Hey all ... So, I need some advice ... What if you wanted to obtain dual citizenship in another country, and had the capacity to set up a large, mega $$ company their as well (not me, personally, but this Friend of mine ... he's, well, how do I say this ... a bit, devilish? : ] ) Now, very large international players have been telling him Panama ... Others say Swiss is good too (for more than just their neutrality/banking sector) ... Although Panama is looking pretty good given the fact no country would ever shut down the canal... not to mention her neighbors flanking the south are becoming more and more 'diversified' and would like a bit more respect from other world powers Criteria: - Accepts dual citizenship in under 1-2 years (remember ... he plans on basing a new, financially sound/secure company there ... if that helps) - Is NOT connected with his country of origin (just take a guess), so that he doesn't have to worry about magic finger slips that wipe out entire bank accounts ... or those damn NOSY birds that keep peaking through his window anytime he says anything, calls anyone, or sends emails ... - Is still a good place to live, with friendly people, good economy and growth/potential ... He enjoys community, sharing, trust and wishes there was more where he currently resides (Sigh) - Would not be devastated when what we all know is going to happen in the next couple years happens... if not sooner I think you guys get my drift ... But, honestly, has anybody had any experience with a situation like this where they could enlighten someone that is not as well versed in this matter? My Friend ... he may be taking a trip out there as soon as next week or so to look around, spend some time, start paperwork, etc ... Any and all advice is sincerely appreciative ... To that, I leave you with a simple concept ... “Happiness cannot be traveled to, owned, earned, worn or consumed. Happiness is the spiritual experience of living every minute with love, grace, and gratitude.”
- DW - Friend
Have him get a subscription to Sovereign Man Confidential. I am in no way related to them or do I get money or any sort of kickback from them.
Each person and family is unique in their circumstance. At SMC they have done great research on exactly this question and you can quickly look @ the + and - of each country for your particular situation.
This is a life commitment, and you can match YOUR priorities to the country priorities. e.g. a person in their 20's wanting to set up a business is in a distinctly different circumstance than someone newly retired. Singapore has mandatory 2 yr military participation for all young males (possible concern for folks with sons). etc.
Taxes and country tax reciprocity vary widely. Length for residency requirements vary widely. $$$ to establish residency vary widely.
Good luck, wishing you great success in finding your own, best, "happy place".
Thank you for your help ... I, personally, am subscribed to International Man (are they related? They look similar) and I find those articles very interesting, and have even refrerred a few over to him. In terms of a life commitment, this is not a total move he is planning ... Rather, simply allowing his business, which is based internationally anyway and none of the transactions involve the US whatsoever or even a US citizen, to be properly regulated and taxed (not at 60% or something utterly rediculous) as well as providing a 2nd option as to a place to go if things aren't going as 'constitutional and MORALLY correct' here in the US. So really, a lot of time will be spent between both places essentially, so dual citizenship is the preference. Some of his family will remain here, while some of his family will be helping him with the business setup and initial move and will most likely obtain a dual citizenship as well. Whether they remain there is to be determined, but none of them want to relinquish their US citizenship in a complete form. In terms of finding MY 'happy place', I think you mis-read the quote ... Happiness is NOT a place you can travel to, rather it is an acceptance of who you are, wherever you go. The ability to love yourself and the ability to love others with the same love/care that you afford yourself is paramount. This is coming from a man (me) who left @ 18, moved half way around the world, alone, to Kaua'i (Hawai'i) on a 1 way ticket and $400 in my pocket and managed to work, live, and travel around this world for 4 years (using HI as a base) while I figuring out this whole 'growing up' and 'life' stuff (which still leaves oh so much to be discovered about this world and life!) ... I am 27 now and graduating in the spring, with honors (woohoo! ... I never actually expected that to happen lol) with a Civil and Environmental Engineering degree from a great school here up in New England! (The traveling and world/life experience helped me figure out why I should even go to school ... that sure as hell helped me maintain that 'happiness' at 4 AM after working on a SINGLE problem for hours straight lol) Thanks again for your input and I will definately take a more in depth look at Sovereign Man! -Friend
Puerto Rico. It is a commonwealth country of The USA and you don't have to pay full taxes twice. There is about a 4% tax to pay (please check the actual figures yourself as it relates appropriately), plus you don't have to go through the losses incurred by giving up a US passport, if you ever decided to do so.
