Increasing Renunciations of U.S. Citizenship Among Americans Living Abroad

SOURCE www.boundless.com
Renouncing U.S. citizenship has become more common due to complex international tax laws and foreign banking restrictions, with a record high of 6,705 cases in 2020. Many Americans living abroad renounce citizenship to avoid burdensome rules.

Key Points

  • Renunciations of U.S. citizenship have surged from an average of 200-400 cases before 2009 to a record high of 6,705 in 2020
  • Complex international tax laws and foreign banking restrictions are primary drivers of this trend
  • Many Americans renounce citizenship to navigate cross-border living and working more easily

Pros

  • Helps individuals living abroad avoid burdensome tax and banking regulations
  • Highlights the need for the U.S. to reevaluate its policies towards citizens residing overseas