Are taxes lower in Thailand if I renounce my US citizenship?

@Steve *********

I’ve attached the guidelines from the IRS site

@Steve ******

Your not looking to assist.

Your marketing yourself.

@Steve *********

not marketing, just adding what I thought. The original thought was wrong but the IRS post is clear - at least as clear as anything from the IRS can be. Seems you’re offended for some reason.

@Steve ******

All the information on this that I find is similar to this

How much does it cost to renounce US citizenship in 2023?

To renounce your citizenship, you must have been tax compliant for five years and subsequently pay any outstanding tax bills that you may owe.

Additionally, you must prove by the following June 15th that you’re compliant for the five years before renunciation. So, on the date of the appointment, you may be behind, but you have until the following June 15th to meet the threshold to be deemed in compliance. If you’d like to simulate the renunciation process, connect with a US expat tax expert.

Those hoping to renounce their US citizenship must also pay a non-refundable renunciation fee of $2,350 for administrative processing.2

Certain expats, classified as “covered expatriates,” are also subject to an additional expatriation tax, or exit tax. Generally, a covered expatriate is somebody who either:

Has had an average income tax of more than $178,000 over the past five years before their renunciation date,4 OR

Owns more than $2 million in worldwide assets, OR

Fails to certify that they have been compliant with their tax returns over the past five years.

Most often, covered expatriates subject to the exit tax are taxed on the fair market value of their assets at a long-term capital gains rate of 23.8% (excluding the first $767,000).5 The exit tax, in other words, is imposed as if you’d sold all of your worldwide assets on the last day that you held US citizenship. There are exceptions to this rule, but it can be difficult to predict which assets will classify as such, and how they will be taxed.

@Marty ********

it’s expensive.

There is a tax paid on all your assets.

@Steve ******

I didn’t say it wasn’t expensive but I was curious about the claim that they would calculate your future taxes for the rest of your life.

@Marty ********

that could be wrong but either way - it’s not cheap and you’ll need citizenship elsewhere. With the 90k exclusion in place most retired expats don’t have to pay any tax as long as they don’t exceed the exclusion. After that it starts at top rate (thanks Bush)

@Steve ******

I checked earlier and the exclusion was $120,000 in 2023. Getting another passport is the first step and unless you have a familial relationship with another country it could require expensive investments in that country to get a passport. Getting a Thai passport has its own difficulties.

@Marty ********

yes. They adjust the exclusion each year. About the only passport you can get without a lot of expense is an Irish passport based on parent/grandparent Irish connections (unless they’ve tightened it). So at 120k, it’s not to bad as a retiree. And the FATCA thing is a minor nuisance. I basically cut and paste it each year.

@Steve ******

that’s not calculable.

@Shane ****

doesn’t matter. It’s expensive.

@Steve ******

maybe but what’s expensive to some is reasonable to others.

@Brandon ***********

And on top of that you still have to pay taxes for several years after renouncing.

@Jo ********

This isn’t actually true though. Once you renounce, you don’t pay. The only exception is income sourced from the U.S. is always taxable in the U.S. regardless if you’re a citizen.

But once you’ve proven your taxes are current, pay the exit tax if applicable, then you’re free.

@Brandon ***********

that’s reasonable