Overseas Pensions Stop US Expats Giving Up Passports in Run-up to FATCA
More than three-quarters of US expats and green card holders that have taken out a supplementary overseas pension contract say that they are ‘satisfied’ that they will now not have to relinquish their US citizenship to mitigate the adverse effects of the Foreign Account Tax Compliance Act (FATCA).
This is the main finding from a poll of 361 of its clients carried out by deVere Group. Some 78% of its US overseas clients that have created a tax qualifying, FATCA-compliant pension plan would ‘no longer consider giving up U.S. citizenship’ to reduce the burden of the incoming tax law.
These findings contradict Treasury Department figures published in the Federal Register, which show that 1001 Americans gave up their passports or green cards in Q1 2014 – an increase of 47% on the same period last year. This number was only surpassed in Q3 2013, when 1,130 passports were handed back.
Nigel Green, founder and chief executive of deVere Group, comments: “Against this backdrop of soaring US passport relinquishments, it is extremely encouraging that the overwhelming majority of those we polled who have created an additional overseas pension contract to mitigate FATCA’s complicated, costly and privacy-infringing demands, told us they were ‘satisfied’ with the action taken and that ‘they would no longer consider giving up US citizenship’.”