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Facebook Co-Founder Renounces U.S. Citizenship

One of the co-founders of Facebook has renounced his U.S. citizenship, in a move that could save him hundreds of millions of dollars in U.S. taxes.

A spokesman for co-founder Eduardo Saverin said that Saverin had decided it was "more practical to become a resident of Singapore since he plans to live there."

By renouncing his U.S. citizenship, Saverin, 30, will avoid paying capital-gains taxes when Facebook launches its initial public stock offering on May 18.

Singapore does not have a capital-gains tax.

Analysts say the stock offering could generate up to $100 billion.

The Brazilian-born Saverin left Facebook after a troubled relationship with fellow co-founder Mark Zuckerberg.

He is believed to own a 4 percent Facebook stake and have a net worth of about $2 billion.

Based on reporting by AP, AFP, and dpa