Eduardo Saverin, a Brazilian born, co-founder of Facebook denounced his United States citizenship prior to the initial public offering of the company, saving him anywhere from $60 to $100 million in U.S. taxes. Mr. Saverin has been living in tax-friendly Singapore since 2011. Singapore holds a maximum personal income tax rate of twenty percent, including no taxes on capital gains. U.S. citizens and green card holders, on the other hand, must pay U.S. taxes on their worldwide income. Mr. Saverin denies he is renouncing his citizenship for financial purposes. If in fact, Mr. Saverin is abandoning his U.S. citizenship to avoid taxation, he will be inadmissible to the United States in the future.
To read more about Mr. Saverin’s situation, click here. To read more about a new law being proposed to make it more less favorable to renounce U.S. citizenship based on taxation, click here.