Leaving the United States Permanently: Your Step-by-Step Guide

Plenty of people talk about it, but only the rare few take action. And with good reason. Leaving the United States permanently is a life-changing decision that can either be hugely beneficial or problematic. To be successful, you need to make a plan.  

In this article, we break down this complex topic, exploring what leaving the US behind means in practical terms and why you need to start preparing now.

We’ll walk you through the process to renounce US citizenship, including details of how the US exit tax works, before explaining what happens after renouncing.

You will also find extensive details on the best expat destinations for Americans, the different ways you can obtain second citizenship and what you need to prepare for your new life overseas.

By the end of this article, you will gain a deeper understanding of what your new life overseas will entail, and you will fully grasp the practical implications of leaving the United States permanently.

You will also be forced to confront what that means emotionally, because understanding your true motivations will help ensure your new home best matches your personal values.

Leaving The US Permanently: Executive Summary

• Land of Missed Opportunity: More than half of US citizens say they are struggling financially.
• Brain Drain: After half a century, immigration is reversing. Fewer people are coming in, while more and more top US talent is moving overseas.
• Poor Choices: Left to their own devices, most Americans unwittingly chose to live in high-tax countries because they don’t get the right advice.
• IRS Stress: Leaving the United States permanently does not necessarily mean the end of US taxes – so once again, getting the right advice is crucial.
• Overemotional: Too many expats make wrong decisions based on feelings instead of facts. Successful ones do their research first.  
• Start Planning Now: There’s a world of opportunities out there for the taking, but moving overseas takes time, and citizenship programmes are closing fast.

So if you’re a US citizen looking to build a better future for you and your loved ones, don’t hesitate. Get ahead of the pack right now and contact Millionaire Migrant to discuss your options.

Why Americans Choose to Leave the United States

For millions of people worldwide, America once stood as a symbol of opportunity and freedom, but this is no longer the case.

As of this year, immigration to the US is in decline, reversing a half-century of growth.

America once attracted the world’s top talent, in science, medicine, technology and other key sectors, but now the best and brightest are looking elsewhere, while American talent, likewise, is beginning to move overseas.

Why?

The easy answer is to blame politics. But the more accurate answer is a lack of opportunity.

Political polarisation is merely a symptom of a fading American dream. And, with the majority of citizens struggling to attain financial security, the cause remains the same – “it’s the economy, stupid.”

68% of Americans now feel as though they are just about getting by. The same number also believes that home ownership is “no longer attainable.”

This is according to a recent Harris poll of Americans who have chosen to start new lives overseas.

Young people, in particular, no longer believe in the American dream and are migrating to Europe to countries with lower living costs and improved work/life balance.

This tracks with what our clients are saying, who cite high taxes and an overall high cost of living, coupled with deteriorating services and an economic climate of ever-decreasing value.

It’s common to hear them say, “I don’t care who’s in charge anymore”, because either way, their needs are not being met.

There’s also an increasing sense that, instead of being allowed to shape their own destiny, they’re being taken for a ride – that “the land of the free is no longer free”.

America once had a reputation as a bastion of free speech, but this is no longer the case. Meanwhile, political polarisation continues to rise.

Crime and safety concerns are rising too, especially among minorities and seniors.

And finally, there’s the thorny topic of healthcare, a perennial issue for all Americans, regardless of their political affiliations.

But whatever your past affiliations might have been, now is the time to start asking yourself tough questions, like:

• Do I consider myself to be truly American?
• Do I believe in “American values”?
• Does the US still uphold those values?
• Is “American” my identity, or merely my current nationality?

If your goal is to “escape the US” like it’s Dodge City, you need to reframe it.

Know exactly why you’re leaving, list the reasons and be brutally honest with yourself.

Accept that you can’t run from your problems, only confront them.

Understand that the problems you’re looking to escape exist elsewhere, so you’ll need to research your new prospective homes extensively.

Don’t become just another statistic, one of the alarming number of Americans moving overseas without a plan, only to move back when things don’t quite work out. 

