never filed income tax. I got Portuguese nationality years ago and have no intention of returning to the U.S. With my Portuguese Citizens Card I can travel to 26 countries in the Schengen Zone with no questions asked. Why in God's name should I pay tax to the U.S. if I don't live there? The problem with renouncing U.S. citizenship is that it is very expensive ($2350.00) and you still have to file income tax for all those years in which you didn't file. It is a no-win situation. As for voting I did vote in the last election by email. Unfortunately, I am registered in California and my vote didn't accomplish much since Biden took California by a huge majority.
From what i heard, the problem with expat taxation is that foreign banks and financial institutions are reluctant to deal with Americans abroad because that would expose them to IRS rules regarding disclosure of their accounts to the US government. They prefer not to get tangled up in this particular web, so they politely waive off Americans and their money.
1) I'm loving you and this channel 100% 2) genuinely asking...I get the feeling you're comparing US vs.. the world and why US seems less favorable. Why would people want to come move here? My sister in law, who's wealthy and lives in France literally transplanted her 3 adult children to US because she knows they will have more opportunity here than in France. Would you have a different opinion if you actually lived long term, raised a family, created a business and feel the government side of the country and not just the 5-9 months novelty of a country? Thanks and keep up the channel!
Hi Linda, thanks for the support! Regarding your question, I think there are pros and cons to every country. No country is perfect. There's a lot of opportunity in the US but also room for improvement. I explain more in this video, in case you missed it? ruclips.net/video/DO5x_tJBn7w/видео.html
My parents left the U.S. when I was a child. I have never moved back and doing two sets of taxes is a pain. Would love to get your thoughts on renouncing.
![How I See the US After Living Abroad for 15 Years [CULTURE SHOCK]](http://i.ytimg.com/vi/DO5x_tJBn7w/mqdefault.jpg)
What do you think about the outcome of this survey? Do you agree with these 4,000 expats polled? PS: You can participate in the 2021 survey here: www.greenbacktaxservices.com/blog/annual-us-expat-survey/
Expat since 1991....UK, Europe, Africa, Middle East. We ( Americans Business Assn KSA) got close to getting citizen based tax repealed in early 2000s via annual door knock sessions in DC. Estimated Tax revenue then was $36billion. Regarding your question I agree with majority of expats. I’m married to a Brit and she had it much better, no tax return, reporting, zip. Thank you for your content... very helpful.
I am not US citizen, bit i agree. For my perspective citizenship taxation is weird. Also weird (for my opinion) how taxes distributed back in US, but this different topic. It is also strange that when buying shares of American companies if I do not confirm (fill in a special form) that I am not a US citizen , then I will have to pay taxes like an American.
I’d be curious of the survey if taken today.
@@chuckieinarabia you’re welcome! Yes I think it will take a very strong lobbying effort to repeal the tax policy. It seems the Trump administration didn’t consider it?
@@aidegrod very interesting!
Earning a lot of money while living abroad made me realize exactly what I was in the eyes of the U.S. Government: a Tax ID.
🙁
if you make a lot of money in a foreign country, you can get away not reporting it. make less than 100k usd abroad, you don't pay US taxes but best to report it in order to be able to update your US passport. if you make a lot of money in the US while living abroad, guess what, other countries like in Asia, do the same thing: you get taxed in that country where sourced.
@@wwlee5 do you know what your talking about?
1. Many countries have lower tax rate on salary than the u.s.
2. Many countries have lower tax rate on investment income than the u.s.
3. Most people earn a lot of money because they are not a salaried employee. which is what is taxed from the first penny.
4. Salaried jobs outside the u.s. are usually low paying.
@@jimsmith4658 no kidding Sherlock. I manage a factory outside US for a foreign company and get local salary. I close the books in accordance to local accounting standards and IFRS Care to teach me something I don't know? by the way, locals making salary get taxed low percentage wise and companies pay a lot (payroll tax), once you start making English teacher's pay, your tax rate is higher than a US state and federal tax combined.
@@wwlee5 Depends on the country you live in for tax rates (notice I said many). The more important point you did not touch which is people who have investment income (not salaried). I really don't care because I renounced a long time ago but I would like to help people being screwed by this unjust system.
So Kristin, I read that crypro-traders and some Hedge Fund managers have fled to Puerto Rico due to the fact that they can avoid the capital gains tax. Also, I think there are several other countries that have no capital gains tax that wealthy Americans have flocked to. I wish I knew the ins and outs of that loophole. I think as more and more corporations are okay with remote work, we might see a flood of millennials heading offshore to a more affordable and enjoyable place to live.
Yes I agree. Puerto Rico is an option but there are quite a few caveats. I prefer having more mobility
@entrepreneur - probably you can afford a new keyboard as it looks that yours has a problem with a stuck caps lock key. JFTR.
People in PR don't pay federal income tax either.
You cannot escape U.S. taxes by moving to another country. The only way is renounce. Or you'll just have to be satisfying with the Foreign Earned Income exclusion, and Foreign Housing Credits of upwards of ~$129,000 per year.
The 1960s-1980s woke Corporate nongovernment revenue. Corporations 40% of US revenue to 7%. And pay not rising in 46 years. I'm not subjugated to either party of plutocrats for tax incentives. No pensions, No savings rates. No fiat policy. Private equity communists. After hitting the US capital and major cities. Plutocrats can't run from ANTIFA today.
Generally speaking how is the global pandemic, and the rise now in variant cases impacting your nomad lifestyle? Are you hunkering down in a foreign country, or have you returned back to the US? Despite the US vaccinating at an amazing pace, I would think that many countries at this point have restrictions or outright bans on allowing Nomad workers in (Canada where I am already closing borders to that). Europe and Canada are struggling with India being ravaged by the new variant.
Hi Robert, I was visiting family in the US when the pandemic started so I stayed since then. More countries are embracing remote workers; you can learn more in this video! ruclips.net/video/FH_f7MBCh9Y/видео.html
ruclips.net/video/vg4aUqjH4N4/видео.html
You can make up to 107,000 overs4eaws before u pay tax in the usa
Yes they keep raising the FEIE with inflation each year
Is my usa pension going to be taxed in Ireland?
Thanks
It depends, Billy, I do not have all the information on each country but I do recommend checking out Greenback Tax Services
We all want public services so we all have to pay for them through taxes. I hope you see it that way as well and don’t advocate the ludicrous idea of not having to pay tax because you are “international”. It is however true that you should only pay where you reside, not again where you are citizen of.
Our family is renouncing its US citizenship. We don't feel safe there and can't ever imagine returning. And come on, local politicians there couldn't care less what local constituents think or want. It's all about money. No citizen has a voice in that system.
I suppose one could say that expats have "even less" influence than local constituents
I don't know how many people are in your family but you pay $2350.00 to renounce it. If your family is large, that is quite a lot of money. You would of course only renounce it if you had citizenship from the country where you live. If not, you would be stateless. I once thought of doing that but it is not worth the trouble. I don't plan to go back so I just ignore the U.S, which of course is hard to do.
When is the last time that you have been in the US? This is laughable.
I feel the same.
@@runawaytechgal1467 There is nothing laughable about what she said. I used to work on Capitol Hill for a still sitting Democratic Senator and there is no way I can look past the "fortified" election results and the crap that is getting crammed down on us; 2 + 2 = 5, Men Can Get Pregnant, 72 genders, CRT, White Supremacy. It's pure lunacy and people are too afraid to stand up to it, many fear -- rightfully so -- that they will be fired from their jobs. I live in a famously wealthy liberal enclave and the people in this community have scared me with barely disguised authoritarian tendencies. There is no room for healthy skepticism or reasonable dissent. People that said the Crazy PC crap would never leave campus were wrong, it has taken over.
