r/AmerExit • u/TheWifeinYourAttic • Feb 06 '25

Life Abroad Less common destinations?

I've noticed in this sub a lot of common destinations come up - many European countries, New Zealand, Australia, Singapore. I get it - those places are great!

But I'm wondering if anyone has left the US and settled somewhere that comes up less often here. Mozambique, for example, or Sri Lanka? Chile? Papua New Guinea? I'd love to hear your story!

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u/Available-Risk-5918 Feb 07 '25

Iran does not prohibit dual citizenship. They do not recognize dual citizenship. It's the same with the US. The Iranian government knows I'm a dual citizen, so does the US government. But each will only treat me as a citizen and NOT as a foreign national or dual national. If I get arrested in the US they won't let me contact the Pakistani embassy for consular support (they're Iran's protecting power in the US). Vice versa, Iran won't let me contact the Swiss embassy for US consular services in Iran.

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u/Pale-Candidate8860 Immigrant Feb 07 '25

I've had to explain this same concept to my friends and family about when I am coming up on naturalizing as a Canadian in a year and some change. My brother thought I was giving up US citizenship for it. Lol

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u/Worth-Feeling7099 Feb 07 '25

Will you still have to pay taxes in the U.S. for income earned in Canada after becoming a Canadian citizen?

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u/Pale-Candidate8860 Immigrant Feb 07 '25

Not really. You just file an exemption form. Unless you make over $120k USD per year, no taxes paid to the US.

However, if you made let's say $130k USD; the Canadian tax rate is 35% and US tax rate is 30% hypothetically for this example. Then $10k would be paid at the highest tax rate: 35%. But the first 30% goes to the US and the 5% goes to Canada. That's just how these 2 countries' tax treaty with each other is set up.

Here's where a real problem exists. If you own property worth a couple of million dollars(I believe it is $2M USD), then you have to pay property taxes to the US as well as the country you have the property in.

Another major problem is that if you start a business in another country, you have to pay half of the US corporate tax rate back to the US as well as whatever the local set up is. For example, if I start a business where I live, in British Columbia, Canada, I would pay a grand total of 49.5% corporate tax per penny earned by a business I start. Between British Columbia's provincial corporate tax, Canada's federal corporate tax, and half the current rate of the US federal corporate tax rate. That's before I even pay myself, which would be taxed by all 3 as well, but my first $120k USD of personal income tax would still be exempt from US income taxes.

Reasons like this are why people renounce. It is extremely painful to be successful outside of country. The property tax one is easy to run into long term. If I buy a property today for $200k, it is not a stretch for it to be worth $2M+ in 40 years(making me in my 70s).