Comment on What are some of the things someone permanently relocating away from the US should be aware of?
iii@mander.xyz 1 year agoIs there an exit tax when you leave the US? France for example has that, and the new Belgian government wants to introduce it as well.
Not when you change residency, but if you relinquish your citizenship: en.wikipedia.org/wiki/Expatriation_tax#United_Sta… or your residency has been revoked.
So if you remain a US citizen you owe normal annual tax (minus a credit for foreign taxes paid).
Seems like it only matters if your taxable income is over ~$130k? So with foreign income exclusion that would mean you’d have to make over ~$250k/year for the 5 previous years.
At that point you can just pay your problems away…
I believe someone complained recently that there is one.
merc@sh.itjust.works 1 year ago
I think there is, but it doesn’t apply universally. I think it was one of those things designed to catch the ultra-rich who were renouncing their citizenship to get lower taxes elsewhere, but it ends up catching a lot of people who are middle class.