Eduardo Saverin, a billionaire co-founder of Facebook, made headlines this year when he renounced his U.S. citizenship and became a Singapore citizen. Then New York socialite Denise Rich attracted considerable attention after she gave up her citizenship in favor of Austria. Both were seen as motivated by the potential of saving a fortune in taxes.

Whether you are outraged by their moves or applaud Saverin and Rich's savvy, the reality is that the decision to give up American citizenship is a fast-growing trend. While the totals are still relatively low, the number of Americans who relinquished their citizenship last year (about 1,800) increased almost eightfold since 2008, according to the Internal Revenue Service.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access