If leaving the United States permanently truly is your goal, you need to do so from a position of strength.

And the first step is taking control of your finances. 

Tax Implications and Financial Freedom

Now here’s the biggest pitfall for American expats that you need to understand:

Leaving the United States permanently does not necessarily mean you’re leaving the US tax system.

That’s because America is the only developed nation in the world to tax its citizens regardless of their country of residence.

The only permanent solution is to give up your US citizenship, which, for most people, means renunciation.

This is a big step, however, and requires careful planning throughout the entire process.

Most importantly, however, you need to understand that:

Renunciation of American citizenship affects all future dealings with the US, including your ability to travel to visit family and/or conduct business on US soil.

That’s why we advise all US persons to contact us to discuss their options first and avoid unforeseen problems later on.

Quality of Life Considerations

How “American” do you want it?

Because if you’re worried about missing home, you can get a taste of it on every street corner, pretty much wherever you go.

Ok, so maybe not every single fast food franchise, but with so much delicious fresh food out there, is that such a bad thing?

Better food and a healthier lifestyle, this is just the beginning. Better healthcare, education, cleaner streets, less crime, all of the things you’re looking for are out there.

The grass truly is greener on the other side – if you plan correctly.

What’s worth remembering, however, is that, while low-tax options also exist, most English-speaking countries, the big ones at least, have high taxes.

Unfortunately, left to their own devices, Americans tend to favour high-tax countries like Canada, the UK and France. Which leads us to our next point, language.

Hollywood has tricked most Americans into thinking that English fluency is far higher than it is. So, if you are considering a non-English-speaking country, start learning the local language now.

Learning the lingo makes it easier both in business and in your day-to-day life. And if you plan on becoming a citizen through naturalisation, it’s essential.

Even if you’re in a country that’s fluent in English, you’ll find that having a degree of fluency gets you more respect, especially when dealing with local officials or during business negotiations.

Political and Social Factors

So let’s finally address the elephant in the room. And the donkey in the room.

And the entire menagerie of partisan politics currently causing the room to stink.

It’s not that these grievances don’t exist elsewhere (they do), however, few countries are as polarised as the US feels right now.

Foreign perception of the US is also in a state of flux, because other nations don’t know what the rules are anymore, and that’s bad for business.

Leaving the United States permanently means leaving behind this notion of red states versus blue states in favour of a new, multipolar world of ambitious nation-states, each vying for your capital and talent.

America is currently suffering a massive brain drain. As we speak, a mass exodus of talented people, from scientists and academics to entrepreneurs and investors, is already ahead of you in the queue.

The more you procrastinate, the worse it’s going to get. So contact Millionaire Migrant and start working on your escape plan today.

Legal Requirements for Leaving the US Permanently

Before leaving the United States permanently, you will need to make sure you have wrapped up all your business in the US first.

You will need to divest yourself of any assets or business operations you have in the US before paying off all your outstanding debts and taxes, because the only way this works is if you start with a clean slate.

While doing this, you also need to start compiling all the relevant documentation for your new home country. This can be a bureaucratic cluster headache or an absolute breeze, depending on where you’re going. (Which is why we recommend you speak with us first.)

Three important things to consider when choosing your new country:

1: Is this country amenable to Americans gaining citizenship?

2: Will said citizenship will allow you easy access to the US to visit family and friends?

3: How will my new nationality be perceived? Does this new country have a good international standing?

Finally, it’s vital you understand that, by renouncing, you irrevocably give up all your rights as a US citizen. This includes your evacuation and embassy privileges.

This means if things go south and you need to leave the country in a hurry, or if you get into legal trouble and need assistance, Uncle Sam’s no longer there to protect you or bail you out.  

Expatriation Process Overview

Traditionally, Americans renounced their citizenship as a form of protest, rather than for any practical reasons.

While once a rare phenomenon, in the post-FATCA world, the number of people renouncing American citizenship continues to grow.

By renouncing American citizenship, you fully extricate yourself from the US tax system and all IRS reporting requirements. This, in turn, makes it easier to open bank accounts abroad.

