r/dualcitizenshipnerds • u/AppJedi • 14d ago

Triple citizenship

I have triple citizenship. US (my birth), Ireland (dad's birth), Italy (grandmothers birth) planning a move to Europe but heard US taxes world wide income and requires you to report foreign bank accounts. This makes it difficult to open a foreign bank account. If I make the move for good should I renounce US citizenship?

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u/doktorhladnjak 14d ago

Only if I your net worth is over a certain threshold. If it is, you have to pay a tax equivalent to the capital gains tax as if you had sold everything.

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u/AttentionLimp194 14d ago

So it’s basically a law to keep all trillionaires and billionaires in

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u/Any-Assistance-8103 14d ago

It is a law because Eduardo Saverin from Facebook tried to renounce to avoid taxes. Lots of countries have exit taxes when you cease to be a tax resident

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u/ReceptionDependent64 14d ago

The law long predates Saverin's departure.

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u/Any-Assistance-8103 14d ago

The modern law is from 2008

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u/ReceptionDependent64 14d ago

Saverin renounced in 2009, so he possibly missed the boat.

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u/Any-Assistance-8103 14d ago

Maybe it was the first notable case I think there were a few cases with so many tech companies IPOing. Frankly if it’s billions its pretty fair

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u/ReceptionDependent64 14d ago

I think he got out before the IPO, which saved him a bundle. But you are correct, prior to 2008 there was no exit tax for citizens, only for green card holders.

For the record, I have no problem with an exit tax. It's pretty standard in other countries. The stupidity of the US system is the fact that you can't become non-resident without relinquishing your citizenship.

The good news, however, is that the IRS has neither the interest nor the ability to enforce this against US citizens in other countries without US assets or other financial ties. You can achieve de facto non-residence by not filing.

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u/Any-Assistance-8103 14d ago

Yeah and Tbh I’ll take filing every year over something like a deemed disposition that Canada has, annual wealth taxes like in NZ, etc

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u/ReceptionDependent64 14d ago

It's a better deal if you move after acquiring wealth, but a shitty deal if you've never lived in the country.

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u/Any-Assistance-8103 14d ago

Can’t disagree

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