VANCOUVER, British Columbia — The trend is undeniable: High-net-worth Americans are severing their official ties to the United States in record numbers. In 2024 alone, more than 10,000 individuals formally renounced their U.S. citizenship—a 42% increase over the previous year and the highest on record. From billionaire tech entrepreneurs and hedge fund managers to retired professionals and international investors, the profile of the modern expatriate is expanding rapidly.
At Amicus International Consulting, we have witnessed firsthand this accelerating shift. What was once a discreet and uncommon step for the ultra-wealthy is now a deliberate, strategic decision made by those who value privacy, mobility, and financial freedom. This press release explores the reasons behind this dramatic exodus, the legal pathways that make it possible, and how high-net-worth individuals are restructuring their lives beyond U.S. borders with intention—and without regret.
The Rise of the Economic Expatriate
The notion of abandoning U.S. citizenship used to carry stigma—today, it is a practical business decision. The wealthy are not fleeing responsibility or seeking to escape justice; they are responding to a global reality in which American citizenship has become a liability for those who operate internationally.
Primary drivers include:
- Extraterritorial taxation: The United States is one of only two countries that taxes citizens regardless of residence.
- FATCA compliance burdens: The Foreign Account Tax Compliance Act mandates disclosure of foreign assets, causing many foreign banks to reject U.S. clients entirely.
- IRS overreach and audits: The perception of aggressive enforcement and increasingly complex reporting requirements.
- Geopolitical risk: Rising global hostility toward American policies has made some U.S. passport holders feel unsafe abroad.
- Loss of financial privacy: American citizens face increased scrutiny from financial institutions due to U.S. regulations.
Case Study: Hedge Fund Principal Renounces for Global Access
A principal at a New York-based hedge fund managing assets across Asia, Europe, and the Middle East found himself barred from opening private accounts in several Swiss and UAE banks. His U.S. passport was flagged for enhanced due diligence and reporting requirements. After consulting Amicus, he pursued second citizenship through Antigua and Barbuda, relocated his financial operations under a non-U.S. holding company, and completed renunciation in 2023. Today, he reports seamless global banking, no IRS entanglements, and complete legal compliance in his new jurisdiction.
Second Passports: The First Step to Freedom
Before renouncing U.S. citizenship, individuals must acquire a second passport—often through investment-based citizenship programs. This prerequisite ensures continued global mobility and compliance with international travel protocols.
Top destinations include:
- St. Kitts and Nevis: No global tax reporting, stable political system.
- Portugal: EU access and low-cost Golden Visa residency program.
- Vanuatu: Rapid Naturalization and confidentiality.
- Dominica: Affordable Investment route and robust privacy protections.
- Malta: EU citizenship via rigorous due diligence and Investment.
These programs require Investment levels ranging from $100,000 to over $1 million, but for many clients, the return is not just mobility—it’s autonomy.
The Legal Process of Renunciation
Renouncing U.S. citizenship is a legal act governed by Section 349(a)(5) of the Immigration and Nationality Act. The process includes:
- Securing a second passport
- Complying with IRS reporting requirements for the last five years
- Calculating and paying any applicable exit tax
- Scheduling an appointment at a U.S. embassy or consulate
- Signing a Statement of Understanding and Form DS-4079
- Receiving a Certificate of Loss of Nationality (CLN)
It is irreversible and must be approached with strategic planning to avoid unintended consequences. Amicus provides full-service legal support to ensure every stage is handled with precision and discretion.
Exit Tax: What the Wealthy Must Consider
The exit tax is often cited as a reason not to renounce, but the reality is more nuanced. For individuals with over $2 million in net worth or who fail the income tax compliance test, the IRS may impose a capital gains tax as if all assets were sold on the day before renunciation.
However, proper structuring can significantly reduce or eliminate this liability:
- Trusts and foundations may fall outside the scope of the exit tax
- Assets held in corporations may defer taxation
- Real estate held in foreign entities may avoid automatic triggering
Case Study: Real Estate Developer Restructures Before Renunciation
A Florida-based real estate developer with projects in Mexico and Panama sought to renounce but feared the exit tax on $9 million in appreciated holdings. Amicus advised a pre-renunciation corporate restructuring. He placed his assets into a Belizean trust and transferred project ownership to a Panamanian foundation. After legal review and tax compliance, he exited with minimal exposure and now resides in Costa Rica under a retirement visa.
Privacy and Security: Beyond Tax Optimization
While tax concerns are often the headline, most clients cite privacy as their primary motivation. American citizens are among the most surveilled in the world, both domestically and internationally. Every foreign account, Investment, or transfer is potentially subject to:
- FATCA reporting
- FBAR disclosures
- OFAC screening
- Automatic exchange of information with U.S. agencies
For individuals in controversial industries, such as political consulting or even cryptocurrency, this exposure creates constant vulnerability.
Case Study: Tech Investor Escapes IRS Crypto Scrutiny
A serial tech investor and early cryptocurrency adopter based in Austin, Texas, faced aggressive IRS inquiries regarding offshore wallets. Although his holdings were legally acquired, ambiguity in reporting rules created a legal gray zone. He obtained citizenship through St. Lucia, moved his trading to a European platform, and renounced in 2024. Today, he invests through a Liechtenstein holding company and reports exclusively to local authorities.