The decision to renounce US citizenship should not be made lightly. Instead, you should research your options carefully to make sure you understand the process.

Step 1: Secure Your Second Citizenship

Before you can renounce, you will need to obtain a second citizenship.

There are many ways you can do this, including citizenship by investment and citizenship by descent. We will be covering these and other options next, before looking at some recommended destinations.

To discuss your options and get the most up-to-the-minute advice on citizenship programmes, contact Millionaire Migrant today.

Step 2: Get Your House In Order

Before deciding to renounce U.S. citizenship, you will need to put all your American affairs in order first, because you won’t have the same opportunity to change things later.

This includes everything from accounting and estate planning, not to mention any US-based assets, properties or business operations, along with the general logistics of moving your life overseas.

You also want to get all your tax filings done, as it plays a part in determining whether you pay the exit tax.

And if you miss out on something, you likely won’t get a do-over, so it’s crucial you get it right the first time.

Sounds daunting? It doesn’t have to be. Avoid stress and ensure a friction-free transition, contact Millionaire Migrant to discover how.

Step 3. Renouncing Your US Citizenship

With a shiny new passport in your back pocket and all your American loose ends tied up, it’s time for the final step.

To apply to renounce your US citizenship, select the most convenient US embassy/consulate and make an appointment.

The initial interview is to determine your motivations and whether you understand the ramifications of renouncing.  

You also need to complete the DS-4080 form and pay the $2,350 renunciation fee.

Once all this has been processed, you are then called back to make your renunciation official. Finally, you hand over your American passport, and that’s it – you are no longer a US citizen.

For sure, you will feel a lot of conflicting emotions at this point, which is natural. If you feel overwhelmed, just repeat the following mantra, “No more IRS!”

Tax Compliance and Exit Tax

In addition to the $2,350 renunciation fee, you may be eligible to pay the US exit tax if, on the day you renounce US citizenship, you meet the following criteria:

(A) You have a net worth of $2 million or more.

(B) Your average income tax for the preceding five years exceeds the allotted value. ($206,000 is the 2025 value.)

(C) You fail to satisfy IRS filing obligations in the five years before renunciation.

How Is The US Exit Tax Rate Calculated?

The US exit tax targets unrealised capital gains on all assets held on the day you renounce.

In other words, the IRS determines the value of your portfolio and taxes it as long-term capital gains at rates of up to 20%.

Luckily, there are exceptions and, with careful pre-planning, you can employ legal methods to reduce this burden further.

Contact Millionaire Migrant and we’ll show you how.

Social Security and Medicare Considerations

Worried about Social Security and Medicare?

Don’t be.

America may be a superpower in many respects, but its healthcare is the laughing stock of the world. As for the insurance companies, let’s not go there.

Even nations once snidely dismissed as “third world” have superior healthcare compared to the US, where high medical expenses are still one of the key causes of bankruptcy.

Meanwhile, nations in Europe and elsewhere provide quality healthcare as a universal right for all citizens. Free care, we should mention, that often puts paid US care to shame.

Of course, you can still opt to remain fully private if you so wish and take advantage of shorter waiting times and broader coverage.

In either case, your coverage won’t depend on your exact location since, unlike the US, most countries regulate insurance at the national level.

Second Passport Options for US Citizens

Leaving the United States permanently requires you to relinquish your current American passport, so you will need to secure a second one in advance. (Many of our clients own several.)

While your second citizenship options depend on your circumstances and will vary from country to country, the most common paths are through marriage, ancestry, naturalisation or via the investment route.

Marriage-Based Options

We’ve all heard of people marrying for a Green Card, but does it work the other way round?

It’s a bit of a cliché, but in the majority of countries, the answer is still, yes.

On your travels, you’ll soon discover that many nationalities still view Americans as exciting and exotic, and will therefore consider you a catch.

We’re not advising you to go this route, however, just letting you know it’s an option.

