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EUROPEAN UNION

How many American citizens are ordered to leave European countries?

Hundreds of Americans citizens have been forced to leave EU and Schengen area countries in recent years for numerous reasons, mostly related to residency rules. Here's a look at the numbers.

Published: 13 February 2023 12:56 CET
Updated: 13 February 2023 16:36 CET
How many American citizens are ordered to leave European countries?
Photo by Christian Lue on Unsplash

A small number of European countries are responsible for most orders to leave the Schengen area issued to American citizens in 2021 and 2022, figures from the EU have revealed.

In 2021, 1,690 US citizens were ordered to leave a Schengen area country.

And up until the end of September 2022, some 1,290 Americans were ordered to leave the EU and Schengen area, according to the latest available data from the EU statistical office Eurostat.

The Netherlands, Norway, Sweden, France, Germany and Belgium issued the vast majority of departure orders towards US citizens.

From the figures, which are communicated to Eurostat by national authorities, it emerges that the Netherlands alone issued 980 leave orders in 2021 and 770 in the first nine months of 2022.

Norway followed with 795 leave orders in 2021 and 105 in 2022 up to September. Then came Sweden, with 240 in 2021 and 135 in the same period of 2022. In comparison, France ordered 100 US citizens to leave in 2021 and 85 in the first nine months of 2022, and Germany 60 in 2021 and 25 in 2022.

Spain reported 10 cases in both years, Italy 5 in 2021 and 15 in 2022. For Austria, the figures were 15 in 2021 and 10 in the first nine months of 2022. Denmark issued 15 and 20 leave orders respectively, and Switzerland 40 and 20 respectively.

Netherlands vs Norway

Not all these people who received the orders, however, had to leave the country in which they were based.

The Dutch immigration agency (IND) said that an order to leave can be issued if a residence application has been “rejected” or “a previously granted residence permit has been withdrawn”.

The person has then an obligation to leave the country and all other countries of the Schengen area within a certain period (usually 4 weeks).

But it is still possible to apply and obtain a residence permit, or even to appeal a negative decision, while staying in the country, the IND said.

The discrepancy between the number of orders given and the number of people who actually then had to leave is reflected in Eurostat figures.

The data shows that the number of returns – US citizens that actually had to leave European countries – is smaller than the number of orders given: 510 in 2021 and 350 in the first nine months of 2022. For the Netherlands, the total was 80 in 2021 and 40 in 2022.

From information on actually number of people returned it emerges that Norway is the country that imposed most US citizens to leave: 635 in 2021 and 60 in the first nine months of 2022. For Sweden, the figure was 180 in 2021 and 85 in 2022 up to September.

Some 15 US citizens were returned from France both in 2021 and in the first nine months of 2022. For Germany the number was 10 and 5, for Denmark 15 and 10, for Italy and Spain zero and 10, for Switzerland zero.

Why are American citizens ordered to leave EU countries?

When it comes to the reasons why Americans are given orders to leave EU and Schengen area countries, well it’s largely for the same issues other non-EU citizens receive the same instructions. 

The Local recently published data about British citizens issued a leave order from Sweden post-Brexit. A spokesperson of the Swedish Migration Agency said these were due to “incomplete [residency] applications, late applications, applications where the applicant did not fulfil the requirement for residence status,” as well as “reasons unknown”.

The website of the French Ministry of Interior specifies that an order to leave can be issued, for instance, if a person has entered France or the Schengen area irregularly and does not have a residence permit, if they have stayed beyond the visa expiry or for more than 90 days in 180, if they have an expired residence permit, or this has been refused or withdrawn, or if they have worked without a work permit.

However, there are several cases in which a person cannot be forced to leave France. These include, among others, being a minor (unless parents are also subject to such a measure), having lived in France for more than 10 years, excluding periods as students, having habitually resided in France since a child, have been – and still be – married to a French citizen for at least 3 years.

An order to leave is not an expulsion, which occurs only when, in addition to be illegally present in the country, the person also represents “a serious threat to public order,” the French Ministry of Interior says. In this case, the expulsion usually leads to a ban from the country.

This article was written in collaboration with the Europe Street news site.

