To Renounce or Not?

There are many advantages to having dual citizenship.  With both US and Irish citizenships, my son and I can choose to live and work anywhere in the European Union or the US.  What wonderful possibilities!  With this unique opportunity comes many challenges though.  For instance, if my son chooses not to live and work in the US, he will still be obliged to file annual taxes with the US when he starts earning income abroad.  Unlike most countries, the US doesn't tax based on residence but instead taxes based on citizenship.  So US citizens spread across the world must check in once a year and file taxes with the IRS related to income earned abroad.  

I wanted to educate myself on the process of renouncing US citizenship and sure enough an ad for this exact webinar popped up on my Facebook feed.  The first example introduced at the presentation on Renouncing US Citizenship was that of Boris Johnson.  It turns out that Boris was born in New York City and lived there with his parents until the age of three.  Boris didn't identify as American and lived happily in the UK until the US government came after him for taxes owed after he sold his apartment in London.  Check out  how this all transpired in the following article: https://www.npr.org/sections/thetwo-way/2015/01/22/379056075/london-mayor-boris-johnson-settles-u-s-tax-bill-ahead-of-visit

Fortunately Ireland and the US have a tax treaty so any taxes paid in Ireland count toward your US tax bill.  And Irish tax rates are high so I'm hoping that I will not owe taxes on income earned since returning to Ireland.  I'll be filing my 2024 taxes next year so I'll find out then!  To get back to the process of Renouncing US Citizenship, it is a lengthy and costly process which requires legal assistance and an interview with the US government.  So you need to weigh up the pros and cons.  Every year you'll have a tax preparation bill and possibly owe money.  And if you sell property like poor old Boris, then beware!  And for returning Expats who have married US born citizens, I doubt this is a viable option for their spouses or partners, particularly if they still have family and ties to the US.