Americans who swap passports

[The Northerner]

At the US Embassy in London, there is a waiting list that none of the officials likes to discuss. On the list are Americans hoping to give up their citizenship, as they seek shelter from the Internal Revenue Service.

One lawyer fighting for her clients’ right to do so is Suzanne Reisman, a former civil rights campaigner, who is now a private-client lawyer in Mayfair, central London.

“You make a lot of sacrifices when you have to pay US taxes and live outside the country for a long time. But you also make a lot of sacrifices when you give up your passport,” she says.

Having lived in London since 1998, Ms Reisman herself has considered giving up her US passport. But she probably won’t. “I don’t think I want to die in the UK,” she says.

With many executives living away from their countries of origin, the reasons to change citizenship range from clarifying tax status, making it easier to cross borders, particularly in the case of passport holders from emerging markets who find themselves working in countries such as the US for a prolonged period of time, or discovering that over time their allegiances have changed.

While any individual will need to weigh the pros and cons of any change in status, both in terms of the hassle it can entail but also the long-term consequences, it also poses challenges for employers.

Read more: http://www.ft.com/cms/s/0/0ae8415c-9e5e-11df-a5a4-00144feab49a.html

[LiberalFighter]

1. Gee I wonder if the writer is misstating any of the facts?

In all probability the employee will be paying taxes either to the USA or the foreign company. Unless, the country is a third world or near third world type I'm thinking taxes will be higher in the foreign country. European countries mostly.

[depakid]

2. America is the only nation I know of that taxes its citizens living abroad

in other words, after a certain bracket allowance, Americans abroad pay taxes to BOTH countries, even though they only receive services in their country of residence.

Hence, people are making decisions about how much money their dual citizenship- or American passports are worth.