Guest post by Mark Nestmann
Recently, I received a message from a client in Mexico. After years of suffering the indignities that US citizens living abroad experience, courtesy of Congress and the IRS, he’s now considering expatriation – giving up his US citizenship and passport.
My client, whom I’ll call “Mike,” asked me about our clients’ experience receiving Social Security payments after expatriation. When I explained that there’s no obligation to be a US citizen to receive Social Security payments in some countries, he was surprised.
“My understanding is that non-US citizens must visit the US at least once monthly in order to receive Social Security,” Mike wrote. “But there’s no way to go back if you don’t have a visitor’s visa or can’t get one.”
When I told Mike that this wasn’t true and that residents of almost every country can receive Social Security benefits regardless of their citizenship, he responded:
“This is huge. Many people where I live in Mexico are afraid of expatriating because they believe they will lose their Social Security.”
Expatriation is an admittedly radical step. But it’s the only way that a US citizen or Green Card holder can permanently disconnect from future tax obligations. And increasingly, it’s the only way that a (former) American can “exist” outside the US, since US citizens living abroad are now routinely denied banking services, mortgages, insurance, and employment.
Continue reading “Expats, Pensions & Taxes – Oh My!”
