Last november Panama signed a tax treaty with the US. Something to look into if you're considering that location.
Going Offshore
- Thread starter sonicmikeb
- Start date
^^ even i didnt know this as I hadnt been keeping my finger on it lately. The really narrows down some shit now.
The world sucks a little more each day thanks to the U.S.
I had not heard this. I used to work with a guy from Panama who knew all about hiding money in Panama. High rise luxury condos on the beach, tons of them. Drive by them at night and not a single light on. Nobody lives in them; they just buy them to store their cash in a (formerly) safe tax haven.
And what are you going to do with the money once it's outside of the US? Good luck getting it back in. Unless you spend half the year traveling the world what exactly are you trying to accomplish??
a lot of you guys are just looking at this wrong.
By far the most solid setup is to be a dual citizen of just about any country ( doesnt have to be tax haven ) you can get your 2nd citizenship in.
Once you score that, use that for all your travels and setups in other countries.
Lets say you become a citizen of Dominica. I wont go into how to do this, but just pick a country and get your citizenship. Some are easier then others of course, but this all depends on your situation. Next, get your 2nd passport and now start using that for all things you do outside the USA.
For example, you fly to Belize or Costa Rica and setup a company and company bank account under your Dominica identification as a Dominica citizen. Have all transactions pass thru your new Costa Rican company and bank account in Costa Rica. Once your set up and solid, renounce your citizenship to the US and enjoy your new life.
Is it really this easy, no. There are a lot of things I am leaving out and didn't fill in for you, thats your part in doing research and finding out all the little gotcha's. however the basic jist of what I did give you is a nice little Macro view for you.
Who cares about Panama and its new law. There are still multiple ways to do this if your worried about privacy and other things.
By far the most solid setup is to be a dual citizen of just about any country ( doesnt have to be tax haven ) you can get your 2nd citizenship in.
Once you score that, use that for all your travels and setups in other countries.
Lets say you become a citizen of Dominica. I wont go into how to do this, but just pick a country and get your citizenship. Some are easier then others of course, but this all depends on your situation. Next, get your 2nd passport and now start using that for all things you do outside the USA.
For example, you fly to Belize or Costa Rica and setup a company and company bank account under your Dominica identification as a Dominica citizen. Have all transactions pass thru your new Costa Rican company and bank account in Costa Rica. Once your set up and solid, renounce your citizenship to the US and enjoy your new life.
Is it really this easy, no. There are a lot of things I am leaving out and didn't fill in for you, thats your part in doing research and finding out all the little gotcha's. however the basic jist of what I did give you is a nice little Macro view for you.
Who cares about Panama and its new law. There are still multiple ways to do this if your worried about privacy and other things.
One might want to rethink this whole strategy. Sounds much easier to just establish a office in another country and funnel the money.
Renunciation of U.S. Citizenship
D. DUAL NATIONALITY / STATELESSNESS
Persons intending to renounce U.S. citizenship should be aware that, unless they already possess a foreign nationality, they may be rendered stateless and, thus, lack the protection of any government. They may also have difficulty traveling as they may not be entitled to a passport from any country. Even if they were not stateless, they would still be required to obtain a visa to travel to the United States, or show that they are eligible for admission pursuant to the terms of the Visa Waiver Pilot Program (VWPP). If found ineligible for a visa or the VWPP to come to the U.S., a renunciant, under certain circumstances, could be barred from entering the United States. Nonetheless, renunciation of U.S. citizenship may not prevent a foreign country from deporting that individual back to the United States in some non-citizen status.
E. TAX & MILITARY OBLIGATIONS /NO ESCAPE FROM PROSECUTION
Also, persons who wish to renounce U.S. citizenship should also be aware that the fact that a person has renounced U.S. citizenship may have no effect whatsoever on his or her U.S. tax or military service obligations (contact the Internal Revenue Service or U.S. Selective Service for more information). In addition, the act of renouncing U.S. citizenship will not allow persons to avoid possible prosecution for crimes which they may have committed in the United States, or escape the repayment of financial obligations previously incurred in the United States or incurred as United States citizens abroad.
eliquid: If we are getting half way serious here, may I recommend "Emergency - this book will save your life"...
