Facebook Co-Founder Saverin Gives Up U.S. Citizenship

[NorthAmericanguy]

"Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill."


You guys can read more here:

http://www.bloomberg.com/news/2012-05-1 ... e-ipo.html




This comment at the end of the article is spot on:

Yeah, it's moving time again.
This party is over.
The spirit is definitely no longer American.
It's become mediocre.
Malaise.
Numb.
Newpid.
Shleppy.
Liberal.
Gaye.
Feminized.
Socialism.
Arrogant, selfish.
All the values i don't appreciate

[zboy1]

I've posted several articles before of celebrities, politicians, and businessman, moving abroad for various reasons as well. It's an increasing trend you're going to see more in the future...

[Jester]

Please keep posting these, guys. First, I like to track what those "in the know" are doing.

And second, it's good to see a fellow frog make it out of the pot.
(Jealousy notwithstanding.)

[polya]

Now every other guy needs to follow him.

[Repatriate]

He's not doing this for ideological reasons. He's just dodging taxes like the usual billionaire. If I were a billionaire i'd probably be doing what he's doing as well. His choice of home base is a good one especially as someone with his means.

[sushiman]

He's a Singapore resident, good city if you have some money, 85 and sweaty all year long. But yeah even if it's just for tax reasons I say good job, why pay them $3B.

[MrPeabody]

The problem is the FACTA law which is an IRS impossibly complicated law which requires foreign banks to report income of US citizens. In another article I read, it says that Foreign banks all over the world are starting to refuse American clients. I wonder how Americans are going to be able to live abroad, if they can't get a bank account. In the Netherlands it wouldn't be possible because most every transaction is done by pin card. Even with my Dutch bank account, they will only allow me to have a savings account and I can't invest in any other products. If I gave up my American citizenship, I would be a freer person.

http://www.bloomberg.com/news/2012-05-0 ... looms.html

[Jester]

...I wonder how Americans are going to be able to live abroad, if they can't get a bank account. In the Netherlands it wouldn't be possible because most every transaction is done by pin card. Even with my Dutch bank account, they will only allow me to have a savings account..

Opening a local bank account is my number one requirement for living in a place.

A lot of countries only allow savings accounts, at least to start. Thailand, Paraguay...

And a lot don't allow bank accounts at all, unless you have a job there (Japan)... or residency (Panama)... or live there a while first (Colombia). Which makes it damn hard to move there, unless you want to depend on suckling at the ATM cash tit. With low limits ($200 in Colombia) or many ATM locations that don't work for foreign bank accounts (France, Japan, Korea) that would seem awkward. And surely one is not going to live off a credit card in a cash economy - staying at and eating at the most expensive places that do take credit cards.

But now you raise another wrinkle. Transaction by pin number in a mostly non-cash economy. So do they give you a pin number card with your savings account?

[Jester]

He's not doing this for ideological reasons. He's just dodging taxes like the usual billionaire. If I were a billionaire i'd probably be doing what he's doing as well. His choice of home base is a good one especially as someone with his means.

I agree, if I had $10,000 or more to invest in securities or metals, I'd use Singapore.

Switzerland or Luxembourg or Caymans may come into play for those with $500k USD or (much) more, but Singapore seems damn safe for virtually any amount if it's security and stability you want rather than secrecy.

And their tax and residency rules seem designed to accomodate investors.

[Jester]

....Singapore.... 85 and sweaty all year long.....

Us beginners really appreciate such tidbits of info. Yes I've heard Singapore is "hot". Hell, Los Angeles is "hot" sometimes, but you can stand it if you have to. "Hot and sweaty" -- ahh a horse of a different color. OK. I wonder if we have climate threads on HA? I'll need to take a look.

