Executive Summary

The nuts and bolts of expatriation, including the legal process of expatriation
The tax consequences of expatriation
The immigration consequences of expatriation
The pros and cons of U.S. investments once you expatriate
The tax consequences should you choose to spend more than a few months each year in the United States after expatriation

If you have not yet read Part 1: A Primer For Those Considering Expatriation, available free to all readers, please click here to read it first.

Expatriation: The Basics

Once you’ve obtained a second passport and qualified for residence in another country, you can begin the legal process of expatriation. To do so, you must make an appointment with a U.S. consulate. You generally cannot expatriate within the territorial boundaries of the United States. The consular officer will explain the consequences of expatriation and have you sign some forms. Two or more appointments may be necessary to complete the process. At the end of whatever sequence of visits applies at the consulate you choose, you’ll then hand in your U.S. passport. Anywhere from several weeks to several months later, you’ll receive an official document called a “Certificate of Loss of Nationality” (CLN). With the receipt of this document, you will have officially relinquished your U.S. nationality.

Income Tax Consequences of Expatriation

Once you give up your U.S. citizenship and passport, you have no further obligation to pay U.S. tax on your worldwide income. However, U.S. law imposes an...