Can I give up my US citizenship from Saudi?
Yes. If you give up your US citizenship in Saudi Arabia, you must comply with both immigration and tax procedures, including paying a fee and ensuring five years of US tax returns are filed.
Additionally, you may be subject to an exit tax if your net worth exceeds US$2,000,000 at the time of renunciation.
Renunciation involves two main aspects: the legal and immigration procedures, and the tax obligations. For US citizens in Saudi Arabia, the journey begins at the US consulate or embassy, where individuals express their intent to renounce their citizenship. This step comes with a fee of US$2,350.
How do I deal with my taxes before renunciation?
The US tax system requires individuals planning to renounce US citizenship to comply with their tax obligations. This includes filing US tax returns for the five years preceding the year of renunciation and the year of renunciation itself. The latter is known as a dual-status tax return, reflecting the individual’s status as a US person for part of the year and a non-resident alien thereafter.
Exit Tax
A critical aspect of renouncing US citizenship is the potential imposition of an exit tax. This tax applies to individuals whose net worth exceeds US$2,000,000 at the time of renunciation or whose average annual net US tax liability over the five years preceding renunciation exceeds certain thresholds.
Thinking about renouncing your US citizenship? Get advice from a tax expert to know the ins and outs of renunciation.
What if I don’t have a social security number?
For US citizens in Saudi Arabia without a Social Security number, a special relief program allows for the filing of tax returns without an SSN when giving up citizenship, provided certain criteria are met.
Aya Takriti, an IRS Enrolled Agent with 11 years of expat tax experience, specializes in US tax preparation, tax planning and tax advice for US citizens and Green Card holders living and working in the Middle East. *Schedule a consultation with Aya today.
*30-minutes US$247.
