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Eduardo Saverin, one of the creators of Facebook, renounced his American citizenship, according to the Internal Revenue Service.
“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” said his spokesman Tom Goodman.
Unlike the U.S., Singapore does not have a capital gains tax.
Saverin, born in Brazil but raised in Singapore, began proceedings to renounce citizenship in September. He moved to the U.S. in 1992 and became a citizen six years later. However, he has been living in Singapore since 2009.
His decision could lead to a reduction of his tax bill. The giant social media site he helped create is now valued at $96 billion. Saverin’s stake in it is two percent. He was not listed among those owning 5% or more of the site in its pre-IPO regulatory filings.
Saverin helped Mark Zuckerberg create Facebook while attending Harvard University.
Saverin’s stake in the company is about 2 percent, according to The Wall Street Journal. They were initially 34 percent but have decreased since he sold some of his shares.
Despite that, he still stands to make billions of dollars because the site itself is expected to raise as much as $14 billion in its IPO.
Saverin’s conflicts with Zuckerberg became famous with the movie The Social Network (2010).