this post was submitted on 29 Dec 2025
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Mildly Interesting

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[–] sudoshakes@reddthat.com 1 points 10 hours ago (1 children)

You can in fact, simply give up US citizenship.

If own the lottery tomorrow, and needed a “no capital gains taxes” state to be a citizen of, this would be sorta tempting.

Also noteworthy, the IRS doesn’t come after international citizens. Sure they can go after you domestically, but if your accounts are not American accounts and your assets are in other nations, you can just live your life not filing taxes without going back to the US as a citizen.

[–] CmdrShepard49@sh.itjust.works 1 points 4 hours ago* (last edited 3 hours ago)

Obtaining a CLN to demonstrate relinquishment of U.S. citizenship has become a lengthy process with high barriers. The total cost of renouncing U.S. citizenship for a person in France, including the cost of preparing the related tax paperwork, has been reported to be € 10 000 – 20 000 on average.[29] Allison Christians of McGill University and Peter Spiro of Temple University have suggested that the complexity and cost of the process, especially the $2350 State Department fee and the potential penalties for failure to file related tax forms, may constitute a breach of the U.S.' obligation not to impose arbitrary barriers to change of nationality, particularly when applied to accidental Americans who have few genuine links to the United States.

https://en.wikipedia.org/wiki/Relinquishment_of_United_States_nationality

It's not simple at all and while you can just not file taxes, that's no guarantee you'll get away with it much like someone living in the US not filing taxes.

Also lottery winnings is not capital gains income it's gambling income and they typically take the taxes out before paying you your winnings. Even casinos do this if you win over $1500 at once on a machine for example.

Lastly, the premise being put forth here is that someone is using the Caribbean citizenship as a "tax haven" while still living and earning money in the US, not someone leaving the country and never looking back.