Eduardo Saverin, co-founder of facebook.com along with Mark Zuckerberg, has renounced his American citizenship in favor of living in Singapore.
Having his name first pop up on the April 30th list from the United States Office of the Federal Register, the story was picked up by Bloomsberg News and instantly shot up to the most popular article on almost all news sites.
Renouncing citizenship gives him a huge advantage in American taxes, as he will have a decrease on the 3.84 billion he reportedly is supposed to make once Facebook “goes public” (which is being said to possibly happen as soon as next week). As quoted from Bloomsberg
Renouncing your citizenship well in advance of an IPO is ‘a very smart idea’ from a tax standpoint
This is considered to be an opportunistic move by many business officials. For most people, having something like Facebook’s story happen to them would be a dream come true. From what started as something as simple as a website for Harvard students to goof around on, Zuckerberg and Saverin transformed it into a worldwide enterprise. And while people like billionaire Mark Cuban has said,
the “most patriotic thing you can do” is “bust your ass and get rich. Make a boatload of money. Pay your taxes.”
But Saverin’s story is a little different. Being born in Brazil, he moved to the United States and became a citizen at 16, and has been living in Singapore for the past few years. He has also been a major investor in South American and Asian companies, with his economic footprint being a pretty gigantic one all over the world.
Saverin has made a slick move with this decision. And by all accounts, he has every reason to do it. …It also doesn’t hurt that he can make financial benefits from renouncing his citizenship.