Brazilian-born, Harvard-educated Facebook co-founder Eduardo Saverin doesn’t know why everyone thinks he’s renouncing his U.S. citizenship because of money. Yes, his move to Singapore will save him at least $67 million on the billions he stands to make when the social network goes public, by Bloomberg’s count, but according to his spokesman, “The calculations and assumptions are not only erroneous, they also further perpetuate the false impression that tax was the reason behind Eduardo’s decision.” Honestly! “His motive had nothing to do with tax and everything to do with his desire to live and work in Singapore.”
The fact that he renounced his citizenship as of April 30 and Facebook’s IPO is scheduled for May 18 must just be a crazy coincidence. He’ll still pay about a $365 million exit tax (although he can defer until he sells his shares), but his savings will only increase if Facebook gains value. And he gets to hang in Singapore, which happens to not have a capital gains tax.
The only potential downside, per Talking Points Memo, is that he might never be allowed back: The U.S. can deny visas to “Former citizens who renounced citizenship to avoid taxation.” Good thing that’s not what Saverin’s doing.