On the other hand, if you’re lucky enough to have found a love so strong you’re willing to move overseas and start a new life with that person, we salute you and wish you happiness.

And if you need help with anything along the way, get in touch and let us know.

Naturalisation Through Ancestry

Next, let’s talk about naturalisation through ancestry and citizenship by descent.

There’s a subtle difference between the two, but the upshot is still the same, you obtain citizenship by leveraging your ancestral ties to the country.

For the majority of US citizens, this means European ancestry, such as German, Scandinavian, British, Irish, Italian, Polish or Greek.

Having an ancestral connection does not necessarily mean you are eligible for a passport, however. Some countries are far more strict than others, so, as always, proper research is key.

In addition to researching the country and its program, you will need to research your family tree and provide proof of your connection to the country.

Depending on the programme in question, you may decide it’s not worth the effort.

Then again, it may well prove to be the best decision you ever made.

If you’re unsure whether or not you are eligible and would like to explore your options, contact Millionaire Migrant today. 

Citizenship by Investment Programs

Citizenship by investment provides the clearest and most straightforward path to obtaining a second passport.

Most programmes provide a range of investment options, each with its own pros and cons.

Generally, the cheapest option is the donation option – essentially paying the government a lump sum.

Beyond the value of the passport itself, however, this method precludes additional returns on your investment, which is why we generally recommend going the real estate investment or company formation route instead.

Be warned, however, not all application processes are equal, and the tiny details matter.

That’s why we recommend you get expert advice first before deciding on the wrong path.

Residency by Investment Routes

The next step down from citizenship by investment is residency by investment.

As its name suggests, you don’t attain citizenship or gain a passport, however, you are granted a long-term residency permit allowing you to live, work and do business in the country.

Having obtained your residency, and with it the legal right to reside long-term in your chosen country, you may then have the option to obtain citizenship through naturalisation.

On the other hand, some countries simply do not naturalise foreigners regardless of how long they have resided there legally.

Such an arrangement may be sufficient for many investors, however, as the tax benefits of residency far outweigh the effort required to seek second citizenship elsewhere.

A perfect example of this is the UAE, which offers residency by investment with no path to citizenship, though on the flipside, there’s 0% income tax and no capital gains.

Top Destinations for American Expats

According to a recent Harris poll, 86% of American expats move abroad in search of a more affordable cost of living. But there’s a problem.

Left to their own devices, Americans tend to move to countries with high taxes.

Canada is the most obvious choice for most, and its reputation for cleaner streets, lower crime and better healthcare is well earned. But if your main goal is to escape high taxes, you might as well stay put.

Further afield, we have Australia and New Zealand. Strange accents, yes, but still no language barrier. But again, we have high taxes and plenty of immigration hurdles.

Another popular expat destination is Japan, which always surprises us. Sure, you get a top-tier passport if you can stick it out, but even if you can get through the gruelling naturalisation process, your reward is a lifetime of high taxes.

The other mistake American expats make is assuming that leaving the US permanently means leaving behind the issues which caused so much stress in the first place.

Case in point, the UK, where a cost of living crisis, a shortage of affordable housing and a lack of opportunity for young people, combined with concerns about immigration, is fuelling the fires of political polarisation. 

Sound familiar?

And yet, according to the UK Home Office, the number of Americans seeking UK citizenship continues to rise, while more and more British citizens are migrating elsewhere.

It’s easy to blame Brexit. But, much like with US politics, that’s a case of blaming the symptom, not the cause.

The fundamentals of the UK economy have been shaky for some time, and they’re only getting worse.

“Britain is slowly going bust”, claims a recent headline in The Economist, while recent government policy changes have promoted a mass exodus of wealthy individuals.

Young people, too, are leaving, much for the same reasons our founder, Jeremy, did, because they believe they can build a better future for themselves abroad.

Others remain stuck in a rut, with over 5 million British adults still living with their parents because they cannot afford to leave.

And, as if all of this doesn’t sound dystopian enough, the current government seem unconcerned, preferring instead to pursue Orwellian policies like their baffling internet safety laws and mandatory ID cards.

