Description

In this third episode of the Mobility Standard, we had the pleasure of hosting David Lesperance, an internationally recognized expert on what he himself calls “backup plans”, by which he means comprehensive structures aimed at protecting your person, your family, and your assets from anything from black swan events and natural disasters to avaricious politicians and criminals. 

We asked David about a range of his favorite subjects including:

• US expatriations
  What’s really going on with Americans renouncing their citizenships? Some say the numbers falling, others insist it’s at all-time highs but that the real numbers are obscured. What’s the reality?
• Wealth taxes
  What are the latest developments around wealth taxes around the world? How are the rich protecting themselves against quickly rising tax burdens by investing in alternative citizenships and residencies?
• The bulletproof backup plan
  As globalization increasingly goes into reverse and a more regionalized, geopolitically less stable world emerges in the wake of COVID, what does a bullet-proof Backup plan look like? If you want to keep being able to enjoy global freedom to travel, trade, and settle, what flags do you need to plant and where? 
• Citizenship-based taxation during the remote-work era
  At the very same time that the highest earners have discovered they can work remotely, the states and countries in which they live have decided to raise taxes drastically. A lot of them will be asking, “why shouldn’t I move to a lower-tax jurisdiction”. What will the political reflex in rich countries be? Is it a proliferation of citizenship-based taxation?

Below, you’ll find an excerpt of some of the more salient moments of the episode:

US missions “refusing to schedule” renunciation appointments

Questioned as to the true levels of Americans giving up their citizenship, David Lesperance offered a detailed account of the disparity between the number of Americans trying to renounce, the number that is able to, and the number of renunciations that are reported.

“You have a huge backlog,” commented Lesperance. “In fact, the US embassy in Bern is reporting they have 400 people on their waiting list to schedule appointments for renunciation. And you have to remember: That’s just one of 307 US missions abroad.”

The reported numbers don’t reflect current demand, explains Lesperance, first because there’s a 12-18 month lag between the renunciation and the publishing date of that event, and second because many US diplomatic missions downright decline to take renunciation appointments, ostensibly out of public health concerns.

The press, he adds, were quick to attribute record renunciations in late 2016 to Trump’s election, and the even greater numbers in early 2020 to COVID, neither of which were related events.

“COVID wasn’t even a twinkle in a bat’s eye at the time those [renunciations] that were only now getting reported actually took place.”

See also:

• Yes, American Citizens Can and Will Leave to Avoid Wealth Taxes
• Record Numbers of Americans Renouncing Citizenships Has Nothing to Do With The Pandemic