I renounced 8 years ago. Best decision ever. No more IRS, no more BS, and more respect.
So Which passport did you settle for? I am expat with business in Saigon (HCMC).
Singapore, but I also have an Irish through my grandparents.
@@saigonexile531 we dont have capital gain tax. You can buy any property overseas and collect rent or flip for profit.
Exactly 🎯💯🖒✔
Wouldn't it be great if you could just swap your American passport for the passport of your choice with someone who wants to come to America? It looks like countries are going to have to compete for the best citizens and more freedom of movement between countries might be the new normal. Time will tell.
That would be pretty cool!
Yes, exchanging citizenship with some nationalities would men getting a much higher retirement pension. As it is, Americans who renounce have to pay almost $3000 just to apply and lose decades of payments into SS. As it is, the SSA will not send payments to many countries even though it is owned to the retiree.
@@stanspb763 it's anyone's guess if Social Security will be solvent when the time comes.
Easy ways to get around getting social security sent to you overseas.
@@stanspb763 your wrong about Social Security. if your vested when you renounce you will get your retirement and there are very few countries (i.e. north korea, cuba) where they will not send your social security money. Notice I said your money because you paid into the system so they cannot legally stop you from claiming your benefit.
I came to Argentina RIGHT BEFORE the pandemic hit. My family tried over and over to get me to come home, but my gut feeling was telling me not to. I am SO GLAD I stayed.
ARGENTINA!??? your crazy!!! one of the few countries where i would rather live under the jurisdiction of the u.s. The taxation in argentina is insane, (not to mention the inflation). Argentina makes the u.s. look like a libertarian government. Not to mention the lockdown in Argentina is worse than the u.s. You don't know what your talking about!!!!
2000 1 peso = 1 usd
2018 20 pesos= 1 usd
2019 100 pesos = 1 usd
2020 180 pesos = 1 usd
so far in 2021 160 pesos = 1usd
So interesting! And you're still there?
@@jimsmith4658 Sure, if all you are looking at is MONEY....Argentina would be a nightmare. Lockdown is not as strict here in Córdoba as it is in Buenos Aires right now. Things are mostly back to normal besides the nightlife. The inflation is rough....always has been since the economic crash. The value in pesos you are quoting is the black market rate. I came over with USD and my boyfriend makes good money here. I am speaking about the differences I see in CULTURE. Yes, there is corruption...there is corruption just about everywhere. I like how relaxed it is here. I got so sick of having a capitalist lifestyle shoved down my throat every day.
@@TravelingwithKristin Yes! I came over on December 29th, 2019 and stayed through it all. I watched everything unfold in comparison from here and the US. We went into lockdown in March 2020. And stayed that way for MONTHS! It was rough...but things are slowly opening back up with restrictions in place. Masks and social distancing is still a must.
@@TravelingwithKristin No I am not still there but I am living in south america but the future is Asia. Latin America has many social problems which stem from the very high percentage of children born to single mothers. "Latin America is now the region that has the highest percentage of children born out of wedlock. In Colombia, 84 percent of all children are born to unmarried mothers. Argentina, Mexico, Chile and other countries throughout the region have similar numbers, with well over half of all children born outside wedlock" These percentages are similiar to the percentages found in the u.s. among the african american community
Abroad for eight plus years in retirement. U.S. is now recovering from Covid 19 and Trumpism.
Still, I would never go back to the nation full of guns that starts endless wars and does not
take care of it's own citizens regarding healthcare or well-being. It's now getting a little better.
Thanks for sharing Crusty!
🎯💯✔🖒
Hi Miss Kristin
I live in Munich centre. I am very happy to be in Munich. I am from the working class and Germany gave me the chance to move up at work, it gave me the chance for education in IT
and gave me the chance to take on jobs that were really quite good. In German Aero space. At first I had a very low income and the dollar was , I think 4:1 to the DM, and we learned much less than in America, I did earn about 300$ a month. Which was not alot , but it was enough, for an appartment , food, and a three week vacation in Greece. smile. My family could not understand why I would
live and work here for so little money... but I was happy. smile
Coming from the working class , I learned German by myself ( Also I learned Thai, and Laotian, by myself) .
May all living creatures be happy and free from suffering
Regards
Mr Michael Carmichael
Thank you, Michael; great to hear from you!
Good on you sir, on your self education! As I’m a fan of the same, was there any software or program you used to learn those languages?
Europe is a better place for working class Americans who earn less than $100k/pa.
There must be a story behind your choosing those languages. Turkish would come to mind first as a great language to learn there; Thai and Lao would be much harder to find.
While the working class life there may be much better than stateside, it is generally difficult for a working class American to get the visas/ permits to make the transition. Would love to hear more about how you qualified.
Really interesting video Kristin, thanks for your hard work, it’s clear you have talked with a lot of people about these issues. I moved to France in 1992, became a French citizen in 2004, and renounced my US citizenship in 2011. The embassy fee for renouncing at that time was 450$, and the waiting list was three months long, thousands of people around the world were renouncing their citizenship during those years. Now the embassy fee has apparently been raised to over 2000$, am guessing as a dissuasive measure, which seems petty to me.
The tax issues of course are quite complex, but indeed the US is almost the only country in the world exercising double taxation on its overseas citizens, taxation based on gross (not net) income, and based on US dollar numbers, so you have to convert your gross income to US dollar numbers using the current exchange rate. Back in 2008, 2009 timeframe, the exchange rate with the Euro caused Euro country residents to have to multiply their income by 1.5 or 1.6, and then pay US taxes on that virtual income when it exceeded the foreign earned income exclusion amount of 92k at the time (now about 105k I guess). To sum that up, it was prohibitively painful. I absolutely don’t miss the nightmare of IRS forms and incomprehensible instructions, which I labored through as I couldn’t afford to pay a specialist tax accountant.
It was a sad and hard decision to make, to renounce my US citizenship, but those Civil War era tax laws are simply ridiculous. No other civilized country engages in double taxation like the US does. It’s abhorrent. There’s a bilateral tax treaty between France and the US with the specific treaty title of Treaty to Avoid Double Taxation ; but it took a Price Waterhouse tax expert to point out the small print in annex 40 or so where it says the US conducts itself as if the treaty does not exist. Which is mind boggling but true.
Anyway, I’m able to return to the US as a tourist, and would never go back to live there, life in France is good. Best wishes...
Thank you, Owen; really appreciate your feedback. Thank you for sharing your story about renunciation; very helpful! Where in France do you live?
@@TravelingwithKristin Out in the countryside not too far from Paris. Best of both worlds...
Hi,
I would submit to you that there is no need to go pay a fee to renounce your citizenship.
Cut your passport into a few pieces. This will void the use of the passport for future use or copying.
Write a letter stating that you are renouncing your citizenship.
Sign the letter and have it notarized.
Then put the cut up passport and the notarized letter into an envelope and send it by registered post to your nearest Embassy.
A notarized letter still carries a lot of weight with the courts. Don't forget to keep a notarized copy of the letter and a receipt for the registered letter.
Then again. I could be wrong.
Peace
@@jmleaf8102 That’s interesting, but somehow I seriously doubt that method would stand up to the IRS. The embassy procedure for renunciation is a formal hearing in front of embassy staff where you raise your hand and swear ; resulting in an entry being made in the quarterly Federal Register.
@@owenphil Hi,
I understand what you are writing about. The legal issue and such. My suggestion was about why should you even care about the U S Government and disincorporation.
You are writing about a legal dance that they want you to go through.
The question that you should ask yourself is why do you even care?
Why must you "Officially" renounce your citizenship?
You already are a citizen of another country.
You don't live in the U S.
You are not subject to the laws of the U S.. You are subject to the laws of the land in which you live.
They are not goin to come and arrest you.
