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Originally Posted by Kimo
so then it would indeed make sense for someone who made 100% of their money online, and lived, and operated their business from costa rica, or some other country where income from foreign sources is not taxxed to renounce their US citizenship, assuming they had no reason to go back to the US? its just a matter of is the tax savings worth to you personally giving up your US citizenship...
other then avoiding taxes i dont know why anyone would want to renounce their citizenship, other then that chess champion guy who renounced it to avoid being extradited to the us for some silly crime...
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OK.. First thing is really "clear the background" - ie.. you need to have your personal stuff like citizenship sorted first, - prime reason being that you are totally clear of all taxes, claims and laws for your old country of citizenship.
Once you are clear (it's unfortunate the US is not like any other western country re this stuff), you can live wherever you like, form whatever corps in whatever jurisdiction you like (choose these for obvious benefits) and depending where you choose to live or operate a business (these can be different) - done correctly, you will never see a tax form again. Yes, taxation is a major element - compound what you pay in taxes over 10 years and it's a lump :-) There are several other money-type advantages in that other kinds of taxation may not exist either.
The rest is really a matter of opinion and personal preferences... chances are you will have a better quality lifestyle than in most "civilized countries".
Only me, you get used the the tax benefit stuff - I'd be thinking of the lifestyle more than any taxes - and also there is much more freedom to arrange whatever as you may prefer without legal obstacles.
Apart from that - yes, would not think of any reason for changing citizenship - unless there was some other background reasons such as DWB mentioned.