Banking Without Borders
Post-renunciation, clients are free to bank in jurisdictions that reject FATCA and other U.S.-imposed compliance protocols. Amicus helps place clients with private bankers and Investment advisors in regions such as:
- Switzerland: Tier-1 banking privacy and wealth management
- Liechtenstein: Confidential trust and foundation services
- Dubai (UAE): Crypto-friendly and high-liquidity private banks
- Georgia: Favorable tax policies and flexible onboarding
- Singapore: Secure but highly regulated financial environment
By decoupling from the U.S. financial system, clients experience fewer delays, lower compliance costs, and better asset protection.
Why This Trend Is Accelerating in 2025
Several recent developments have catalyzed a surge in interest from affluent Americans:
- Implementation of the Corporate Transparency Act (2024): Now requires disclosure of beneficial ownership for many LLCs and corporations, even offshore.
- Increased IRS enforcement budget and AI-powered audits
- New biometric tracking systems at U.S. ports of entry
- International political instability making American citizenship a geopolitical liability
- The expansion of AI surveillance in global finance and travel
Together, these trends have shifted the risk-reward calculation. More clients are concluding that U.S. citizenship no longer represents security—but surveillance.
Family Wealth Protection: Planning Across Generations
Renunciation is not just for individuals—it’s increasingly a family strategy. Clients concerned about multi-generational financial security often structure:
- Second citizenships for children
- Trusts that bypass U.S. jurisdiction entirely
- Asset diversification in gold, crypto, and foreign real estate
- Educational planning abroad to reduce exposure to U.S. systems
This strategic decoupling allows children to grow up with more global options, free from FATCA-based restrictions or automatic tax obligations.
Case Study: Multinational Family Rebuilds in Switzerland
A multi-generational family from California with European and Asian ties renounced U.S. citizenships after securing EU passports via ancestry. Their holdings—ranging from vineyards in Italy to tech assets in Singapore—were consolidated under a Liechtenstein foundation. The entire family now operates with full transparency to Swiss authorities, no longer subject to U.S. global income taxation or FBAR scrutiny.
Misconceptions and Realities of Renunciation
There are many myths surrounding U.S. citizenship renunciation. Let’s clarify:
- Myth: “You’ll never be allowed back into the U.S.”
Reality: Most former citizens can re-enter with a visa or visa waiver. - Myth: “You lose Social Security or retirement benefits.”
Reality: Eligible retirees may continue receiving benefits in most countries. - Myth: “It’s illegal or disloyal.”
Reality: Renunciation is a lawful, constitutional right recognized globally. - Myth: “It’s only for tax cheats.”
Reality: Most clients are fully tax compliant and seek renunciation for regulatory relief, mobility, or personal freedom.
The Process Timeline
- Week 1–4: Consultation, second passport selection
- Week 4–12: Investment, documentation, naturalization in chosen country
- Week 12–20: Tax compliance and legal structuring
- Week 20–24: Embassy appointment scheduling
- Week 24–30: Final renunciation and receipt of CLN
Total time: 6 to 9 months for a complete transition.
The Financial Case for Renunciation
Remaining in the U.S. system often costs high-net-worth individuals:
- $50,000+ annually in compliance and legal services
- Exposure to audit, enforcement, and retroactive penalties
- Limited access to global markets
- Forced disclosure of sensitive information
- Conflicted investment strategies due to IRS constraints
By contrast, the cost of exit:
- Citizenship-by-investment: $100,000–$250,000
- Legal structuring: $15,000–$50,000
- Exit tax (if applicable): Varies, but manageable with planning
- Peace of mind: Immeasurable
Case Study: Private Equity Partner Gains Strategic Advantage
A private equity partner managing funds in emerging markets found it increasingly difficult to co-invest alongside non-U.S. partners due to SEC and IRS exposure. Post-renunciation and re-domiciliation in Portugal, he gained unrestricted access to deal flow in Asia, opened new tax-exempt structures in the Caribbean, and negotiated better rates with offshore bankers. His firm now raises capital through a Cayman structure free from U.S. regulatory encumbrance.
Amicus International Consulting: Your Partner in Sovereign Transitions
Renouncing U.S. citizenship is not about running away—it’s about reclaiming control. At Amicus International Consulting, we guide our clients through every phase of this transition:
- Citizenship-by-investment planning
- Global tax strategy and exit tax analysis
- Offshore corporate and trust structuring
- Legal documentation and embassy liaison
- Post-renunciation relocation and banking setup
We serve clients who are clear-eyed about the risks of continued U.S. entanglement and bold enough to forge new identities on their own terms.
Conclusion: Leaving to Live Freely
In 2025, wealth is not measured solely in assets—it is measured in access, security, and privacy. For high-net-worth Americans, U.S. citizenship has become an obstacle to that freedom. Renunciation is not a betrayal of a country; it is an assertion of personal sovereignty in a world where surveillance is the default.
If your wealth spans borders, your citizenship strategy should too.
Contact Information
Phone: +1 (604) 200-5402
Email: [email protected]
Website: www.amicusint.ca