You may be denied access to entry into the U S even though you "Legally" gave up your citizenship.
How does the U S know if you enter the U S on a foreign passport?
I really don't understand why you feel that you must officially do anything.
What will happen if you just not do anything?
You are a sovereign person. don't forget that.
Peace
As as Australian resident it is very interesting to hear the views of a well travelled American going back home.
Thank you! Glad you enjoyed it 😊
Yes! Please do a video on the topic of renouncing your US citizenship. 😄 SUPER interested in that topic. And also yes, definitely would also be interested in a video on Expat politics.
Thanks Rachel! Will do 😊
@@ttmarty82 "IF ANYONE WANTS TO RENOUNCE AMERICAN CITIZENSHIP.. PLEASE DO IT RIGHT AWAY, AS THE COUNTRY IS BEING SWARMED WITH NEW DEMOCRAT PAWNS. THIS REGIME IS AIDING AND ABETTING LAW BREAKERS. ILLEGAL ENTRY IS ILLEGAL. IMPEACH BIDEN. DUH" Have you'd tried posting with the CAPS LOCK lock off...or are you yelling at us purposely? I know that your yelling is not changing a lot of minds, just by scrolling thru the comments.
please do!! My husband and I are also considering it as he is applying for EU citizenship at the moment.
@@TravelingwithKristin I can't wait for that episode! As a nomad, I've considered renouncing mine, but the downsides as I see them include: 1) no Social Security checks when I'm old, 2) won't be able to vote in U.S. elections, 3) the fee to renounce, and 4) the hassel of obtaining citizenship in another country
@@ttmarty82 You're on the wrong side of history. Go down to Mar-a.Lago
I've lived abroad for 7 years and it's funny how little Americans who have not lived abroad understand about their own American citizenship. I get constantly asked by people back home what it is like "no longer being an American" or shocked that I can still vote since everyone assumed I gave up my citizenship? I am keeping mine and can't imagine ever giving it up because it's not something I can easily get back if I change my mind, and I'd like to pass it to children one day. Doing taxes sucks but it's not that bad, I don't make six figures so I've never had to pay much tax anyway.
I’m also keeping mine but understand why it might make sense for some people to renounce
How do you report your taxes when living abroad? Let's say I make less than 40,000 how do I report it since I won't have a W2 sent anywhere?
@@logicreply5577 i use turbotax and theres an option for reporting income without a w2. i think in the foreign tax exemption forms
@@kristina_lynn thank you so much ❤
Please do a pros and cons of renouncing citizenship video 😊
Will do!
Any American that doesn't consider renouncing isn't paying attention.
It's a tough decision; lots to consider
@@TravelingwithKristin only people with large cash reserves can renounce
No social security for regular Joe renouncing
If you have moved out of the US there are two big reasons to renounce - US citizenship based taxation and FATCA. The treaties do not cover everything so you can pay double taxes or taxes on disability, unemployment etc. FATCA is currently unbanking many accidental americans and many financial services are now not available to US citizens living in another country. Of course first you have to pay 2350 (worlds highest fee) to renounce. I know from personal experience if you're an average working class person with US citizenship in another country, you will eventually realise the only way to have a future is to renounce.
Renouncing American citizenship sounds like an interesting topic, would be interested to learn more. 👍
Noted; thanks Phil!
If you have investments, it can get very expensive
@@TravelingwithKristin if you want to do a zoom or skype chat with me (since I renounced) to put on one of your videos let me know and we can arrange it.
Having family in the US, renouncing isn't an option. The congress passed a law saying the anyone renouncing their citizenship can't get back in to the country. It was many years ago, I don't know if it still applies. Law or not, I'm sure that you would have a hard time at the border at any rate. Immigration agents have a wide latitude of discretion.
@@billwhitis9997 You can, but you will need a visa
Posting as a former expat, a couple of subjects could have been dug into deeper based upon what state was your last of residence in the USA -- taxes & voting. In addition to federal taxes, different states tax their expatriate citizens at different rates, or not at all, for varying lengths of time after one leaves the country. As for voting, and depending upon whether or not one's last state of residence allows for expatriate voting, the impact of one's vote depends greatly upon how much your vote counts (the smaller the state population, the greater the impact of the vote, particularly in a federal election). If I was to become an expat again (something I strongly considered in 2020, and which is not out of the question now): I would do the following in regards to the two issues I mentioned: I would change the tax residency of my last US address to one with no state income tax, and one with a smaller population where my expatriate vote counts for more. For me, that state would be Nevada.
I'm glad I was born in Florida for that reason! :)
@@TravelingwithKristin I imagine that is for the taxes, as most of the other US states with no state income tax besides Texas have a smaller population / electorate than Florida -- thus the impact of one's expatriate vote counts for more in a federal election such as in Nevada or Wyoming, to name a couple.
One would think if that you don't have any source income in the United States, own no property in that state or country, why would need to pay them taxes?
@@meribast What 'one would think' and what is US federal & state taxation is two entirely separate things.
I would suggest New Hampshire. Nevada is a huge state now whereas NH has no income tax either but a very small population. I am going to change my residence to NH in 2022. A sizable Libertarian base there as well.
As a US expat living abroad, I concur that paying taxes SUCKS. The paperwork alone is super complicated, not to mention also being taxed in the country we live. I won’t revoke my citizenship over it, but I wish there was another way. And yes, we vote in every federal election.
Yes; extremely complicated! That was one of the reasons mentioned in the survey. Definitely make your voice heard in the 2021 edition! It's out now (linked in pinned comment and description)
if all your money is sourced in the usa then don't pay tax in the country u r living in. I made 120,000 last yr living in a foreign country but paid only 2860 in taxes best to hire a tax expert
@@martinweber4740 income from foreign country, not USA.
So you make over 100,000 USD overseas or are you referring to your income made in the US but you live outside?
@entrepreneur so you don't qualify for foreign earned income exclusion? or you just never lived abroad for years? you just got made. sad.
Yes, I WILL renounce my citizenship as soon as I get my citizenship here in Mexico. That's a PROMISE!
Do you, Ken! 😄
You as well. 😁
Which part of Mexico do you live in? I lived in Zacatecas for less than a year and could not wait to get back to the USA.
@@laundrybasket2689 I've been in Mexico for 9 months. I spent 1 month in Mexico City, 3 months in Puebla, 2 months back in Mexico City, and 3 months again in Puebla, which is where I am currently. Before coming to Mexico, I lived in Chile for nearly 2 years. Chile was almost the perfect place until the political unrest in October 2019. ... I pay $310 per month for a 3 bedroom, 2 bathroom, fully furnished house, in a gated community, with electricity, water, gas, internet, and weekly cleaning included. Deals like that just don't exist in the US.
@@kensantarelli2013 Understandable. I’m sure if I had the opportunity to live in Mexico City (instead of Zacatecas) I may have come away with a very different feeling about living in Mexico vs the US.
It's not the taxes per se. It is the reporting requirements (FATCA and annual tax filings despite the credit covering nearly all US taxes), plus it is a pain in the rear to open banking and security accounts, because few want to take on US citizens because the US pushes FATCA and SEC and CFTC oversight onto foreign financial institutions that take on US citizens.
Yes I talked about that a lot but I cut it from the edit because I wasn’t sure if people would be interested. Will take that feedback into consideration
It is too much of a hassle to keep track of taxes and paper work constantly to be a US citizen living abroad. Renouncing seems expensive but once it is done no more hassle and paperwork. Too daunting.
And CRS - Common Reporting Standards
How can you tax a person that isn't there???? That's like owning a hotel and continuing to charge every guest that ever stayed there????
