American citizens have to pay $2,350 to renounce citizenship? What kind of paperwork costs that much? (Or, why not just add more paperwork and charge $100K?)
> 1. Consular officers must confirm that the potential renunciant fully understands the consequences of renunciation, including losing the right to reside in the United States without documentation as an alien.
> 2. Consular officers must verify that the renunciant is a US citizen and they must conduct a minimum of two intensive interviews with the potential renunciant.
> 3. Consular officers must review at least three consular systems before administering the oath of renunciation.
> 4. The final approval of the loss of nationality must be done within the Directorate of Overseas Citizens Services in Washington, D.C. After that, the case is returned to the Consular officer overseas for final delivery of the Certificate of Loss of Nationality to the renunciant.
> Also, despite what the State Department says, I did not have “two intensive interviews”, unless two interviews at a window open to view of all waiting in the Passport Section at the London Embassy count. These were to make sure, first, that everything was correct on the (many) forms I had sent in, and, second, that I understood the seriousness of the step I was taking and finally to swear/affirm my renunciation. I thought it was all rather less intensive than it should have been, considering the seriousness with which I had approached it.
> the State Department notice gives an estimate of a consular officer’s time at $135 an hour working for 20 hours.
and confirms:
> “The questions are minimal and I didn’t spend more than 15 minutes at the window either time. It’s not intensive. They ask you: ‘Are you aware of the ramifications of your actions?’ And ‘Are you doing this of your own accord?” she said.
Given some of the stories of phone calls to Comcast's cancellation departments it sounds like renouncing your US citizenship is easier, but definitely more expensive.
I'm pretty sure I remember reading an article about what happens when you renounce your US citizenship, something along the lines of you being taxed for any assets you have (in the US) as if you had sold all of it on the day you give up your citizeship, please someone correct me if I am wrong, I will try find a source.
"To recap, if upon giving up US citizenship you own assets with unrealized gains of less than $626,000, you will not owe exit tax, no matter how wealthy you are. If you are required to pay tax it's less tax than you would have paid if you'd stayed in the U.S. and sold the assets. Plus, if any asset you pay exit tax on continues to rise in value post-renunication, all those additional gains are yours." [1]
Co-founder of Facebook had to pay taxes. He rescinded citizenship just before IPO when the assets were worth considerably less and just had to pay lower taxes.
He only became a US citizen as a teenager, so wasnt strongly attached to the US.
http://www.bloomberg.com/news/articles/2012-05-11/facebook-c...
When I was at the consulate looking at prices they had posted on the wall, they charged you that same amount if you wanted any evidence of your citizenship renunciation... So in total more than $5k.
Also from what I remember you are still required to file and pay taxes for five years after you renounce your citizenship...
http://www.greenbacktaxservices.com/blog/renouncing-us-citiz...
> 1. Consular officers must confirm that the potential renunciant fully understands the consequences of renunciation, including losing the right to reside in the United States without documentation as an alien.
> 2. Consular officers must verify that the renunciant is a US citizen and they must conduct a minimum of two intensive interviews with the potential renunciant.
> 3. Consular officers must review at least three consular systems before administering the oath of renunciation.
> 4. The final approval of the loss of nationality must be done within the Directorate of Overseas Citizens Services in Washington, D.C. After that, the case is returned to the Consular officer overseas for final delivery of the Certificate of Loss of Nationality to the renunciant.
"Intense"? http://hodgen.com/renunciation-interviews-intense/ gives a report from an interviewee:
> Also, despite what the State Department says, I did not have “two intensive interviews”, unless two interviews at a window open to view of all waiting in the Passport Section at the London Embassy count. These were to make sure, first, that everything was correct on the (many) forms I had sent in, and, second, that I understood the seriousness of the step I was taking and finally to swear/affirm my renunciation. I thought it was all rather less intensive than it should have been, considering the seriousness with which I had approached it.
The official estimate, reported at https://www.rt.com/usa/183972-fee-renounce-us-citizenship/ , is that:
> the State Department notice gives an estimate of a consular officer’s time at $135 an hour working for 20 hours.
and confirms:
> “The questions are minimal and I didn’t spend more than 15 minutes at the window either time. It’s not intensive. They ask you: ‘Are you aware of the ramifications of your actions?’ And ‘Are you doing this of your own accord?” she said.
Finally from http://worthly.com/news/cost-renouncing-u-s-citizenship/ I learn:
> Prior to 2010 it was free to renounce U.S. citizenship, but in July of that year a $450 was established.