Dutch ditching their US citizenship over tax fears
Some 1,700 ‘accidental' Dutch Americans have applied to give up their US nationality this year, a six-fold rise on three years ago, before a new tax law is implemented next year.
As FATCA is enforced, these Dutch Americans must file a tax return in the United States. If they do not, their bank accounts may be frozen.
Due to the influx, the waiting time at the American consulate increased to up to a year in some cases, Dutch BNR radio reported.
But even if they succeed, they will be charged considerable costs"
BNR bases its claim on figures from tax consultancy Americans Overseas, which says the number of requests for help in ditching American nationality has gone up six fold in three years. Such requests now account for up to 60% of the 3,000 to 5,000 inquiries for help they receive every year, the company said.
FATCA takes effect on January 1st next year. If Dutch-Americans don't get an American tax number before then, their bank accounts may be locked, according to Durlacher. "But even if they succeed, they will be charged considerable costs. They are required to file a tax return for the past five years", he said to the broadcaster. And filing a tax return in the United States is not free. "It is inevitable to hire an American accountant, who can easily charge a few thousand dollars." Dan Durlacher of Americans Overseas told the broadcaster.
The cost of renouncing American nationality, a complicated procedure, is $2,350 and people aiming to do so must also submit five years worth of income tax filings in the US.
So far, an approximate 1,000 ‘accidental' Americans in the Netherlands have been told by their banks that they will lose their accounts unless they comply.
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