I lived abroad for about 10 years and returned to the US in 2001. There are many aspects of life in the US that I’m glad to have again, but without question my life was much, much more interesting living abroad. There are also lots of things about life in the US that are better elsewhere. I know that the US is the land of opportunity for millions of people around the world but it’s definitely a mistake to assume that America has the best lifestyle and standard of living. I will likely go live abroad again in the future.
Glad to hear that, Brian; did you see this video? ruclips.net/video/JmE3RuO3wOI/видео.html
Land of opportunity, which means it's a good place to make money. (or at least was before we decided to get politicians even more involved in central planning than they used to be.) I'm thankful to have been born there but I'd never want to live there again
Yes, it's a good country if you come from a 3rd world country. But I don't know many people from Western Europe who want to live in the USA except some highly skilled IT professionals.
@@willdegra317 no more opportunities in the USA
@@Blackadder75 exactly
Worth mentioning that you need to hit a threshold of around 100K USD annually to owe anything while abroad. I filed taxes each year while abroad through my accountant and he informed me that I didn't owe anything, which was great. I had to pay him a bit of money to file for me and send him all the financial docs that I had, but it wasn't awful. I was able to live a comfy lifestyle, save money, have a decent place, go out, and travel all within budget while living abroad. The cost of living is just lower, so my salary went much further.
Good to know, thanks for sharing your experience, Adam!
It’s around $120k now (FEIE)
Wrong, only applies to earned income
Must be great given that you already found a good accountant. Besides the not -trivial amount paid to that accountant, it's worth also factoring in as costs the risk involved in trusting that accountant, and safely transmitting and storing all that sensitive information. It's all fine and dandy until something hits the fan.
Yes Kristin please do a video on renouncing 🇺🇸 citizenship
Will do!
I agree with you 100%. I love the USA and I am grateful, but I need a good quality of life out of the rat race.
@Patricia Reyes -- I agree with your sentiment, I feel the same way... thanks
Relatable!
If I'm leaving out of America I don't give a damn I'm not paying any taxes to America.. if you're American and you live outside of America I suggest don't pay them nothing don't tell them anything that's all..
There are huge fines and penalties for that...
Countries are becoming more and more linked through technology so this idea that you will hide and stay one step of the law is not very sound. There are legal ways to address this. Better to sleep at night. The people who try to cheat are always small-time petty types anyway. Avoid them at all costs.
@@sprezzatura8755 you're kind of right to know actually what you actually really mean one world system this is what's going on.. wait to do online currency and cybernet come online line could be a different ball game..
I would love to see a video about renouncing citizenship. I have no desire to ever go back to the U.S. to live and am planning to renounce my citizenship once I can get citizenship in the country I am planning to end up in. ❤️
Nice me too. What country do you plan to move to?
Ok will do!
@@hyperxalloyfpspelinappaimi8447 Planning to hopefully immigrate to Sweden within the next few years! Currently living and enjoying life in México right now though. 🥰❤️
@@TravelingwithKristin I found out that my wife is a former porn actress. I swear I don't know what to do.
@@Ellary_Rosewood fint! jag hoppas att jag flyttar till norge snart! så jag kan prata norska och lite svenska.
My mother renounced her US citizenship. I think it is objectively true the T gov did a terrible job. My American family members who disagree are in their "bubble". It is not surprising that Americans living abroad (outside the bubble) are better informed.
You might find this podcast interesting: www.travelingwithkristin.com/digital-nomad-podcast/us-expat-vote
Exactly
Americans in the EU may be in the anti-Trump CNN bubble. Same with Australia & New Zealand. But Americans in several other countries (Eastern Europe, Israel, Northeast Asia?) are in somewhat pro-Trump bubbles. Neither bubble is actually objective or well-informed about everything. You need to get used to society being built on two totally independent realities, and learn to look beyond it.
It is my goal to move abroad and stay. 🌍🚚
Let me know any questions!
Thank you, I will. 😊🚚
I just learned about the ACA American Citizens Abroad and the Residence-Based Tax Coalition. There are groups fighting.
The ACA has a write-in campaign on their website that let's you get in touch with your (formerly) local representatives.
Oops, edit: see comments below
I’ve heard about that! Worth trying but still unlikely imho
@@TravelingwithKristin agreed! U.S. politicians are very out of sight, out of mind when it comes to this stuff unless you're working for them and doing their bidding around the world!
Someone has since let me know that the ACA is funded by tax preparation companies and sent me to look into SEATnow instead.
@@amfla3787 always always always look behind the curtain [in america] dorothy - there's usually a corporate wizard [read: puppet master] at work pulling the strings [of the government it owns and controls]!
Can somebody explain why a U.S. Citizen living abroad has to file his or her foreign income to the I.R.S. These funds are not generated within the United States but in a foreign country, U.S. Citizens already pay their income tax in the country where they live. NOT ONE SINGLE US CITIZEN RESIDING ABROAD WANTS TO PAY DOUBLE TAX! Get a grip America!
I have a two-part podcast about this coming out soon on www.BadassDigitalNomads.com
70k!!!!! Congrats Kristin. You work so hard. Videos like this one are just one great example.
Thanks always for your very well-researched/presented topics! :)
Thank you so much! I’m glad it shows 🙂
@@TravelingwithKristin Without a doubt! Excited for your next videos. ❤️
It’s true about some countries don’t allow US citizens to put money in their banks there depending which ones since it requires a lot of extra work on the part of the bank because they have to send a form to the United States IRS about all the American citizens that have an account there. Also.
for example when I was an expat in a western European country, two banks would not accept me simply because I was a US citizen finally a third bank I was accepted.
Total tax bill plus tax preparation costs for 2020 = $8,734. Sort of discourages one from wanting to make more money.
Understandable
What happens if you don’t pay them and never plan to return to the states? You might know
@@SK-le1gm Not worth it. Better to sleep peaceably at night and not be looking over your shoulder, or have assets frozen. It's easier to plan for a renunciation than it is to plan for tax evasion :)
@@Timithos I’m just gonna ignore them. Never coming back. Ever. Love it here. Distraught about the USA and consider funding that government immoral. Will not fund that tyranny. Four years gone, ancient history. I’ll just say I died if they come at me somehow
@@SK-le1gm So more lying. Not a way to live and we won't be acquaintances.
Thanks for posting this video. Just 6-7 years ago, I was all "rah rah 'Murica!" Then I started living and traveling abroad. I experienced firsthand the simplicity of healthcare access in other countries, customer service in Japan, high minimum wage in Australia, Kiwi hospitality, Singapore's airport, German highways, etc.
I've now come to realize that the USA is like a developing country with a Gucci belt, but with an oversized military, too many firearms (and I say this as a guy who has a Texas LTC), and rapidly declining civility and customer service (at least in Texas). Oh, and with an onerous tax and tax file system, as it pertains to Americans both at home and abroad.
As an ex-Republican, that party's active voter suppression efforts make me fume. And, do NOT get me started on the USA's and many states' and people's responses to the pandemic. Our mass media are mostly sensationalistic slop (PBS/NPR, God bless 'em, do very well despite being chronically maligned and underfunded). We're even behind in implementing contactless payment methods that many Aussies and Europeans have already taken for granted for years.
Even with all of this, I'm still grateful to be an American. But, I'm now torn between wanting to stay and fight for what I believe, or taking the Andrew Henderson (Nomad Capitalist) approach and just saying, "Screw it, I'm gone!"
You are welcome; so glad you liked it. The US is still a developing country in many ways. Interesting that you are an ex-Republican as well; I came across that in my research last year on expat voters.
And yes - first we were behind on the chip cards and now contactless payments.
Definitely some trade-offs in staying to help drive change versus living a peaceful life abroad. I'm trying to do both by staying involved no matter where I am. I don't think I'll ever renounce my citizenship
It's one thing to stay and help make America a better place if you can. We always say that to refugees who arrive from elsewhere - why couldn't you just stay in your country and make it better?
