American citizenship
As an American, you are subject to U.S. taxation. Therefore, you are required to file a U.S. tax return.
Do I need to file a tax return if I renounce my U.S. citizenship?
To renounce your U.S. citizenship, you must have filed tax returns for the previous 5 years. You are also required to file a final tax return for the year in which you renounce your U.S. citizenship. This means you cannot renounce your U.S. citizenship without filing a tax return.
What do I need to do to renounce my U.S. citizenship?
To renounce your U.S. citizenship, you must make an appointment at your local U.S. Consulate or Embassy. It may take some time before you can secure an appointment. Several months after your appointment, you will receive written confirmation that you are no longer a U.S. citizen, retroactive to the date of your appointment. This confirmation is called the Certificate of Loss of Nationality.
Does an Exit Tax exist in the U.S.?
Like other countries, the U.S. has an exit tax. An exit tax is a tax imposed when unlimited tax liability ceases to exist, in this case, upon renouncing citizenship. Generally, no tax is due if your net worth on the date of renouncing citizenship does not exceed $2 million.
Contact us
Sanders US Tax Services specializes in preparing U.S. tax returns. We have offices in Munich and Zurich. Contact us for a completely free consultation with a tax advisor.
