by Turky on Thu Dec 08, 2016 6:14 am
We (US citizens) actually have what's called a Foreign Earned Income Exclusion, such that if we're living abroad long-term, we can be exempt from taxes. I suppose the logic is that we're not living in the US or benefiting from any of our tax dollars.
However, the qualifications are fairly rigid, and don't accommodate for short-term visits to other countries. You basically have to be in the foreign country for one full year, with only a limited return to the U.S. (30 days or less). Otherwise, you potentially could be double taxed on your income.
Do people have to "file" for taxes in the U.K. each year? My wife here in China is absolutely baffled by the whole process. At my job here, my taxes are deducted from my pay, and that's that. One of the small perks of living in a country that's still in a transition from third-world to first-world.
But, I have no plans to renounce my citizenship, at least not for a Chinese one. Chinese people need a visa to enter most other countries, especially developed ones. It's quite a hassle. So I'd never downgrade my passport in such a way. I'd have to be offered a citizenship in like, Australia, UK, or the likes of those places to even consider it.