Personal Finance & Money Asked on January 6, 2021
Does renouncing one’s US citizenship have the same tax implications as renouncing one’s US lawful permanent resident status (i.e., giving up one’s green card)?
If that matters (e.g., for tax treaties):
https://www.lawyers.com/legal-info/immigration/citizenship/advantages-and-disadvantages-to-u-s-citizenship.html (mirror) claims that:
Once you become a U.S. citizen, it’s difficult to ever escape your tax liability to the U.S. government, even if you voluntarily give up your citizenship. A green card holder, on the other hand, can give up his or her green card and not have to worry about filing U.S. tax returns after that.
but it does not give any details.
Whilz points out an interesting difference:
There will be an exit tax if you relinquish and you were 1) a US citizen, or 2) a long-term resident, which means a green card for 8 or more years in the 15 year period immediately prior to expatriation.
Answered by Franck Dernoncourt on January 6, 2021
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