But the same idea goes the other way too: The more people immigrate to other countries and build those countries up, the more nice countries there will be to live in in the world.
9 million social security checks are transfered outside America
Do you have a source for that?
@@TravelingwithKristin I just googled it.
Here is a hard answer to find, how many US Veterans Hospitals are in Foreign Countries. The VA says there are 72 total hospitals, 54 are on American soil.... so that leaves 18 in foreign countries. There are two in Mexico, South Korea, France, Germany, it is hard to find them all. There are even VA hospitals in South America
I am not a veteran so that does not concern me.
Interesting, if true, but it would still be an undercount. I have been living abroad for ten years, but my SS is paid to my US bank, so that number doesn't include me.
@@haroldbridges515 The Federal Treasury is still routing it to your bank.
After drafting my tax return yesterday I estimate more than a third of my income, including my pension goes to taxes. After 2018 tax changes, I lost many deductions. As a retiree, I hoped to save up a small nest egg for end of life care while working another job.unfortunately our system keeps us living hand to mouth. I have another passport so giving up US citizenship is a serious consideration
Thanks for sharing your experience, Susan!
About the Coronavirus, more Americans died in one year than all of WWII. The war was a great tragedy. Photos of my parents cousins who died in the war were prominently displayed and always haunted me in my youth. Here, photos of people who died in the war are still in every "ancestor worship cabinet." I am totally baffled by the American insensitivity to the loss of life. Japan is half the population of the US, but we have only 2% of the American deaths, yet it is a national tragedy and we are angry at the government for not being more competent. Of course the youth are careless like everywhere, and we have MAGA people, but in general, this is a time of trauma and suffering. People refusing to wear masks, on spring break in Florida, voting against relief for the poor--it's all incomprehensible, like looking at another species from a sci-fi movie. How can people endure so much loss of life and still want to go drinking and shop til you drop? Americans are friendly, but lack humanity, the ability to sense tragedy and deal with it in a human way. I remember gathering coins for Unesco and sending CARE packages to Europe, when I was a kid. What happened to compassion for suffering. It's just amazing that I am somehow still part of this group. Like going to sleep as a Christian and waking up in a Mad Max movie. It's incomprehensible to understand what has happened to Americans. Is it the 20 years of war; the 20,00 gun deaths/year? What turned a good-natured people into the hunger games? Have broad sections of the country become the Manson family. Helter Skelter.
One of the bigger reasons people think about renouncing citizenship is because of the limits on people living abroad being able to invest in stocks, etc. outside of the US. Very difficult to invest as an American in the UK and Europe because most countries don't want the tax reporting headaches with the US. Paying taxes is painful. Having to collect various income statements from any investments/properties you do have can be a nightmare as you sort what percentage to pay in more than one country.
Exactly
The US does track citizens and green card holders abroad. If you've created a foreign bank account, you were reported from that country pursuant to the FATCA arrangement between that country and the US.
sounds like we need a change of terminology..... expats to successful escapees. lol
I'm an Independent, but it's funny that you say most Expats abroad want tax changes but they vote Democrat, when traditionally Democrats want more taxation for a larger government and larger government programs. Republicans are traditionally the ones who cut taxes, both for businesses and citizens, so it's a little comical to see that Expats use their votes in a way that reduces their chances of getting what they want. And regardless of Expat views on the value of the programs Bernie Sanders proposes, those programs all require tax revenue, while many of those programs will not actually be accessible while living abroad.
"Republicans abroad" sounds like an oxymoron
Most of the Americans I have encountered here in Norway who came as Republicans turned into Democrats or much further left within relatively short time. Living abroad simply exposes too many lies that the US Republican party tells its voters. It is really hard to hold onto those lies if you see counterpoints to them every day in the country you live in.
@Anya Harrison
"And, why wouldn’t freedom loving Americans flee the USSA and the Demonrat persecution of real Americans?"
Because absolutely EVERYTHING they complain about Democrats doing, is done to a larger measure in pretty much EVERY other country on the planet.
There is nothing like the 2nd amendment in other countries which they love so much.
They hate things like Universal health care which is a feature of pretty much every country outside the US.
Lived in Japan and spent a lot of time in Norway, I relate less to Democrats than Rep.
@@erikengheim1106 You don't see counterpoints in Norway. Love Norway, but it never changed my views.
@@55MLF If you haven't lived in Norway it is not the same. Just visiting frequently as a tourist doesn't teach you that much about society.
To get a feel for how a society works, you need to live there. Deal with getting hired, experience taxes, go to hospital, take your kids to child care, commute. There are just a myriad of different things.
I had plenty of time visiting the US before I lived there for a year. That was very different, and changed my view of America a lot.
6:50 lolol totally. Dems finds you no matter what. & #bernieOrBust
@Traveling With Kristin As a former American expat who lived/worked in the People's Republic of China for 5 years & lived/studied abroad in France during my Junior undergraduate year, I find your videos to be #TopTier! and keep up the great work here on RUclips; I've also subscribed to your podcast, "Badass Digital Nomads" 👏🏻👏🏻👏🏻
Thank you so much, Melissa! I'm so happy to hear that! Thanks for the support
America is a corporation not a country. That’s why folks wanna leave
Thanks for the video, and yes please make a video about the pros/cons of giving up US citizenship.
Will do!
American freedom. Lolx cant even run away from tax even abroad unless u earn very very little. 🤣
When I left the USAF in Germany in 1980, I seriously thought about staying in Germany, either working for the military as an income till I got fluent in German and education and or job that I could support myself on the economy, I somewhat still wished I did. Known of others that have done it. I wouldn't renounce my citizenship but would get another. Right now getting close to retirement, and I'm OK, had a good life nevertheless, still did traveling. Renouncing to escape student debt to me is crazy, seeing they're going to snag you if you return and visit. And what european country where you can make a decent living is going to give you citizenship if you're like $100,000 more or less in debt, seeing banks are interconnected. I could see doing it if I became extremely wealthy, and even if so, going home could be an option if the defecation hits the fan.
I do see ex-pats being discouncerned over this past January's assault on the Capitol building and violence. Am I patriotic to the US, yes, am I a rapid conservative no. More like a european type Social Democrat in beliefs. Watched several of your blogs liked them and subscribed today. As far as my favorite country but with a short visit was Croatia, but IN 1980 it was part of Yugoslavia. If I did relocate it would have been to Germany, The Netherlands or Belgium. No place is perfect. All have their problems.
My only question is do you get credit for paying taxes to the country you are living abroad on your local taxes paid?
Good message Michael Paris -- so glad you're not about to spread hate on the USA as so many write on this thread. I'd like to live in another Country just for the experience but not for the hated of my home Country.. I must admit I do hate the Democrat Party, the dirty Dems are the reason I feel the USA is failing and will soon be destroyed or collapse...
Hi Michael, thank you for the comment and support. The tax topic is quite complex but I recommend watching this video interview for more answers; also with Greenback Tax Services who did the study I covered in the video! ruclips.net/video/bogAhFC7rB8/видео.html
@Michael Paris....I've known many US citizens who live outside the country, they have some debts, visited the US...and nothing happened. They're not going to put a person in jail about student debt...!!! Ridiculous...!!! When you gain citizenship in another country they don't give a dam about your debt in your home country. What they are concerned about is that you've followed the necessary rules and went through the proper channels to obtain citizenship in "their" country. For example, some countries require you to wait 10 years before you can apply, and /or you must be employed, haven't used welfare, etc. Each country is different. You certainly don't have a clue about obtaining citizenship in another country and being in the military in another country is very different from living their on your own...which is when you actually learn about the country in a more personal way.