[Rock]

The problem is the FACTA law which is an IRS impossibly complicated law which requires foreign banks to report income of US citizens. In another article I read, it says that Foreign banks all over the world are starting to refuse American clients. I wonder how Americans are going to be able to live abroad, if they can't get a bank account. In the Netherlands it wouldn't be possible because most every transaction is done by pin card. Even with my Dutch bank account, they will only allow me to have a savings account and I can't invest in any other products. If I gave up my American citizenship, I would be a freer person.

http://www.bloomberg.com/news/2012-05-0 ... looms.html

FATCA is the biggest pain in the ass for US persons too. There's a whole new form we have to fill-out starting from 2011 tax year which requires all the details of each foreign account we have beneficial ownership or signing authority over. Max balance, account number, institution address, and the forms on which you reported the interest and/or capital gains all have to be spelled out for each and every account. This is separate from the FBAR forms we have to submit to Treasury each June which includes a lot of the same info (lots of overlap).

The potential punishment for failing to do either are draconian - confiscatory civil penalties and real possibility of jail time on criminal side. Back in2009, some 4,500 American UBS customers where basically forced into a voluntary disclosure program in which they had to pay all back taxes back to 2003, accuracy related penalties, interest on tax plus penalties, and a 20% FBAR penalty on max balance ever in the account during all those years. For many of those clients, the total bill was higher than all the money they had in the account! Many were wiped out.

Not surprisingly, most European private and investment banks I've contacted no longer want business from US persons. At best they will refer you to their US branch (for the largest institutions which have one) and the product lines available in those branches are much more limited and restricted.

Being a US person limits your investment options overseas, requires lots of special paperwork 2 times a year, and costs a lot in taxes if you generate a significant amount of income or gains from these sources.

Being a US person is also extremely costly for those who have a very high salary in a low tax locations such as Hong Kong. Consider 2 people, both making US$1 mn per year in a HK investment bank. Person A is British and Person B is American. Person A will pay approximately US$150,000 in taxes to Inland Revenue Dept. in HK and be done. Person B will pay the same to HK but then be liable for an estimated additional US$158,000 to US. Basically, your total tax burden will be more than double your European and Aussie colleagues who are taking in the same total package.

The problem with renouncing your US citizenship is:

- You need a second citizenship secured or you would become stateless

- No matter what your new citizenship is, you can always be refused a tourist or other visa by the US State Department. If you have an arrest or criminal record in States or if you get arrested on even something relatively minor there in the future, that could be grounds to refuse your further visa applications. I know of one Canadian who got arrested for pissing in public bushes while drunk. The next time he wanted to visit, he was denied a visa.

[Jester]

FATCA is the biggest pain in the ass for US persons too. There's a whole new form we have to fill-out starting from 2011 tax year which requires all the details of each foreign account and we have beneficial ownership or signing authority over. Max balance, account number, institution address, and the forms on which you reported the interest and/or capital gains all have to be spelled out for each and every account.

I think the U.S. law is the only one requiring foreign banks to comply.

But for what it's worth, citizens and residents of some other countries do have to reveal foreign bank accounts similar to FBAR. These seem to include Philippines, Colombia, Uruguay, Venezuela, Belgium, and I suspect several others in Western Europe.

Doesn't seem too bad, till you realize that half-year stay overseas in a second home, means they get to know all your assets around the world. A lot of compliance.

[Jester]

He's a Singapore resident, good city....

Shit it DID say "resident" didn't it? he hasn't even got a passport I bet. He still has his Brazilian citizenship and passport, I'd wager. And judging from his name - maybe an Israeli one too.

[ph_visitor]

Yeah, it's moving time again.
This party is over.
The spirit is definitely no longer American.
It's become mediocre.
Malaise.
Numb.
Newpid.
Shleppy.
Liberal.
Gaye.
Feminized.
Socialism.
Arrogant, selfish.
All the values i don't appreciate

Those on Earth who share the ideals of mobility, freedom, opportunity, low taxes and minimal bullshit moved to North America from 1700-2000.

Now it is time to find another place, or places, to seek out those values as America is no longer the place for them.

Paired with a Developed-Nation passport and Other Nation work/life, one can lower taxes to zilch.

You also have to provide for yourself as Asia has zero safety net. Just like the US of A pre-1913.

100 CNY a month is not enough to eat with, and that's what pensioners get in the PRC.

Get out while you can.

The Clampdown is coming...

[NorthAmericanguy]

You also have to provide for yourself as Asia has zero safety net. Just like the US of A pre-1913.

Well, the safety net used to be FAMILY. It's such a foreign concept to young people these days who move far away from their parents and start lives of their own.