Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

FATCA Pushes “Accidental” Americans to Give Up US Citizenship

time.com

Post reply on HN
Print view View original

131–140 of 210 posts

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#131

Post by Mediterraneo10 »

throwawayiionqz wrote: post #77

The best way out of this is the EU asking for reciprocal measures in future trade agreements and tax treaties (fatca reporting, residency based taxation). If US banks had the same reporting requirements to EU countries regarding EU dual citizens accounts, this absurd situations of being denied banking relationships in the country you work and reside would stop promptly.

> If US banks had the same reporting requirements to EU countries regarding EU dual citizens accounts

US banks wouldn’t. The reason that the EU is wary of ending up on the USA’s bad side, is that European banks rely on large New York banks for clearing international transfers. They can’t not do business with the USA. American banks don’t have the same dependency on the EU.

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#133

Post by Mediterraneo10 »

throwawayiionqz wrote: post #107
happynacho wrote: post #95

I would love if there was an option to buy their citizenship for that $2350 fee, hell even double would be a no-brainer. Strange how some people want to get rid of it and how others want it no matter what.

Not so strange after you experience it. Walk into a bank to open an account where to receive your salary. In no time after mentioning your US citizenship, you are shown the exit door. Try every bank until you eventually lie about it as the only way go on with your life.

> Walk into a bank to open an account where to receive your salary. In no time after mentioning your US citizenship, you are shown the exit door. Try every bank until you eventually lie about it as the only way go on with your life.

Things are highly inconvenient, but not this hopeless. In most EU countries there is at least one bank that will open an account for (locally resident) US citizens, although the process does involve some extra forms where you have to write down your American Social Security Number as your “tax information number”.

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#134

Post by throwawayiionqz »

Androider wrote: post #128
throwawayiionqz wrote: post #118

Earlier quoted context omitted.

What happens the day your kid shows the wrong passport at Port of entry? TSA Officer: "Hi foreigner, you don't have ESTA?" Kid: Oh sorry this is the wrong birthplace passport. Take at look at this one plz

Plenty of countries allow dual citizenship, including the US, Canada and most of the EU, so it's not that unusual to have and travel with multiple passports.

I wonder which countries allow dual birthplaces though

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#135

Post by throwawayiionqz »

Mediterraneo10 wrote: post #133
throwawayiionqz wrote: post #107

Earlier quoted context omitted.

Not so strange after you experience it. Walk into a bank to open an account where to receive your salary. In no time after mentioning your US citizenship, you are shown the exit door. Try every bank until you eventually lie about it as the only way go on with your life.

> Walk into a bank to open an account where to receive your salary. In no time after mentioning your US citizenship, you are shown the exit door. Try every bank until you eventually lie about it as the only way go on with your life. Things are highly inconvenient, but not this hopeless. In most EU countries there is at least one bank that will open an account for (locally resident) US citizens, although the process d…

Regular bank accounts may not be hopeleless after some paperwork fights. Investments accounts on the other hand are actually hopeless. Source: Googling the bogleheads forums for investments options for US citizens residing in the EU.

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#136

Post by Symbiote »

gambiting wrote: post #10
ttul wrote: post #5

Why it must cost over $2,000 to give up something that others spend much more trying to acquire is a total mystery. Surely it does not cost $2,000 to make a note of someone’s ex-citizenship.

Yeah it's stupid. But many countries have similar weird rules about this. In the UK the fee is about £400 so not too bad, but for instance in Poland the only way to do this is to write a letter addressed to the current President of Poland and only they can grant it(my understanding is that they always do, it's pretty much an automated process, but you do actually have to send a letter to the president).

What reason would there be to give up British citizenship?

The only one I can think of, is to aquire a different citizenship that doesn't allow dual citizens (like China). Although even then, the guidance on the British government site suggests they will go along with whatever crap China wants (like destroying a British passport) but allow keeping British citizenship, issuing a new passport afterwards, if requested to.

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#137

Post by djohnston »

siberianbear wrote: post #33
sjg007 wrote: post #24

I thought there were tax treaties, basically you don't pay taxes on the first $100k if you paid into the national tax system of the country you are in. I can imagine FICA taxes though might be difficult. Maybe US social security would deny benefits if you claimed them without any contributions and residence abroad.

The $100k you're referring to is the Foreign Earned Income Exclusion [1]. If you're an American working abroad, you don't need to pay income tax on your first $107,600. The exclusion does not apply to self-employment tax or investment income. That's not even the real problem, though. The problem is that banks don't want to deal with the FATCA compliance issues and just refuse to deal with Americans, period. I've expe…

Does this mean you get double taxed on everything over 107?

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#138

Post by whynotminot »

centimeter wrote: post #112
sdenton4 wrote: post #85

Earlier quoted context omitted.

The core psychology of populist American politics is "F$ck you, got mine." Taxing other people is great, putting other people's kids in cages is ok, cutting off University funding is fine once you've gotten yours, etc...

This is the coldest and most confused take on populism I’ve seen on this platform (as an anti-populist).

Populism is cold and confused and often lacks for internal logic. How else would you describe it, Mr/Ms Supposedly Anti-Populist?

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#139

Post by Brian_K_White »

mensetmanusman wrote: post #125
NotPavlovsDog wrote: post #57

US citizenship comes with a big administrative burden even if you don't live in the US. Some parents with European citizenship sometimes do not file an American birth certificate when registering their child for a European birth certificate. I.e. if the country facilitates registration of child based on parent citizenship and not birth location of child, they just never declare the child was born in the US. "It was a…

Many thoughts occurred while reading this, including: ‘Almost the pinnacle of first world problems’

Having your entire life shut down, through no fault of your own, by some entire remote country you have no dealings or relationship with and no power to fight, is a first world problem?

Even in the thirdest of third worlds, people have some sort of shop which is their families livlihood, which could be taken away and destroyed, and which would be devastating.

This insensitivity sure is first world though.

Re: FATCA Pushes “Accidental” Americans to Give Up US Citizenship

#140

Post by throwawayiionqz »

Mediterraneo10 wrote: post #131
throwawayiionqz wrote: post #77

The best way out of this is the EU asking for reciprocal measures in future trade agreements and tax treaties (fatca reporting, residency based taxation). If US banks had the same reporting requirements to EU countries regarding EU dual citizens accounts, this absurd situations of being denied banking relationships in the country you work and reside would stop promptly.

> If US banks had the same reporting requirements to EU countries regarding EU dual citizens accounts US banks wouldn’t. The reason that the EU is wary of ending up on the USA’s bad side, is that European banks rely on large New York banks for clearing international transfers. They can’t not do business with the USA. American banks don’t have the same dependency on the EU.

FATCA is an agreement signed between countries, not between the US and foreign banks. The US certainly has more leverage with the USD than the EU with the EURO but trade agreements are made of various things and the US cannot simply bully the EU and Asian countries with FATCA indefinitely. I can't wait to see how this plays out in the next 10 years.
Post reply on HN