@@feleciawallace8420 Well MAGA has now been declared to be a domestic terrorist organization after the events of 1/6/21, many of them are being hunted down to be prosecuted and/or being placed on 'do not fly' lists, so if you are one of them you will face a lot of problems. Also, with the new health pass/vaccination passport requirements being adopted by many countries anf private companies the MAGA people will be confined to their 'Murica and not allowed to go elsewhere.
@@lazapololapolo9824 Thanks from saving me from having to write what you wrote
if u watch CNN yeah of course your gona think all the bad things
I've noticed the comments asking for a video on renunciation of their USA passport. The questions tend to be more about the ability to visit the USA, retirement money, etc. However, there is another important aspect to consider is the cost of giving up the citizenship. There is the expensive administrative fee (2350USD if I remember correctly) as well as the IRS's "exit tax" which is very vague on how much you will be taxed based on current and projects wealth. I would suppose that giving up the passport takes some long term planning to minimize these costs and other risks.
Good points; will discuss in the next video with pros and cons
The exit tax is triggered if you make over $165,000, have a net worth of over 2 million, or your taxes have not been filed properly for the last 5 years. Once you fill out special tax forms of renunciation, you have an exemption on the first $725,000. Anything over $725,000 you are taxed at the capital gains rate on ALL your assets regardless that investments are not being sold (real estate, stocks, etc.), so 15% long term capital gains (20% would be for short term capital gains). The Biden administration is unfolding a plan to raise the capital gains tax to the income tax bracket, so the highest would be 37% (The Democrats former proposal was to raise capital gains "only" to 30%). And they're raising the highest bracket from 37% to 39.6%, plus adding a Federal 3.8% Obamacare tax on top of the 39.6% for a total of 43.4% income tax AND capital gains tax. And every capital gain classification whether short or long wouldn't matter anymore because you'd be charged at this new rate for the exit tax. I would argue that the political power, media power, and cultural will against wealthier people is definitely there to make this happen.
Example: Your income puts you in the highest tax bracket, and you have a net worth of 2.5 million (mostly say in real estate.) Upon renunciation the exit tax you would pay is $2.5M - $725,000, or $1.775M X 15% = $226,250 in exit taxes (Remember this is on top of your income taxes you have already paid). Under the Biden proposals you would pay $1.775M X 43.4% or $770,350 in exit taxes - money you may not have because it's tied up in say stocks you don't want to sell or your U.S. HOUSE! (This assumes the Biden administration does not mess with the $725,000 exemption.)
If anyone is going to renounce, get out before you make over $165,000 per year, or have a net worth above $725,000, or the new tax system gets put in place.
USA citizens emigrating, becoming refugees.....................but let's just call them Expats, like Expat Syrians, Expat Afghan, Expat Venezuelan etc. et. Being a refugee is such a great leveller.
I have been donating to refugee organizations for more than ten years now; I feel so connected with their plight
WTF???????????? You have to pay taxes while living abroad?? 😳🤦♀️ Every day I'm more disgusted by Usa government and the whole system.
Yes
American Citizens Abroad is an advocacy group for expats, especially about the double taxation and political representation problem. They estimate that the expat community would be the 20th biggest state if we had political rights. I've lived abroad for 40 years. It used to be really easy to vote, but after 2000, it became extremely difficult. My ex-state is NJ, so it's not so bad, but trying to help register friends from swing states is almost impossible. Voter suppression in swing states is not only about racial minorities and youth but also expats, who are about 70% Democrats. Even in NJ, if I vote for anyone other than president/VP, then I have to pay state income tax. For earned income taxes, the exclusion is about $110,000, so if you earn less than that you don't have to pay taxes, but filing involves a lot of difficult forms that require paying a CPA to fill in. So, even if you don't owe taxes, you have to pay the CPA $500-600 to do these forms, so you kind of pay a tax even if you don't have to pay anything to the IRS.
Yes that is a great resource; thank you for sharing! Also check out this podcast for more about voting - such a compelling topic imo www.travelingwithkristin.com/digital-nomad-podcast/us-expat-vote
I’m a dual citizen of the US & Spain. My plan is to become a digital nomad, working for a US company while living in Spain, BUT I have no clue how to do this in a way that is tax-compliant. Tips anyone?
Both countries will be okay with you, if you fully and properly report and pay all taxes to both sides. That's the good news. But to figure out how to do that, you will probably have to hire accountants and lawyers on both sides. Or if you are that kind of digital nomad, BECOME the fully qualified accountant and lawyer in both countries yourself.
I wish there was some sort of international passport or UN passport. I don't see the need to claim a country.
Safety Wing wants to make a digital country online :)
With regards to Covid? Gotta remember that yes the US has the highest infection rates globally. Followed by India. A country with nearly 4 times the population and a lesser infection rate. Yeah the US pooched their initial response(or lack there of) here in Canada? Ontario is a total trainwreck compared to anywhere. From their vaccine rollout, to their mitigation efforts, the near fascist state(I do NOT use that term loosely and without cause) that their premier just implemented is absolutely criminal, Doug Ford should be prosecuted.
Canada as a whole is now handling this mess far worse than anybody globally. Going abroad once international travel is ok'd is my plan.
I dont understand how the US can justify taxing expats though. You said the US is one of only 2 nations on earth who do this. 200+ sovereign states in the world...
Yeah the US should change this law. Will it is the question...
Some laws and policies don’t seem to make sense, certainly
Very interesting! Would love to hear more.
More to come!
1, If you emigrate from your homeland and immigrate to another then you are an immigrant, not an EXPAT...Whether you're from the US or the UK ... you don't call immigrants to the US or UK EXPAT either.
Yes there’s a difference between immigration and temporary residency
I’m 58, retired, and would prefer not to renounce US citizenship/Social Security. But I would really like a second passport just in case.
Great topic. I feel bad for my kids that it’s come to this in the US. I don’t remember anyone even contemplating this 25 or 30 years ago.
Understandable. I can also do one on second citizenships or passports
@@TravelingwithKristin yes Kristin, that would be helpful. I agree with Richard's sentiments. This is definitely a strange and weird time, but I am of the opinion to always hedge my bets.
Just fyi, you can still collect SS even if you denounce US citizenship.
@@TravelingwithKristin Please do Kristin, that is becoming quite the hot topic in our household. Even though I can afford to buy real estate in other countries to take advantage of their golden or other investment based visa programs, i don't want to own foreign real estate. Would rather rent and be free / mobile. Can't wait to virtually hear what you have to share.
@@larrystclair1717 really?
When does “expat” become immigrant?
When you move permanently
@@TravelingwithKristin How long is permanent? If I stay for 20 years in a different country and then return was I an "expat" all that time?
The citizenship thing is interresting. I feel it has to do with how long the expat been away from the US. In the US (and I base that on having lived in the States for about 4 years myself when I was younger) most people think that US is the only country that offers 'freedom' but when a US citizen have lived in Australia, Belgium, Japan or Germany for some time, they realise that they are just as 'free' in those countries, even if the political system might be a bit different.
Good point Peter. Thanks for sharing your insights on the topic 😊🙏
Looking at that list of countries, what they offer is /affluence/, at least on par with what America offers. For anyone in the middle class or above, what might actually achieve the most /freedom/ is to live in any number of third world or developing countries. If that is your dream, the world is your oyster.
I prefer to stay and fight for my country. I'm sorry I'm too american to change. Have no interest in living any where else. Good luck.
That's great!
Thank you for the video :) Another interesting topic would be how FATCA hurts average Americans abroad as far as not being able to invest or even hold bank accounts. Thanks!
I have a podcast coming out about that soon! On BadassDigitalNomads.com
That question really opens a can of worms... One advantage of Bitcoin used to be as a workaround for this, but now the IRS is even demanding reporting of crypto currencies.
