The Challenge called FATCA
Since the United States introduced the Foreign Account Tax Compliance Act in 2010, a larger number of Americans have renounced their U.S. citizenship. This increase seems to be related to FATCA, although motives are personal and vary from person to person. The buzz around the new tax laws in the fourth quarter of 2017 however, may have resulted in a decrease of citizenship renunciations at the end of the year.
Renouncing one’s citizenship of course is a rigorous step, and should not be taken lightly, but it indicates the emotions when it concerns the power of the Internal Revenue Service and its grasp on U.S. connected persons living abroad as well as financial institutions across the globe.
Those that have been an expat for a longer period of time, probably have found their way to deal with FATCA, although many still consider it a nuisance. New American expats will probably be overwhelmed by the American tax regulations, on top of everything else they have to deal with after their relocation to a new country, another culture, their brand-new job and new colleagues, an unfamiliar language and different fiscal systems. Maybe FATCA is giving you a headache as well?
At Beacon Financial Education we know the challenges Americans overseas face. After all, we are American Expats too. We understand your financial concerns. Beacon Financial Education regularly organizes seminars with American Clubs and Schools to educate Americans and U.S. connected persons about the implications of FATCA and how they can manage their wealth while living abroad. When in need of a personal financial or tax advice, we can put you into contact with an independent financial advisor from the Beacon Preferred Partner Network. The financial advisor will also be able to help you with questions regarding IRAs, Roth IRA, 401Ks and IRA rollovers, and taxes in the U.S. as well as the country you currently reside in, et cetera.