Figures from the US Treasury Department show that 3,514 US citizens renounced their citizenship in 2014; this is the highest figure to date.<\/p>\n
A recent University of Kent (at Brussels) study surveyed 1546 US citizens and former citizens (from 5 December 2014 to 20 January 2015) on this topic. Of the US citizen respondents, 31% have actively thought about renouncing US citizenship and 3% are in the process of doing so. The study shows that,\u00a0 in contrast to what is commonly thought, income is not a key factor in their doing so.<\/p>\n
Of those who have renounced or relinquished US citizenship (142 of the total respondents), nearly half (43%) have annual pre-tax household incomes of under $100,000 (USD). There is, similarly, very little difference in renunciation intention between those with lower incomes and those with higher incomes: of US citizen respondents with annual household incomes under $100,000 (USD), 28% are actively thinking of renouncing; of US citizen respondents with incomes above $250,000 (USD), 33% are actively thinking of doing so.<\/p>\n
The University of Kent study, led by Dr. Amanda Klekowski von Koppenfels, shows that many overseas Americans are feeling increasingly pressured by US financial reporting requirements and that maintaining US citizenship is costly \u2013 in terms of accountants\u2019 fees. One respondent noted: \u201cI can’t pay an accountant 2000\u20ac in order to pay the USA $0.00 in the end.\u201d Fear of \u201cdraconian\u201d FBAR (Report of Foreign Bank and Financial Accounts) penalties is also widespread, as this pensioner noted: \u201cAnnual income under $4,000; potential FBAR penalties $30,000 per annum for 3 small accounts!\u00a0 I am old and dependent on savings; one paperwork lateness could leave me facing starvation.\u201d<\/p>\n
Numerous respondents also noted severe difficulties in retaining or opening investment accounts, bank accounts and, in some cases, securing mortgages, as local banks increasingly refuse US customers \u2013 which negatively affects their ability to plan for retirement. Some 39% have lived abroad for over 20 years, and over two-thirds (67%) say they are unlikely to return to the US.<\/p>\n
All US citizens living outside of the US are required to comply with both taxation on global income and financial reporting requirements. Certain groups of US citizens and former US citizens feel particularly targeted, as a respondent in Canada explained: \u201cCanada is home to many border babies, born in the US because that was the location of the closest hospital, and \u2018accidentals\u2019 like myself who left the US as young children with no say in where they were born.\u201d<\/p>\n
This University of Kent survey \u2013 the first academic study of its kind, and the largest look at the attitudes of Americans living abroad on this topic to date \u2013 shows that income is not the key motivating factor in prompting renunciations, but that increasing reporting requirements, fears of \u201cdraconian\u201d penalties and increasing inability to hold a bank account are factors prompting renunciation.<\/p>\n
A longer summary of initial findings is available here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"