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For members

AMERICANS IN FRANCE

Americans in France: Will my tax situation change if I get French citizenship?

If you're thinking of applying for French citizenship, then you might be curious whether there will be any tax ramifications to becoming a dual national.

Published: 2 May 2024 16:44 CEST
Americans in France: Will my tax situation change if I get French citizenship?

Gaining French citizenship can have plenty of benefits for Americans living in France, from the right to vote in French elections to freedom of movement in the EU – as well as a more intangible sense of belonging in the country you now call home. 

However, Americans living abroad always have to contend with the United States’ system of citizenship-based taxation, which requires US nationals to report their global income to the IRS yearly, however long they have been out of the country.

This may result in making two tax declarations every year if they move to a country – like France – which requires yearly declarations from all residents.

As a result, Americans have to think about possible tax consequences before making decisions to move, invest, or perhaps take on a second nationality.

To help answer the question of whether there are special tax ramifications for French-American dual nationals living in France, The Local spoke with tax expert Jonathan Hadida from HadTax.

Hadida said: “There is really no impact. You still have yearly reporting requirements to both countries, and from the French side you will still continue to give you the benefits of the tax treaty”.

Key items, such as your US-based pension, would continue to be taxed in the US and not France regardless of whether or not you take on French nationality too.

READ MORE: Ask the expert: What Americans in France need to know about 401(k) and other pensions

Unfortunately, many of the limitations Americans in France experience would also remain in place. French investment options, such as the Assurance Vie, would still unwise for dual nationals, as the IRS sees them as PFICs (Passive Foreign Investment Company).

While the Assurance Vie is a great tool for being tax efficient for non-Americans, and can offer alternatives to the regimented, traditional French inheritance process, for Americans living in France (including those with dual nationality) it can lead to lengthy and complicated dealings with the IRS. 

“To the US tax authorities, you are still American first, second, third and fourth place. They don’t really care that you are also French,” Hadida said.

“The only real change to your tax situation would be giving up your American citizenship, but keeping your US citizenship in addition to French citizenship does not really change anything.”

What happens tax-wise if I renounce my American citizenship?

Renouncing US citizenship is not as simple as scheduling an appointment at a US embassy or consulate, paying the applicable fee, and declaring that one does not want to be American.

There are several factors to consider, and depending on your situation, in the long-run it might be more advantageous to hold onto your US citizenship to continue benefiting from certain parts of the US-France dual taxation treaty (PDF).

For others, keeping US citizenship might be onerous with its yearly reporting requirements, as well as the difficulty it can pose with putting money into French investment vehicles due to citizenship-based taxation and FATCA (US legislation that passed in 2010 to track money laundering). 

While renouncing your American citizenship undoubtedly pushes you further out of the reach of the IRS, you should consider that you might owe an exit tax, if you are deemed a ‘covered expatriate’. Usually, this is only required of high-net worth individuals (worth more than $2 million).

According to the US expat tax site 1040 Abroad, this also includes people who failed to comply with tax obligations in the five years preceding their renouncement, as well as people who had “an average annual net income tax liability exceeding a specified threshold” (as of 2022, this number was set to $178,000).

People renouncing US citizenship can also be subject to a special inheritance tax on gifts made to US citizens or residents, following their renunciation. 

READ MORE: How to renounce American citizenship in France – and why you might want to

You should also think about your US-based investments.

“You would no longer benefit from the tax treaty in the same way if you give up your US citizenship. For example, Article 24 of the treaty covers investment income, making it taxable in the US and giving you a deemed credit in France.

You would lose this benefit if you renounce, and this could make a big difference if the taxation level is lower in the US, as it often is with dividends or capital gains.

“Your IRA and pension plans will continue to be taxed in the US because this is based on where the pension is earned, not nationality, but you might have to start filing a non-resident tax return to the US after renouncing citizenship,” Hadida said.

The tax expert said that renouncing citizenship should be decided on a case by case basis.

“Every situation is different, and for some people it might not make sense to give up certain benefits from the US-France tax treaty. You should speak with a financial advisor before deciding”, he said.

READ MORE: Divorce, stress and fines: How citizenship-based taxation affects Americans in France

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