So if you’re an American, especially a libertarian one who values freedom above all else, it’s fair to say you won’t find much to love about nanny-state Britain.

Ole Blighty is nothing if not resilient, however. History has proven this time and again.

The UK will bounce back eventually, of that we’re certain, but until then, the transition will be painful, which is why we advise you to look elsewhere instead.

European Countries with Easy Immigration

Ireland

Ireland is currently one of the top destinations for US expats, with a 60% increase in applications this year alone.

Balancing progressive values and innovation with a culture that’s rich in tradition, Ireland is already home to a large community of US expats.

Thanks to its robust infrastructure and English-speaking workforce, it also serves as the European headquarters for many of the largest US companies.

Sure, it has some of the worst food and weather in the region, but it also has Europe’s best passport.

While not a part of the Schengen area, Ireland does belong to the Common Travel Area.

In practical terms, this means Irish citizens enjoy friction-free transit between both the EU and Britain – which is why Irish passports have become such a hot commodity post-Brexit.

Indeed, after Brexit, many Britons took advantage of Ireland’s generous citizenship by descent process, which grants citizenship to those with an Irish grandparent.

As a US citizen with an Irish parent or grandparent, this is one of the easiest ways to gain an EU passport.

Portugal

Once the number one destination for American expats, Portugal is still one of our top client destinations, though not without a degree of uncertainty.

First, the good news, Portugal is a dynamic and affordable EU member state with a high quality of living, low taxes and a pleasant climate.

Recent changes to its Golden Visa programme, however, means the real estate investment is no longer an option, and further changes are currently in the works.

Right now, the country is looking to double the period for naturalisation from five to ten years. This would have the effect of filtering out applicants who aren’t interested in a long-term commitment, which makes perfect sense.

Even if these changes go ahead as planned, Portugal remains an attractive option, especially if you are looking for a safe, European country for your family to put down roots in.

That said, we would advise you to hold tight until the ruling is made, as things could still change in the meantime.

Policy changes like this are common and only highlight why it’s so important to act quickly and get advice early on.

Italy

Jimmy Kimmel won’t be on the White House Christmas card list this year, but if the late-night host ever needs to skip town, he’s got options.

Kimmel was eligible for citizenship by descent thanks to an Italian grandparent, prompting a spike in searches for Americans looking to follow suit.

Attaining an Italian passport was a lot easier this time last year, before Italy decided to tighten its regulations.

Previously, a great-grandparent or even a great-great-grandparent of Italian descent was sufficient to obtain citizenship. This has since been amended to parents and grandparents only, which again highlights the need to act quickly and get ahead of the pack.

Immigration law is just one piece of the puzzle. Having an advisor who understands European taxes will also help you save in the long term.

For example, although Italy generally has high taxes, there is a special flat tax regime for high-net-worth individuals, which also extends to family members.

Retirees looking to enjoy la dolce vita, meanwhile, can also avail of  Italy’s special 7% flat tax regime.

For more information on these tax incentives and other ways to combine second citizenship with tax savings, contact Millionaire Migrant today.

Tax-Friendly Asian Nations

Leaving Europe behind, we travel through the Middle East and Asia, but we’re deliberately ignoring some of the more common expat options and instead focusing on the most tax-friendly.

United Arab Emirates

There is a reason our main office is based in Dubai.

Our founder, Jeremy, calls it “the gold standard of a tax-free, high-growth environment.”

And with good reason: 0% personal income tax, no wealth or inheritance taxes, no capital gains.

Add to this a booming real estate market, business-friendly government and excellent infrastructure, and it’s clear to see why the UAE has become a magnet for high-net-worth individuals.

Malaysia

When it comes to business-friendly countries in Asia, Singapore is often at the top of the list.

As an expat destination for freedom-loving Americans, however, super-strict Singapore belongs at the bottom.

Americans prefer more laid-back countries like Thailand or the Philippines, but they can be a bit too laid back for our liking.

