Facebook's IPO is expected next Friday at a valuation of up to $96 billion.
International tax experts, however, say that Saverin will save a bundle by expatriating ahead of Facebook’s IPO next week. As a foreigner, Saverin will pay taxes to the United States next year only on the presumed value of his shares the day his American citizenship ended, not the presumed higher amount his Facebook holdings will be worth after the IPO.
The timing of his renunciation also has tax implications.
“If his name came out on the list at the end of first quarter, he likely expatriated in the final quarter of last year,” says Michael Pfeifer, a partner at Caplin and Drysdale in Washington, D.C.
With the Bush tax cuts expiring at the end of 2012, the capital-gains tax rate, now 15 percent, is expected to go up. “He probably didn’t want to take the chance of paying the higher rate.”
Kevin Packman, chair of the offshore compliance team at the law firm Holland & Knight in Miami, concurs. “I would be very surprised if this were not related to reducing his tax,” says Packman.
Another spokesman, Tom Goodman, denied suggestions that Saverin had renounced his citizenship for tax purposes.
"We have been working with him for a long time and that subject never came up," Goodman said in a statement to CNBC.
Saverin, 30, was born in Brazil, but moved to the U.S. in 1992 and gained his citizenship in 1998.
Saverin's name was on a list published April 30 by the Internal Revenue Service that documented citizens who chose to renounce their citizenship.
Goodman told CNBC that Saverin renounced his citizenship in September 2011.
"He still has very strong ties to Brazil and is extremely passionate about not only his homeland, but also the U.S.," Goodman 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."
Goodman said Saverin has invested in Asian, U.S. and European companies and plans to invest in companies "that have strong interests in entering the Asian markets."