9 Things to Consider Before Renouncing Citizenship

hello traders my name is Andrew Henderson nomadic capitalist nomadic capitalist calm here at one of my homes back at home after some travels and I wanted to talk today about citizenship renunciation and specifically what you need to think about and for this video I may actually refer to some notes I do these for most the time very extemporaneously but I made a list of nine different things that you need to consider if you're planning and giving up your citizenship now this is largely designed to speak to people who are US citizens and that may want to renounce their citizenship for any number of reasons I've talked about my own experience there is certainly not something for everybody it's certainly not something that you have to do or should do out of anger but US citizens might want to consider this if they're living the nomads capitalist lifestyle other folks might want to consider it we had a guy once who worked with us who was Austrian but qualified for another EU citizenship as well as a South American citizenship and the question was would you be willing to renounce Austrian citizenship for the other two so these questions these thoughts these considerations will apply to u.s. citizens mainly but I think a lot of them would apply to someone who may be looking to create a passport portfolio and they're limited by dual citizenship in their country so the first thing that I think you need to consider when you're looking at the issue of renunciation is what are you going to do differently you know it's one thing to say I don't like the Vietnam War or I don't agree with the Iraq war I'm gonna renounce my US citizenship you know how does that improve your life I was I talked I have a video and you're to explaining my decisions and part of it is I feel much more aligned now on a personal level and so I understand the decision to do that but obviously if that's your only reason then you need to figure out hey you know how is my life gonna be different you know right now for example a cryptocurrency investors there are folks who want to renounce the US citizenship because they want to participate in icos or they want to hold certain types of crypto investments and they can't as a US citizen I know folks who already live overseas they're dual citizens maybe they have a really good - you're a passport and they just can't get any kind of bank accounts that can't participate in investments I have one guy who's non-us citizen business partner is paying us tax as a result of working with him so what would be different if you renounced well in those cases your us your non-us partner wouldn't be paying us tax you'd be able to open those bank accounts you'd be able to invest in those icos so I think that's the important question when someone comes to me and I'm helping them I always ask questions like that because I want to get to the root of things I like to approach this from somewhat of a clinical angle where I really get down to the root because what you're going to do afterwards is important if you're a US citizen the second thing to consider is going to be the exit tax there are three different ways to trigger the exit tax we've got a video on that separately here on YouTube I don't want to repeat that content here but are you going to be subject to an exit tax as a US citizen if so how do you plan for that are you married or you're not married you know are there is there a gifting strategy you can employ employ if you're planning on renouncing in the future or you may be renouncing the future what can you do now over the next 1 2 3 4 5 years if you don't need to renounce tomorrow to possibly reduce that exit tax that's something that you definitely want to consider how does that exit tax apply to you a lot of cryptocurrency guys again you see you know one day they've got five million dollars and they're gonna trigger an exit tax because all their money's on exchanges the next day you know they're cryptos drop and now they have two million dollars and so there may be just some general market and investment things you should take into account but exit tax has to be considered number three what's your tax situation gonna be after you announce so you know I think what you have to be careful is that you don't jump from the fire back into the frying pan there is a way to renounce your citizenship and to go and to pay no tax or to pay very little tax what some people have to keep in mind I had a guy who had a business selling stuff on Amazon and he was actually benefiting from a tax treaty where if he was no longer a citizen of his country he wouldn't have that treaty anymore and his taxes would go up so it's important sure that if you renounce you don't actually end up paying more if it's also important understand that you know if you don't have the u.s. to rely on well some other country want to tax you or where are you going to be spending your time how do you make sure that they're not going to tax you where's your company can be based how is that going to work in with your new status so there's a lot of considerations to make sure that both you is one person and your company is a separate entity will be taxed the way that you want that may be zero that may be minimal that may be hey I just want to live in France and pay a fortune that's okay as long as you know what you're getting into so that brings me to consideration number four where will you go where are you going to spend your time so from me you know the last four years of my US citizenship I spent six days in the country so where I was gonna go is not at issue however there are people who come to me asking for help saying hey Andrew I live in the United States and again I have one of those issues I mentioned earlier or some other issue I'm willing to move outside of the United States in order to solve that problem I don't know where I'm gonna go and so I have to work with them and figure out where they're going to go where they're gonna get a residence permit do they want to live in the country where their other passport or other passports are issued right people who buy these economic citizenships in the Caribbean usually don't want to live there most of those islands are not tax free so again we don't want to go from the frying pan or the fire to the frying pan so where are you gonna go what's your residence permit strategy one of the tax implications there how do you get that again if you're renouncing in the u.s. is it gonna be more difficult to live in that country are you gonna be doing visa runs so you just gonna be a perpetual traveler you could then extrapolate that into how am I going to get visas if I need something we'll cover that in a minute but where are you gonna spend your time is an important consideration I have guys who have come to me having already renounced their citizenship and saying I don't know what to do now I need to put together a kind of a post renunciation strategy and I think that it's worth considering that had they come to me before they renounced I would have set that and delvis with them so number five consideration number five is where are you going to bank some US banks may not want you anymore I think that's rather rare US banks generally are pretty open to foreigners there may be some banks around the world oddly enough that may make your life a bit more difficult if you are no longer a US citizen at the very least they're gonna want you to update them on that status and you're going to want to update on that on that status once you don't want your stuff reported anymore obviously where you're gonna bank may be easier you're gonna have more options there are certain banks that don't want even former US citizens at least for a certain period of time so where you're gonna Bank is gonna be important and for some people they say hey if I am NOT a US citizen I don't want my money in the US I want it all out maybe you want to keep your money maybe you don't there's a lot of considerations with what you're going to do with your money consideration number six how are you gonna travel what are your visa-free travel privileges we've got a lot of videos here