Saverin dumps US citizenship ahead of Facebook IPO

May 15, 2012

(AP) -- Facebook co-founder Eduardo Saverin has renounced his U.S. citizenship, a move expected to save him hundreds of millions of dollars in taxes stemming from the company's impending initial public offering.

The Brazil-born 30-year-old became a U.S. citizen in 1998 but has lived in Singapore since 2009. Giving up his citizenship will allow him to avoid paying taxes on billions of dollars of capital gains when Facebook launches its Friday. Singapore does not have a capital gains tax.

Saverin gave up his citizenship in the of this year, the U.S. Internal Revenue Service said.

"Eduardo recently found it to be more practical to become a resident of Singapore since he plans to live there for an indefinite period of time," Saverin's New York-based spokesman Tom Goodman said Tuesday in a statement.

Goodman said that because Saverin plans to invest in Brazilian and global companies that have strong interests in entering Asian markets, "it made the most sense for him to use Singapore as a home base."

Saverin has a 4 percent stake in Facebook, which has headquarters in Menlo Park, California. Analysts say the company could be worth $100 billion.

Saverin, who moved to the U.S. from Brazil in 1992, founded with in 2004 while the two were students at Harvard University. Saverin gained additional fame when his conflict with Zuckerberg and departure from the company was depicted in the 2010 movie "The Social Network."

Explore further: Amazon launches 3D printing store

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Facebook IPO to bring cash and change

May 15, 2012

Facebook makes its hotly anticipated stock market debut this week in a history-making move promising wealth for insiders and change for users of the online social network.

Recommended for you

Amazon launches 3D printing store

7 hours ago

Amazon announced Monday the launch of an online store for 3D printed items to allow consumers to customize and personalize items like earrings, pendants, dolls and other objects.

Samsung delays Tizen smartphone sales launch

12 hours ago

Samsung Electronics said Monday it would postpone the roll-out of its new smartphone based on Tizen, a home-grown operating system aimed at breaking away from Google's Android system.

Chinese portal Sohu reports $45 million loss

15 hours ago

(AP)—Sohu.com Inc., operator of a popular Chinese Internet portal, said Monday it lost $45 million in the latest quarter while revenue rose 18 percent to $400 million.

User comments : 0