What are some of the things someone permanently relocating away from the US should be aware of?
What are some of the things someone permanently relocating away from the US should be aware of?
Assume that this is not a wannabee, but someone who, for example, already has a solid job offer from an EU country, and some cash for the relocation.
You're viewing a single thread.
You'll still be on the hook for US taxes.
The US is one of only 2 (?) countries in the world that does citizenship-based taxation.
Is there an exit tax when you leave the US? France for example has that, and the new Belgian government wants to introduce it as well.
Not when you change residency, but if you relinquish your citizenship: https://en.wikipedia.org/wiki/Expatriation_tax#United_States or your residency has been revoked.
So if you remain a US citizen you owe normal annual tax (minus a credit for foreign taxes paid).
I think there is, but it doesn't apply universally. I think it was one of those things designed to catch the ultra-rich who were renouncing their citizenship to get lower taxes elsewhere, but it ends up catching a lot of people who are middle class.
I believe someone complained recently that there is one.
If you plan to return
Even if you never plan to return, you are still (legally) on the hook to file a 1040-NR form with the IRS every year.
There's a foreign earned income tax credit: this reduces your US tax bill by any income tax you paid to your residence country. For many expat working stiffs, this means they don't have to pay anything to Uncle Sam, but they still have to file a tax return.
Even if you plan to renounce your citizenship, that's a long (and often expensive) process and you have to keep filing and paying taxes until it's done.