on YouTube and I recommend that you check them all out recommend you subscribe as well where we talk about how to create a passport portfolio how to enhance your visa-free travel again if you're the citizen of the United States when you're planning on renouncing or if you're Japanese or Austrian or some other tra country that doesn't allow for dual you have to consider what are my travel permit is gonna be for me obviously I lost a few travel privileges and when I look at it now not only if I want to be a bit more settled in my life I don't want to be in 35 countries a year anymore I have all the knowledge from going to all those countries over the last ten eleven years but you know if I have to get a visa to go to New Zealand is at the end of the world for me not really if I wanted to go to New Zealand they probably would have by now in 33 years but that does have to be considered where do you need to spend time do you attend conferences in a certain country if you attend conferences in you know the UK does your passport get you into the UK if you you know have friends and family somewhere that you want to see and you're used to just going to Australia every year will you need a visa for those I do a video called you Cunha you see you na where I talk about the five most difficult countries get back into for people who renounce definitely check that out but it's worth considering now a lot of people think that getting of these is the end-all be-all you know even my my parents who travel there just used to everywhere they turn up here's my passport get a stamp on you go that doesn't mean that getting visas are difficult I did a visa on giving a video and doing a Thai visa not difficult at all so getting visas is not the end of the world but you have to be aware of how that works one of the places that you visit you do business you fly through etc that all has to be considered and I think that's why having a passport portfolio is important consideration number seven if you're a US citizen how will you come back to the United States if you want to if you need to again if you're speaking at conferences if you have friends if you have family I had one guys say Andrew I don't want to get a visa for my mother's funeral how are you gonna do that there's a lot of nuance to that we talked about that when I sit down with folks and we put together their strategy but how are you going to come back to the United States there are certain things that you need to do consideration number eight again if you're a US citizen what are your u.s. assets a lot of people have mistaken beliefs about what happens with your u.s. assets when you renounce some people think that only the u.s. assets are taxed as part of the exit tax wrong so were the foreign ones some people think you can't have USS at twenty renounce wrong there may be special tax treatment in some cases the tax treatment for non-citizens is good such as with bank accounts in some situations the tax treatment for non-us citizens is worse suffice such as in some property deals so if you're holding real estate in the United States that you rent or that you plan to sell you want to fix and flip whatever it's worth considering how that's going to be affected in your renunciation or even in your dream card or relinquishment but there are a lot of misunderstandings there and generally people are pleasantly surprised at how they can handle their u.s. assets but there are things that you need to think about and really the ninth consideration is a rather blanket consideration that I would call future changes what's gonna change in the future I wrote a blog post a while back about how I believe that visa-free travel is only going to get easier forty or be passports in the future you know if you're Rwandan for example your travel privileges probably aren't going to get that much easier if you are Montenegrin I think that your travel privileges are going to get better and I'm seeing that with actually one of the passports that I hold we're actually new countries are coming on and offering us visa-free travel you also see other countries that are coming out and issuing visas more countries are coming out and rather than having to mail your passport or go to an embassy you just fill out a form online so a lot of procedures are being liberalized and and this is why again having a passport portfolio is a good thing but there may be certain countries there's been speculation that the EU might be a bit harder on certain country citizens perhaps some of these citizenship by investment programs due to their banking transparency issues there I don't necessarily put a lot of stock into that but again it's it's important to be prepared and this is why again having options is good having two passports and then getting rid of one may not be the best strategy having three or four passports or having the two and then getting rid of the one and then being on the way to the other two is maybe a good strategy if you have passports that don't have EU access or you feel may lose it in the future maybe you get one of the investor visas and you lock up the EU and now you have to worry about your passports what could change in the future you know could travel privileges change I tend to think that if you get the right passport you won't have an issue could the US or Australia or other countries make it more difficult you know Trump has talked about limiting certain migration programs in the United States could that be an issue you know US and other countries have talked about logging into your social media accounts if you want to get a visa I don't see what that would necessarily be an issue but it's certainly something that may be a bit more difficult maybe certain changes just make you not want to go certain countries or make it make you not want to invest in certain places you know is there you know imposition of some kind of global tax these things ought to be considered and I really hesitate to put too much stock into speculation I encourage people to be prepared when someone comes to me we really get them organized in terms of covering all the bases that they need but not covering mythical bases that just make them feel good and that wastes money and time but it's important to understand and to work with someone who understands you know where's the world heading I think that in general I even made a video about it being a tier B citizen and being a nomad capitalist living this lifestyle I think is going to get better there will be some things that change and you're gonna have to stay on top of it but if you're planning on changing your citizenship status these are nine things that you definitely want to consider definitely you should also consider subscribing to our channel here we put out lots of videos on how to live this lifestyle have illegally reduced taxes how to increase your options with second Passport second residence is traveling around making investments around the world and if you'd like some help with this stuff if you're saying you know what I want to renounce my citizenship or maybe I do I'm not sure I want to solve this problem on a Payless and tax I want to do whatever you can go to Nomad capitalist calm and we have a little button you can click to see if you're a good fit Nomad capitalist calm we're always looking for people who are successful business owners investors etc who are considering what do I need to do to be free and to keep one more of my own money and to live life on my own terms so definitely consider that as well

Channel: Nomad Capitalist

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Keywords: things to consider before renouncing citizenship, how to renounce us citizenship, how to renounce citizenship, citizenship renunciation, us citizenship renunciation, should i renounce citizenship, offshore plan, offshore strategy, plan after citizenship renunciation, what to do after renouncing citizenship, second citizenship, second passport, second residency, residency permit, nomad capitalist, expat life, nomad life, zero tax countries, business taxes, how to reduce taxes

Id: U4Q1Zp0ILB0

Length: 14min 39sec (879 seconds)

Published: Tue Apr 17 2018