Just having 'normal' things abroad, like investments, own home, pension plan, easily trip 'real' taxes, not just burdensome reporting (and burdensome reporting is very costly in itself). US does not have bilateral tax deals with a lot of countries and even when they do, due to different approaches a lot of things fall through the cracks. And the recent exchange rates, really exaggerate things vis-a-vis US dollars, especially critical now if earning CHF.

I think you are looking at things through some rose-tinted glasses. If FATCA goes through, the possibities of foreigner investors divesting from US is huge. I won't get into a whole other subject of how attractive the US is for business (whole other thread), but I am quite sure other markets have profitedly greatly in recent years at the expense of the US, both in terms of attracting business and investment.

Most EU countries have high VAT (15/20%+) by US standards and high 'fuel duty'. You can not offset these against US tax, even with the agreements.

Currency exchange companies recently began 'dumping' US based customers, presumably due to FATCA.

Again, (I know, I sound like a broken record on this) once you retire, your US tax filing becomes a real challange (no 2555 allowed, navigating treaties, etc.). Those retired often have larger and more numerous accounts, and the possibilities of inaccurate 'reporting' (especially with the penalties) can become a frightening experience.

Start reading the revised 'Terms and Conditions' on your bank accounts. You'll begin to notice a number of subtle changes which, coincidentally, seem to be preparing the way for FATCA reporting. That is, if you're still allowed to have a bank account.

You are right with the VAT but I think most EU countries have higher income rates.

Who cares?

Having to report to some foreign government scumbags is anathema enough!

Tom

Not to mention that, as residents of Switzerland on this forum, what other countries have to pay isn't really relevant (with a nod to evilshell). In Switzerland we have lower taxes, higher costs, and higher (albeit not much) VAT than the US. Yes, higher salaries too. All this adds up to a tax bill from uncle jacka..... Err, Sam.

And again, I ask what services we receive for this. The consulate will still charge me when I go to see them. The military isn't likely to fly me "home" if I get stuck in Bangledesh without enough money for a ticket home. I don't use US infrastructure. So why do I pay their taxes?

6 more years....

My thoughts exactly, corbets.

It is depressing that if we want to escape these requirements, we have to sever those ties to the country of our birth.

It took 2 weeks to get an appointment for renunciation of citizenship in Bratislava. 5 days later the "loss of citizenship" was approved by the State Department and one more week the document with the state seal was delivered to me.

From first inquiry to document in hand took less than a month.

Was there a charge attached to giving up your passport?

This is indeed possible that this might happen. I was talking more about the Silicon Valley ecosystem which is still in place and a good ground for startups.

450 US Dollars.

As stated, the charge was 450$. The additional costs were just the round trip on the Wiener Walzer night train to Vienna plus the hop to Bratislava. The embassy in Bratislava was extremely responsive by e-mail, which is why it went so quickly and smoothly. I'd already tried contacting other embassies (Bern gave me date in May, 2013!!) in Germany, Italy and Bulgaria.

http://www.nytimes.com/2011/12/27/bu...l?ref=business

I thought I would post this NY TIMES article about the FATCA

Here is another interesting article:

http://www.nytimes.com/2012/04/16/bu...2&ref=business


another Times article

Hello, another US citizen, here. I've been living in Zurich for 8 years and have been a long time quiet EF member...I mostly check the forum for practical info, but don't post very often, but I did make a few friends through EF members a long time ago.

This is one of very few unbiased reports on FATCA, FBAR, citizenship based taxation in a major US paper that focuses on the burden of remaining compliant and does not vilify US citizens living abroad as rich, lazy tax cheats.

It is now linked to related blog post at IHT by the same reporter, who apparently is based in Paris (assuming he's a US citizen, he's facing alot of the same taxation issues we are). The blog post has comments enabled. I think this is a great opportunity to go and comment on the article, US taxation of expats in general, bank accounts being closed due to FATCA, etc... as our perspective is rarely reported on in US-based news outlets. Hopefully a few people in the US will read this and begin to comprehend the injustice of citizen based taxation, and the new burden associated of dealing with FATCA. Perhaps they might even sympathize with their fellow citizens (I know...getting sympathy from people in the US is probably a long shot....) At the very least, commenting on the article might encourage the journalist to continue to report on this topic.

http://rendezvous.blogs.nytimes.com/...re/?ref=global

Yeah but that number is not limited to Switzerland. Making the exchange rate and living and working in France, for example, and that turns out quite well. Not to mention even less expensive countries to live in.

Everyone knows you make more money here, because the cost of living is so high here. So you may make more, but normally the end savings isn't what one might imagine living outside, or before entering here. Personally if I made more then that tax rate, I'd be happy to pay more in taxes, because I would have more savings and a better, less harsh way of life.

I have never been subjected to a double taxation, and I went thru the US Embassy and also have my own tax attorney that helped me sort everything out. You have to be doing real well for it to matter all that much.

And we all should know the real reasons this has been happening to US dollars that made a trip abroad to foreign banks. They aren't targeting US expats, they are targeting old money that the owners did not want to be lost in inheritance taxes, and the like. I have been in a variety of economical situations since living abroad and my taxes only got easier since leaving the US.