Billionaires may be able to hire staffs of lawyers and accountants - including their own bought-and-paid-for employees in the IRS and Congress (and foreign equivalent) to handle their FATCA/ FBAR and other requirements. But when an ordinary American stays overseas, they are generally forced to depend on the cash economy, dodgy lodgings, gig work, and social connections, rather than bringing along what could have been a more than adequate safety net of resources from home.
Despite the official public policy noise against human trafficking, one has to suspect that whoever makes US laws is secretly thinking it is kinda sexy to set things up to go wrong. Here's why: It can work out fine, if the American traveller/ expat is lucky. Or it can work out like a plot line from "Sound of Freedom". Maybe that is why the US cultural elites are giving such mixed reviews of that movie; it shines a negative light on a secret fetish of theirs.
Interesting but not surprising.
Glad you enjoyed
Like me, Do you also “follow” Nomad Capitalist”?
I’ve known Andrew for at least 7-8 years as we work in the same industry. We will likely collab on RUclips or a podcast at some point
@@TravelingwithKristin that’s awesome.
Also here from Nomad Capitalist.
Great video. I agree with all your points however I’m hopeful that FATCA will be eliminated for 3 reasons (a bit of of wishful thinking here)
1 - I think FATCA may collapse under its own weight. I’ve seen reports about databases not having the right info making it hard to enforce and the cost of keeping FATCA going vs the returns specially when the money could be spent on more important programs like healthcare and education,
2 - I believe countries will eventually get fed up with the cost burden of FATCA.
3 - If one person in another country (accidental American) is successful challenging FATCA , it could start a snowball effect.
You should reach to NPR to see if they are willing to do a story on this.
Every year I end up with a sizable refund due to this. Considering I don't pay taxes to the US, and by tax treaty everything I pay to my adopted country counts, it's a money losing proposition on the US's end. It's also a personal win as my tax dollars do pay for the care of others, unlike how the US spends thier tax revenue.
Supposedly before Trump was elected he talked about doing away with FATCA/ FBAR. But nothing came of that. Think he should have another chance?
The wording of FATCA is that you must report the highest US-dollar equivalent of an account's balance from any point in the year. But given that currencies fluctuate on a continuous basis, that is beyond impossible. Some foreign banks say they just report the account value as of Dec 31, as if that is good enough.
The way it really works, a lot of banks get the slightest hint that a customer might have had a US green card or right to US citizenship and they immediately refuse to do any business with them. This leads to frantic foreigners showing up at US Embassies, "But I've never had any US ties! How can I renounce that!!"
Aside from banks refusing to deal with people, it's not clear that other countries governments resent any added cost burden from FATCA/ FBAR. They may be fine with just criminalising and shipping out whatever random foreigners the US decides to claim.
@@AsusMemopad-us5lk I think President Trump made a lot promises that he did not keep. I think a Republican president is more likely to push to. eliminate FATCA than a Democrat. That said it comes down to priorities and americans abroad are not it. The real problem is not really FATCA ...it's the US extraterritorial taxation which a lot of legal scholars see as unconstitutional but someone has to challenge it. Another key point is that the IRS is not able to manage an extraterritorial tax system. No other country even tries (because it is impossible). The data protection agency of Belgium recently declared that FATCA violated Europe's GDPR laws and it is setup for more debate over there.
FATCA requires reporting of all your bank accounts and investments regarding of the balance. I had to open bank accounts where I live and it was difficult...I had to complete a whole different set of forms that only apply to US citizens and it was somewhat humiliating. Lots of back and forth and delays which locals and people from other countries don't have to deal with. Accidental americans are hit hard by FATCA because they may not have an SSN which is hard to get if you don't live in the US.
FIs are already tired of FATCA compliance costs but can't do anything if the local governments have agreements with the US to comply with FATCA.
The US is the only nation that has the political, financial, and military muscle to impose its tax system on other nations. If say Portugal tried to do the same other countries would likely laugh a them.
I renaunced my citizenship in 1977, I am now free from Washington
Wow! Where do you live now?
Nice. You renounced the year I was born. I renounced last year and now I'm free. I feel liberated. 🤗
@@chorton53 good job. what was the reason you renounced? how did you get a second passport?
Learn how to spell.
Do the video on renounce
Ok Eddy 😊
No no I felt super SAFE AND FREE >IN #SOS NICARAGUA... only thing was the political problems from the goverment...
I used to live there and felt safe except in Managua during the elections
@@TravelingwithKristin Yea yea otherwise it be the perfect country.. however for me,.. my wife is over there and the almost mandated vaccines scare the bejeezus outta of me to leave the US!...I need that sun and saw your vids on working remotely ..so that gave more confidence to head back sooner!
thank you for the info! I would love to see a video about how renouncing citizenship would affect social security payments for which I am eligible (in a few years :) )
Noted! Thanks Taki
Me also!
@@TravelingwithKristin , and me!
Oh, that's a big one indeed. Are former citizens eligible for earned pension for the years worked in the US?
@entrepreneur Jesus.. God help you get what you deserve
I sure do love being tax cattle for a tribe that hates me! 🤣
Great content, USA is definitely " pay for play"
Thanks Jaime!
Only those who have incomes substantially in excess of $100k US will have to pay any tax as the foreign earned income tax exclusion is $105k US. That comes right off the top. So the vast majority of people who retire in another country will not have to pay any tax, but yeah, you have to file, but really, that takes less than an hour, so it really isn't a big deal.
It just depends on how complex their taxes are, if they have anything to declare offshore, etc. And even with the FEIE there's still Social Security or self-employment to consider :/
@@TravelingwithKristin if its self employment in the foreign country it falls under the foreign income exemption. The max payout for SS is about $36k per year, so you can have an income of $120k per year (including SS) and pay no US tax (you'll need to pay tax in the country of residence of course but surrendering citizenship won't change that).
I'm curious to this . It's more I've always wanted to see places like norway and England. This desire has never been political to me. It's more for me and just I how feel and felt since my teens.
Sure let me know any questions you have about travel!
More US citizen would leave and give up their citizenship except for family in the US and work, simply put no overseas job no reason to relocate. Further the citizenship tax system keeps wealthy individuals and investors locked into the US, wanting the minimal advantage of US citizenship and finding every way possible to not pay taxes.
I imagine if Americans could change their tax domicile without renouncing their citizenship, many people would do that
The people that voted for political parties to raise taxes and not hold people responsible for their own personal behavior are leaving the US. Oxymoron.
your obstructionist Party dont do shit, except say NUH HUH
The Trump era was the most stressful time in my life. I was soooo close to moving abroad. Once COVID hit, I felt like I was living in a simulation. Then we had insane wildfire smoke here in Portland and I was like, yep, this is a simulation and I'm being psychologically tortured.
So sorry to hear about that Clay. Hope you and your family are safe.
Good to hear good English
Thank you
All expats living abroad become aware of Section 911 of the Internal Revenue Code and IRS form 2555. 911 provides an exemption on taxable income up to $107,600 (2020 filing year). Anything over this amount is taxed at the regular rate you would be paying in the States. I've worked nearly 20 years on/off, outside the States. This generous exemption is one of the reasons many people decide on an expat life. You can make great money tax free and live in a cheaper economy, learn how the other half live immersing in another culture. 911 is a strong incentive to travel, make and bank money and not get caught up in the overly expensive trappings of US life. Maybe you come back, maybe not.
I have a two-part podcast coming out about US taxes abroad very soon
I'm super interested in renouncing. At the moment I plan to do it in 2023/24 when I get UK citizenship, but I'd liek to know the pros and cons!
Noted, Stephanie!
It will be too late by then, plus the UK is a total fascist police state because of the flu.
Aren't UK taxes higher? Or, do you have other reasons for renouncing?
Check out Andrew Henderson's Nomad Capitalist RUclips videos. Great information there.
