The citizenship renunciation numbers for the first quarter of 2018 are here! Many expats have considered citizenship renunciation as a way to leave the burden of filing US tax returns behind, but for others, it represents cutting ties with America. Find out what the first quarter renunciation data trends are below!
What Does Citizenship Renunciation Have to Do With Expats and Taxes?
Filing expat taxes every single year, especially when you are living abroad long term is absolutely essential. The US is one of only two countries that has a taxation system based on citizenship rather than residency – the other country is Eritrea – and while living abroad, many expats feel like the taxes paid do not result in a benefit they can utilize. The only way to permanently end the onslaught of reporting requirements and/or payments is to renounce your citizenship.
2018 First Quarter Citizenship Renunciation Numbers
The US government recently published in the Federal Register the first quarter numbers of citizens that have renounced their citizenship. Between January 1st and March 31st, 2018, 1,168 US citizens have renounced their citizenship. How does that compare to recent numbers? Well, you may remember from our recent article that 4th quarter renunciation numbers decreased in a big way. However, though this first quarter total is nearly double the number of renunciations as the previous quarter, it is still below each of the first three quarters of 2017.
Percentage of Expats Considering Renunciation
Each year, Greenback conducts a survey to find out what expats think about US taxation, citizenship renunciation, and several other topics. Our 2017 survey results showed that:
- 43% of expats weren’t currently planning to renounce but would not rule it out
- 19% were seriously considering renunciation
- 5% planned to renounce.
Last year, 50% of those who were planning or considering renunciation of their citizenship cited the burden of US tax filing requirements as the primary reason.
Right now, we are in the midst of the 2018 survey, but we’re getting interesting results already! As it stands, 32% of expats who have participated this year said they would never renounce, 15% said they are seriously considering it. Those who are planning to renounce make up just 4% so far.
What Do You Think?
Now that you have the facts, we want to hear from you! What do you think about the way the US treats expats and taxes, and have you ever considered renunciation? Take our survey today and not only will you be contributing to expat research and advocacy, but you can also enter to win a $1,000 Hotels.com gift card!
Want to Find Out More About Citizenship Renunciation?
Greenback accountants are experts on the topic, and are ready and waiting to help you get the information you need! Contact us today.