[ame=http://www.amazon.com/Emergency-This-Book-Will-Save/dp/0060898771/ref=sr_1_1?s=books&ie=UTF8&qid=1300990313&sr=1-1]Amazon.com: Emergency: This Book Will Save Your Life (9780060898779): Neil Strauss: Books[/ame]
[ame=http://www.amazon.com/Emergency-This-Book-Will-Save/dp/0060898771/ref=sr_1_1?s=books&ie=UTF8&qid=1300990313&sr=1-1]Amazon.com: Emergency: This Book Will Save Your Life (9780060898779): Neil Strauss: Books[/ame]
How many people are going to leave the US, all their family and friends and renounce their citizenship, just to save some money on taxes? My bet, not many. If it works for you great, but for most people it just makes no sense. Think about it ... how many well known and highly successful US-born entrepreneurs have done this? I can't think of a single one, so maybe it's 0.0001%. Maybe it's not so great an idea for most people? I mean if it was, don't you think Sergey, 50 cent, and Charlie Sheen would have done it already?
This is not meant for anyone on this board or anyone in particular, but in my (extensive) experience, the only people who worry about this offshore shit are those that aren't yet making enough to support their desired lifestyle. These people should focus on providing more value to society and making more money. Giving up your citizenship and living in some shitty 3rd world country is not the answer.
This is not meant for anyone on this board or anyone in particular, but in my (extensive) experience, the only people who worry about this offshore shit are those that aren't yet making enough to support their desired lifestyle. These people should focus on providing more value to society and making more money. Giving up your citizenship and living in some shitty 3rd world country is not the answer.
The owners have not given up their citizenship, but Google, Microsoft, Facebook and many others all "worry about this offshore shit". There is a reason that both Facebook and Google sell ads from their Ireland offices rather than their California offices.
Now I remember you from another tax thread. You were the guy that could not understand why I would be willing to spend part of the year in FL or TX to save myself from a 13.95% state income tax in MN.
Dude, look at what you just wrote.
How many people even need to think about tax avoidance to begin with, MAYBE 2-3% of the population of the US. The same 2-3% that actually fall in the highest tax bracket to begin with.
So by default, not many are eligible to even begin thinking about this, thus not many people would be doing this to save on their taxes. Out of that 2-3% I bet at least 50% have thought of it, with only 10% giving any real consideration to it, and maybe less then 1% actually following thru.
This isn't a strategy for Joe the plumber making 45K a year and 3 kids to feed, but for the 2-3% that are even in the highest tax bracket to begin with.. so yeah not many people can do, let alone make sense to do it.
Besides, this isn't all about taxes.. dont be so simple minded about it. Many of us want to escape the pressures from certain unness. regulations, want privacy in our financial lives, or just want to live a better life outside of the USA without having to pay dues to the USA once we leave.
If you renounce your citizenship are you allowed back in the US at all? Not to work or live there, but just to visit family/vacation/etc?
I wouldnt go so far as renouncing my citizenship...well I dont think so at least (things can change) but getting a second passport and citizenship in a country you like is sound advice that is timeless.
Some country residency programs can be costly and trying but if you feel like converting to Judaism then Israel will hook you up...not joking.
If you're already making a more than comfortable living online then checking out the Five Flag Theory would be worth your while.
My experience has been the complete opposite. Birds of a feather, I guess.
Some country residency programs can be costly and trying but if you feel like converting to Judaism then Israel will hook you up...not joking.
If you're already making a more than comfortable living online then checking out the Five Flag Theory would be worth your while.
My experience has been the complete opposite. Birds of a feather, I guess.
That's fine. So why not just say you think you would be happier living somewhere else? Don't make it about taxes though. Again, I think you'd be hard-pressed to find many successful US-born entrepreneurs or high net worth individuals who have given up their US citizenship and moved abroad just to save on taxes.
Now I remember you from another tax thread. You were the guy that could not understand why I would be willing to spend part of the year in FL or TX to save myself from a 13.95% state income tax in MN.
And I still don't. If you want to live in 2 places for other reasons than that's great, but owning 2 homes 1000 miles apart and moving back and forth just to save 13.95% on your state taxes does NOT make any financial sense, nor is it very practical.
Yeah bro, you're right. And with your $5 blog post offer I think we all have a pretty good idea of which flock you're flying with lol