Denunciation of American citizenship becomes 5 times more expensive

04.09.2014

US State Department announced about changed governmental fee, which should be paid for denunciation of American citizenship.

Thus, from September, 12 of 2014 the fee will be 2 350 USD. Today, person, who wants to denounce its USA citizenship, shall pay 450 USD.

Amongst the reasons of the fee increase stated its too low size from the beginning, that did not cover ¼ of the governmental costs, seriousness of the decision about citizenship denunciation, the volume of work performed by consular stuff abroad since 2012.

It is worth mentioning, that almost all governmental fee concerning citizenship or obtaining USA visas were changed.

Source: http://travel.state.gov/content/passports/english/go/feechange.html

Expert’s opinion

Tenacious paws of the motherland are not so easy to let go. If paying taxes in the United States is becoming prohibitive, than even for renunciation of citizenship, and of course, of the tax residence – you shall pay!

Apparently, the flow of migration across the border the United States begins to change its direction. Not the poorest taxpayers are leaving.

Where are they going? To places, where taxes are not so high and where it is still possible to pay tax on a territorial basis.

Such places are Hong Kong, Singapore, Cyprus, some European jurisdictions, and of course - all offshore jurisdictions.

Yaroslav Lomakin ( Managing Partner, Honest&Bright)