More U.S. Citizens Renouncing Citizenship
We sort of feel that this is old news since we here at Four Flags Journal have received so many announcements in our email we assume many of you have as well. But we still think it worth mentioning.We have reported that the numbers of people giving up U.S. citizenship are rising. At one time no one would give up anything so precious as a U.S. citizenship. So this is a change of venue.
In May 2015, Bloomberg reported that a record was set in the first quarter when 1,335 Americans showed up at an embassy somewhere to renounce their citizenship, thus increasing the number of expatriations by 18 percent from the previous year. Now they have reported that the number in this last quarter alone has risen to 1426. And that in spite of the fact the fee charged by the U. S. government for giving up citizenship was raised from $450 to $2,350. Some believe that enough Americans are leaving the ship to warrant steps to stem the tide. How much higher might the cost to exit go? We don’t wager a guess.
The U.S. is also charging an exit tax for people who have saved substantial wealth, even though all normal tax obligations have been paid, they must now pay a thirty-percent exit tax on their assets before they can give up their citizenship.
Remember the principle that we learn from Gerald Celente. Anyone can predict the trend by looking at current events. To that we add the foundational principle of investing–a trend in motion will stay in motion until something happens to change it.
We see a trend in motion and we don’t see much on the horizon to change it–at least not any time soon. So, as usual, we look at history to see if we can tell what countries in similar situations have done in the past. Of course what we find in history is currency controls.
We are seeing this as one level of currency control which is, in our opinion, a warning of things that may be in the future. Not only for those with wealth–though certainly for them–but even for those of us who are not wealthy. If this trend continues and we decide later that it’s time to exit, we might find it difficult to do without money. Do we think that will happen? We don’t know. But we do know that while we did not plan to die early when our children were still dependent, we carried life insurance.
Hence our reasons for planting financial flags instead of keeping everything in a single country. We like the idea of having Plan B and we try to give you information to help you implement your own Plan B if you so choose. It may not be the same as ours. It should be one to suit you!
For those who plan to move not only assets–but themselves–abroad, we posted last week some real estate web sites for you to have fun with while you plan–and perhaps while you pack. One of our Paraguay subscribers so thoughtfully sent in a real estate web site for you in Paraguay. That couple has been through the process of relocating from London, and they are pleased with their decision. Just for balance we will tell you that another couple visited Paraguay recently and they were not favorably impressed. When it comes to countries, there is no one-size-fits-all. That’s why it’s important to visit first if you can. The second couple has settled in Chile.
We also remind you that, if you have anything to add to the articles here, you are welcome to post in comments. We do appreciate your emails as well.
For those who want to know more, our own Glen Roberts, formerly based in Monteviden, Uruguay, now in Asuncion, Paraguay, is a veteran of renunciation and has written a book How To Renounce Your U. S. Citizenship, available at Amazon.com
Until next time . . .
Arlean
info@fourflagsjournal.com
“Like” us at Four Flags Journal on Facebook
Feel free to leave further information or comments.
Mr.Meiryi
I have forgotten to write in your reply.
Peruvian embassy requested us to buy the CONFIRMED FLIGHT TICKETS first and we presented along with the Tourist visa application.
The total price was 4700$USD for the Confirmed Flight RETURN tickets.
When the case was rejected..The PERUVIAN embassy said to me..
WE NEED ONLY FLIGHT RESERVATION..it was your mistake to buy the tickets.
I lost lot of money to cancel the flights because it was non refundable.
so please make sure yourself..Our kindly request to you.
Thanks for your time.
GAUTAM
Hi Arlene, thank you in advance for directing this question to Gautam!
Hi Gautam, congrats on finally living your dream life, I am so happy for you! I am in a similar boat as you were a few year ago given that I have a Chinese passport. I would really love to know more about the specific challenges you faced in the immigration process pertaining to the Indian citizenship. What are some of the challenges that you think that Europeans and Americans don’t usually go through? I think I might encounter very similar challenges with my nationality being Chinese. Thank you in advance for helping me out!
Kindly,
Meiyi
Respected Mr.Meiyi
Really thank you very much for your time and posted the appreciations.
Our case was rejected and refused under the many circumstances in the embassies of PARAGUAY..ARGENTINA..URUGUAY..PERU.
These are the four embassies where our Tourist visa applications was rejected without any reason.
They never mentioned the speficic reason.
I provided all the documents during my visa applications.
But I was unlucky to understand the mind of the Immigration officers from these embassies.
Very bad experience by the Peruvian Embassy..The Visa Officer promised to grant the visa for us but the next day his mind was changed and he said to my wife..
What was your husband doing in ISRAEL ?
I wife supplied the best answer to support but the Immigration officer suddenly changed his mind and rejected the applications.
Also tow Indian girls were working in the Consulate office in NEW DELHI..those two girls suggested to the Immigration officer from the LIMA..that Please do not approve the visa for this married couple.
That Immigration officer believed her comments and then he rejected.
Anyway we have rejection stamps on our passports.
Who is an Immigration officer ? Two Receptionists or the Officer from the LIMA ??
While the Argentine embassy wanted the financial security around 15,000$USD for the Tourist visa specially for the accommodations even we provided the Hotel Reservation..as it was not suffcient and valid.
URUGUAY embassy said to us in the phone that we grant the visa only for the intelligent businessmen.,while I and my wife were mindless people so we did not get the Tourist visa.!!!!
PARAGUAY embassy refused three times visa without mentioning the official.
We had an Invitation letter but it was not helpful.
Please be careful and we pray for your succeedness.
God bless you all
Sincere
GAUTAM MAKWANA
Quito ECUADOR