| Renouncing any citizenship should never be taken | | | | beneficial to renounce their citizenship for tax |
| lightly. For practical purposes, if not legally, it is | | | | purposes. Illegal Immigration Reform and |
| difficult to reverse once it is done. However, | | | | Immigration Responsibility Act of 1996, Title V, |
| expatriating does not mean you can never return | | | | Subtitle C, Section 352, Exclusion of Former |
| to the United States. There may be benefits as | | | | Citizens Who Renounce Citizenship to Avoid U.S. |
| well as disadvantages. That depends upon the | | | | Taxation says: "Those who renounce U.S. |
| reason for which you are expatriating. | | | | citizenship after September 30, 1996 in order to |
| There are many misconceptions about | | | | avoid U.S. taxation are excludable from the U.S". |
| expatriating and what you give up and what you | | | | So, be careful if you wish to later visit the U.S. |
| retain. Based on my research the points made | | | | You might be excluded. |
| below appear to be correct as of the time of the | | | | - You give up your right to social security |
| writing of this article in July of 2010. As laws are | | | | benefits. According to the Illegal Immigration |
| constantly changing or being updated, make sure | | | | Reform and Immigration Responsibility Act of |
| to check with an attorney or other legal expert | | | | 1996, Title V, Subtitle A, Section 503, Ineligibility of |
| before making any decisions based on the points | | | | Aliens not Lawfully Present for Social Security |
| below. | | | | Benefits, "An alien who is not lawfully present in |
| One specific warning is in order. Unless you want | | | | the U.S. is ineligible for social security benefits on |
| to be a person without a country, never consider | | | | or after December 1, 1996. Since 1996 other |
| renouncing your U.S.citizenship before obtaining | | | | proposals in Congress related to social security |
| citizenship in another country. The first step to | | | | may also effect you. Whatever the rules are that |
| expatriating is to have a second passport already | | | | are in effect for aliens when you renounce your |
| in hand. | | | | U.S. citizenship would apply to you after |
| What do you give up? | | | | renouncing. |
| - You give up your United States citizenship. This | | | | - You may also be giving up your rights to |
| is obvious but important because you are giving | | | | retirement benefits of other types. Private |
| up any rights and any obligations which go with | | | | retirement benefits depends on the rules and |
| having that citizenship. Although someone who has | | | | regulations related to your employer. As long as |
| renounced their U.S. citizenship can generally get a | | | | those regulations are in conformity with federal |
| visa to visit (just like other aliens from their new | | | | regulations, you still may be able to collect private |
| country) it is not guaranteed. This is a major | | | | employment retirement benefits. |
| consideration if your family members still reside in | | | | Most individuals who renounce their U.S. citizenship |
| the U.S. | | | | do so for either political or financial reasons. Only a |
| - You give up having to pay U.S. taxes. This could | | | | very small percentage of citizens do so each |
| be a good thing. U.S. citizens are required to pay | | | | year, but those who do must carefully consider |
| taxes on their world wide income, so becoming a | | | | the repercussions. If you are even considering |
| non citizen would stop this taxation. But don't get | | | | such an option, you should research the |
| too excited too fast. The U.S. Treasury | | | | ramifications thoroughly, and do not forget to |
| Department estimates that only someone with | | | | start working toward a second passport in a |
| more than $5 milllion in assets would find it | | | | country of your choice. You will need it. |