@@sprezzatura8755 Yes! He's got a lot of info on citizenship.
I renounced my U.S. citizenship, but because I've refused to file an annual income tax, was refused! (I've lived "abroad" forty-four years.) I was told "You do not have that option," and "You are not eligible to renounce your citizenship." (Separately, among several countries that are safer, have free universal health care, humane and civil police relationships with the populace, and family- and community-based kindness, why would anyone choose the United States?)
Hi Douglas, thanks for coming to the live stream yesterday! Didn't realize you renounced as well, but seems like you are satisfied with your decision!
@@TravelingwithKristin Hi, Kristin! Although the U.S. govt refuses my renunciation of citizenship, I'm ignoring them. (By keeping me as a citizen, they claim I owe yearly income tax!) As a citizen of Canada, life is great; the U.S. can't touch me. Kristin, my more than 45 years living abroad, not including Canada, lends some authority to my whole-hearted approval of your advice and opinions! I've been a translator and interpreter for the UN, USAID, CIA, and US, British, and Canadian embassies and consulates. Thanks for your energy: a big Latin hug, Douglas
@@TravelingwithKristin You bet I'm delighted with my decision, Kristin! I've been a Canadian citizen for many years. I live in Montréal but have traveled much of the country. Canada is a civilized country that genuinely cares for its people--in both senses. I have so many heart-warming anecdotes about the Canadian government and its people--very few about "Americans," none about its government. There are good, kind, warm people in the U.S.; they deserve better. The old saying is true: People deserve the government they choose. That's as true for the United States as it is for Argentina, another social and political disaster, led by corrupt, evil people. I wish there were some way I could chat directly with you. I'm on Whatsapp and TELEGRAM.
I have dual citizenship since with US/Irish(EU) from my dads birth in Ireland. If I had to choose I would choose the Irish/EU citizenship to keep. I'm not retiring in USA, off to Ireland.
if you worked over 10 years in the US and paid into Social Security, you may lose your 1000 bucks per month social security benefit when you hit your mid 60s. if you don't make a lot of money in any country, don't worry about dropping US citizenship.
@@wwlee5 I'm not dependent on social security and don't think it will be around anyway.
I would love to have dual citizenship in Ireland
@@TravelingwithKristin I hit the citizenship lottery. Born in USA, dad born in Ireland, maternal grandma born in Italy so citizen of all three.
@@timlinator If you had no income when you move to Ireland, as an Irish citizen you would be entitled to over 200 euro (240 US dollars) per week plus help toward housing costs and free medical care. So don't worry about that. It's a lovely place to live - once you get used to the weather.
No one's needs are being addressed by US politicians living domestically or overseas regardless of party, etc. Only the politicians and their cronies have their needs addressed by US government.
Somewhat true but unnecessarily negative... the American ethic of trying to sound positive about everything must be one of the reasons you left! 😃 If on the other hand you have actually found places that aren't like that, please share.
Hi, thanks for talking about this topic. After living in France for more than 10yrs, I wanted to cut my ties with the US.
I renounced my American citizenship last year. For one, I no longer felt any strong ties with the US and mostly, it was because of the tax system. I don't make a huge amount but I still had to declare what I made and the money in my bank accounts to the IRS. For me, this is absurd.
Living abroad while being an American causes some financial institutions to deny you as a client just because you have ties to the US. They don't want to have to pay penalities to the US and they don't want to fork up information to the IRS for American clients. It's understandable. Why bother with all that? Having a European passport allows me to travel as much as I want so there is no real loss there. If you guys are looking to do the same, I say go for it and don't look back. You'll need to save up for the very steep cost of renouncing. It will cost around $2,350 to renounce your citizenship with the extra hassle and cost to ensure you are up to date with any past taxes. If you have a home then you will have to pay taxes on it as if you were selling it on the day you renounce.
That is one reason why many people choose not to go the extra mile. It's a hassle but there is always a bit of light at the end of the tunnel. Cheers !
Thank you for sharing about your experience! Very helpful to others. I will do another video about this :)
@@TravelingwithKristin Well, don't you have make sure you have an alternate bridge before you burn the bridge, rather than end up a stateless person.
@chorton53 I want to renounce this fall. I'd like to hear how the process went for you. Can we get in touch?
Hello. I'm officially a United States citizen AND a Puerto Rican citizen and I live abroad. As per the case: Miriam J. Ramirez de Ferrer v. Juan Mari Brás (144 DPR 141, 1997) is there a loophole where I could NOT pay Federal Taxes since Puerto Rican citizenship does not grant you the right to vote in US elections? If you're interested in doing a video about that I'll be interested as well as for anyone that can get the Puerto Rico citizenship (which technically includes anyone that legally resides legally in PR for over a year). ¡Gracias!
i am actually renouncing my us citizenship tomorrow after having acquired a second citizenship. PM me if you are interested in discussing my experience going through it.
Thanks Erika! Can you send an email to hello at travelingwithkristin.com?
I want to know ONE thing!? What embassy took your appointment!!?
@@Timithos i traveled to Mérida Mexico. Yucatan state has not had it that bad with covid and the US Consulate there has been operating normally.
@traveling with Kristin Can you provide more info about how to RESIDE in a foreign country (Ex Pat ,I guess) and the countries that you can INDEFINITELY live there without becoming a citizen? Or is it considered a "permanent resident" and you keep your America citizenship?
I want to understand the difference/benefits and drawbacks of "permanent resident" verses "dual citizenship " or renouncing American citizenship.
I am a new subbie. Thank you❤
A great topic. I have lived outside the U.S. for more than thirty years and have never filed income tax. I got Portuguese nationality years ago and have no intention of returning to the U.S. With my Portuguese Citizens Card I can travel to 26 countries in the Schengen Zone with no questions asked. Why in God's name should I pay tax to the U.S. if I don't live there? The problem with renouncing U.S. citizenship is that it is very expensive ($2350.00) and you still have to file income tax for all those years in which you didn't file. It is a no-win situation. As for voting I did vote in the last election by email. Unfortunately, I am registered in California and my vote didn't accomplish much since Biden took California by a huge majority.
Thanks Ray; glad you were able to get Portuguese citizenship! I voted absentee in most elections, too. I think it's important either way!
Well, any U.S. citizen should have been filing. There should be no, "all those years you didn't file."
From what i heard, the problem with expat taxation is that foreign banks and financial institutions are reluctant to deal with Americans abroad because that would expose them to IRS rules regarding disclosure of their accounts to the US government. They prefer not to get tangled up in this particular web, so they politely waive off Americans and their money.
They're not even polite about it.
Great video! Very interesting. I agree, living abroad and paying taxes stinks!
Thanks Doug!
1) I'm loving you and this channel 100%
2) genuinely asking...I get the feeling you're comparing US vs.. the world and why US seems less favorable. Why would people want to come move here? My sister in law, who's wealthy and lives in France literally transplanted her 3 adult children to US because she knows they will have more opportunity here than in France. Would you have a different opinion if you actually lived long term, raised a family, created a business and feel the government side of the country and not just the 5-9 months novelty of a country? Thanks and keep up the channel!
Hi Linda, thanks for the support! Regarding your question, I think there are pros and cons to every country. No country is perfect. There's a lot of opportunity in the US but also room for improvement. I explain more in this video, in case you missed it? ruclips.net/video/DO5x_tJBn7w/видео.html
I'd love the video on renouncing please
Here's the video: ruclips.net/video/iDfygAUT5qQ/видео.html
Immigrants, not expats
It depends how long they are moving for - temporary or permanently
My parents left the U.S. when I was a child. I have never moved back and doing two sets of taxes is a pain. Would love to get your thoughts on renouncing.
Yes that is a pain! Ok will put thought to that