Malaysia, on the other hand, gives you the best of both worlds. It’s a business-friendly country with a relaxed pace, ideal for young entrepreneurs and families alike.

Malaysia boasts a strong economy, which is wisely pivoting from a reliance on resources to become a tech manufacturing and digital hub.

Its fast-track investor visa programme allows you to invest in the country’s lucrative real estate market and obtain a permit to reside in the country for up to twenty years.

Malaysia’s territorial tax system, meanwhile, guarantees that you only get taxed on local income, so any income earned outside the country is tax-free.

Latin American Opportunities

While many Americans are escaping to Europe and Asia, others are fleeing south of the border to countries that offer better business opportunities and lower taxes. Here are our top picks.

Panama

Famous for its canal and thriving services sector, this small Central American country enjoys a world-class banking system and a dollarized economy.

Its territorial tax system means only domestically-sourced income is taxed there, so your foreign income remains untouched.

Permanent residency can be procured through a variety of means, which include both a company formation and a real estate investment option.

Retirees, meanwhile, can obtain a permanent residency card simply by proving a minimum monthly income of $1,000 USD, making Panama the perfect place to say goodbye to those cold American winters while embracing the warm, authentic Latin flavour.

Paraguay

Nestled snugly between Brazil and Argentina, Paraguay is an affordable, tax-friendly country with one of the world’s most straightforward residency programmes.

After just 21 months of residency through a temporary residence permit, you can apply for a permanent visa.

Alternatively, you can go the Golden Visa route by investing $70,000 in the country and creating five jobs. This will get you a permanent residence permit in approximately 45 days.

Paraguay has a territorial tax system and applies a 10% tax rate across the board. Corporate tax, personal income tax and capital gains are all set at a rate of just 10% and apply to locally sourced income only.

Caribbean Citizenship Programs

Finally, we get to the Caribbean, home to some of the world’s most famous citizenship programmes.

While they might not offer the same lifestyle as Europe or Asia, they’re ideal for US citizens looking to extricate themselves from the IRS and obtain a second citizenship fast.

And since this is the region where citizenship by investment was invented, it makes sense to start with the grandaddy of them all.

St. Kitts & Nevis

The twin island nation of St. Kitts & Nevis is home to the world’s oldest citizenship by investment programme, and still one of the most popular globally.

If you’re looking for a fast-track second citizenship option, this is it. St. Kitts & Nevis offers a solid passport for a $250,000 donation or, the preferable option, a $325,000 investment in real estate.

Foreign-sourced income isn’t taxed, making it ideal for global investors, while Nevis’ famously impregnable trusts are ideal for estate planning purposes.

Dominica

The Commonwealth of Dominica is another citizenship by investment pioneer, with a programme dating back to 1993.

For a $200,000 investment, the country offers a fast track to citizenship in approximately 6 to 8 months, with no physical residency requirements and a passport offering visa-free travel to over 140 countries.

Antigua & Barbuda

Another twin island nation, Antigua and Barbuda, came relatively late to the citizenship by investment game but has since carved out a niche for itself by positioning itself as a family-friendly option.

An investment of $230,000 grants up to four family members a second citizenship in just eight months. With that comes a passport offering visa-free access to over 150 countries.

Grenada

Another Caribbean country with fast-track citizenship is Grenada, offering you the chance to gain a second passport in as little as three months.

Investments start at $235,000 per person. There’s also a real estate option for $270,000, but, as real estate investments go, we think it’s wiser to invest elsewhere.

One of the key selling points of a Grenadian passport is that, in addition to granting you visa-free access to 145 countries, you can also get an E-2 investor visa, which allows Grenadians to live and set up a business in the US.

Which obviously defeats the purpose if you’re looking to leave the United States permanently, but it’s still worth mentioning here as it’s one of the Grenadian passport’s main selling points.

St Lucia

Launched in 2016, St. Lucia has the Caribbean’s newest citizenship by investment programme. It’s also one of the most flexible and affordable.

Prices start at $240,000 for the donation option, $250,000 for an approved business investment, or $300,000 for a bond or real estate investment option.

