The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Renouncing citizenship for tax purposes Date:  8/23/2013  12:42 PM
Author:  JAFO31 Number:  119069 of 123001

saunafool: "The U.S. laws actually make it worse. Americans cannot have investment accounts overseas. Or, they can, but the only two things which are accepted investments are cash and U.S. Treasuries.

. . .

If American law makes it impossible for me to extract the money without paying punitive taxes (i.e. 70% when you add the European income tax plus the U.S. tax) and they make it impossible for me to invest locally--because all of my retirement expenses will be in Euros, I would have to consider renouncing citizenship."

I am neither a tax pro nor af ormer expatriate, but neither statement above sounds correct to me. And with regard to the latter statement, the US gives a credt for foreign taxes paid.

"You may claim the Foreign Tax Credit for taxes paid in a foreign country. However, you may not claim a tax credit for taxes paid on any income which has been exc