Money

Facebook Co-Founder Eduardo Saverin Moves to Singapore to Avoid U.S. Taxes

| by Michael Allen

Facebook co-founder Eduardo Saverin has renounced his U.S. citizenship ahead of Facebook's initial public offering (IPO), a move that should reduce his capital-gains tax bill.

Saverin was born in Brazil in 1982 and became a U.S. citizen in 1998. His wealthy parents family moved to Miami, Florida, when he was 13, because of kidnapping threats.

Saverin's spokesman Tom Goodman told Bloomberg News: "Eduardo recently found it more practical to become a resident of Singapore, since he plans to live there for an indefinite period of time,"

Saverin helped Mark Zuckerberg start Facebook, at Harvard in 2004, and owns an estimated four percent of Facebook. At the high end of the Facebook IPO prediction, his stake could be worth around 3.84 billion dollars.

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Saverin won't dodge all U.S. taxes. Americans who give up their citizenship still owe an exit tax on the capital gains from their stock holdings.

Singapore does not have a capital gains tax, but does collect tax on income earned in the nation as well as from certain foreign sources.

Tax laws may not be the only reason, he is moving to Singapore. Saverin's many investments include Rachel K, a cosmetics company run by Rachel Kum, a former Miss Universe 2009.