The result is a St. Lucian passport, offering visa-free travel to over 140 countries, within a four to six-month timeline.

Caribbean Citizenship By Investment Advice

As you can see, the Caribbean is a competitive marketplace with different countries vying for your capital.

Each option has its own specific pros and cons, something which truly comes into play if your ultimate goal is to obtain second citizenship first, before applying for another citizenship or residency elsewhere.

Our job is to simplify all of that and make sure you get the best solution for your needs.

Looking for a second citizenship but not sure where to begin? Then talk to Millionaire Migrant today.

Financial Planning for US Expatriation

Leaving the United States permanently requires careful planning. And we recommend you start right now.

Even if your exit timeline is ten years from now, the sooner you get your American affairs in order, the smoother the process will eventually be. 

Now is also the time to start researching candidate countries in which to live, while also learning more about the unique challenges American citizens face when it comes to international tax planning and banking.

Have questions? We have the answers. If you’re looking to start a new life overseas but are finding all the red tape overwhelming contact Millionaire Migrant today.  

Banking and Investment Considerations

Although a growing number of countries enjoy tax treaties with the US, there are still other complications to be aware of, particularly when it comes to offshore banking.

Thanks to the Foreign Account Tax Compliance Act (FATCA), foreign banks are reluctant to take on US clients because it’s just too much hassle.

This can be a shock to Americans expecting a warm welcome, only to be told, either directly or indirectly, “We don’t want you.”

Don’t take it personally, they just don’t want the paperwork.

Currency Diversification

By extricating yourself from the US system, however, you are able to gain greater access to the global banking system.

This, in turn, lets you take advantage of superior offshore banking services, including high-yield, multi-currency savings accounts.

So, instead of being tied to the dollar (and the IRS), you enjoy the benefit of complete diversification and lower taxes instead.

International Tax Planning

America’s unique tax system means that, no matter where you go in the world, as long as you retain US citizenship, you still need to file reports with the IRS.

The only other country on the planet currently doing this is Eritrea, a small African nation nestled between Ethiopia and Sudan.

(For context, Eritrea is currently ranked near the bottom of the Global Corruption Index, below Myanmar, Afghanistan and North Korea, while still taxing its citizens just like America does.)  

The ultimate goal, therefore, is not only to leave the US behind but to renounce your US citizenship so you are no longer subject to its draconian tax regime.

However, you also need to think carefully about what tax regime you want to live under instead.

You may discover a quiet corner of Europe and fall instantly in love. Sure, the taxes aren’t much better, but the cost of living is lower, and you finally feel at home.

Great, problem solved.

Or you may obtain a second citizenship, but realise that’s just step two of three. Your ultimate goal is to scale your business by paying as little tax as possible, so you may wish to obtain residency in a low-tax jurisdiction instead.

Citizenship, residency, and tax residency – these are all complicated topics you will need to understand to take full advantage of all the opportunities that exist overseas.

To build the best possible future for you and your family, talk to the team at Millionaire Migrant today.

Pension and Retirement Benefits

Finally, a quick note on pensions and retirement benefits.

Before you can properly expatriate, you need to remove anything which may tie you to the US financial system, and this includes pensions and retirement funds.

Unless you do so, you will still be tied to the US financial system and, therefore, will still need to pay and file taxes.

As you might have guessed, as US-based assets, these may also factor in when it comes time to pay your US exit tax, so before going any further, it’s vital you get expert advice.

Conclusion

While many people harbour romantic notions of getting on a plane and never looking back, few actually take the plunge and embark on a new adventure overseas.

Leaving the United States permanently is a complex process, and considerable pre-planning is required. Not least of which are the financial pitfalls which come from navigating the process unassisted.

Done correctly, however, the rewards can be life-changing, with opportunity and fulfilment beyond your imagination. But the more you procrastinate, the more you risk letting those opportunities slip by.

So get the benefit of our decades of experience to find the best solution tailored to your specific needs. Contact Millionaire Migrant today.