This does not get you a dual passport but it may be a less expensive way of relocating for you Yanks.
Though the Commonwealth government has its own tax laws, Puerto Ricans are also required to pay many kinds of U.S. federal taxes, not including the federal personal income tax, but only under certain circumstances. In 2009, Puerto Rico paid $3.742 billion into the US Treasury. Residents of Puerto Rico pay into Social Security, and are thus eligible for Social Security benefits upon retirement. However, they are excluded from the Supplemental Security Income (SSI), and the island actually receives a small fraction of the Medicaid funding it would receive if it were a U.S. state. Also, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system.
At the macroeconomic level Puerto Rico has been experiencing a recession for 7 consecutive years, starting in 2006 after a series of negative cash flows and the expiration of the section 936 that applied to Puerto Rico of the U.S. Internal Revenue Code. This section was critical for the economy as it established tax exemptions for U.S. corporations that settled in Puerto Rico and allowed its subsidiaries operating in the island to send their earnings to the parent corporation at any time, without paying federal tax on corporate income. Puerto Rico has, however, surprisingly been able to maintain a relatively low inflation in the past decade while maintaining a purchasing power parity per capita higher than 80% of the rest of the world
In general, United States citizens and resident aliens who are bona fide residents of Puerto Rico during the entire tax year, which for most individuals is January 1 to December 31, are only required to file a U.S. federal income tax return if they have income sources outside of Puerto Rico or if they are employees of the U.S. government. Bona fide residents of Puerto Rico generally do not report income received from sources within Puerto Rico on their U.S. income tax return. However, they should report all income received from sources outside Puerto Rico on their U.S. income tax return. Residents of Puerto Rico who are employed by the government of the United States or who are members of the armed forces of the United States also should report all income received for their services to the government of the United States on their U. S. income tax return.
United States citizens or resident aliens who are not bona fide residents of Puerto Rico during the entire tax year are required to report all income from whatever source derived on their U.S. income tax return. However, a U.S. citizen who changes residence from Puerto Rico to the United States and who was a bona fide resident of Puerto Rico at least two years before changing residence can exclude from U.S. taxable income the Puerto Rican source income received while residing in Puerto Rico during the taxable year of such change of residence.
Puerto Rico is working to become one of the most serious threats to the U.S.'s taxation empire in the entire world, all because U.S. citizens per an old taxation agreement become exempt from U.S. income taxes if they become residents of the territory. Under Puerto Rico's remarkable new tax regime, U.S. citizens who become residents of Puerto Rico can potentially find themselves paying zero capital gains taxes, zero dividend taxes, zero property taxes on their new corporate residence, and a minimal 4% flat business tax on income from their business, the only catch being you have to open your business in the commonwealth and not service Puerto Ricans.
The setup is perfect for hedge fund managers, as well as software businesses and internet entrepreneurs.
The Puerto Rican government, which has slowly been abandoning its socialists ways which led it to bankruptcy, is actively perusing free-market reforms and is reportedly seeking to become "an alternative to Singapore."
Singapore is one of the most free-market tax havens in the world, but citizens of the country are not allowed to have dual citizenship, if they're U.S. citizens living there they must pay U.S. income taxes in full, and if they choose to renounce their U.S. citizenship to live there full-time they get looted like Facebook's Eduardo Saverin by the U.S.'s draconian exit tax. Puerto Rico on the other hand is completely open to U.S. citizens, and actually can exempt them from U.S. income taxes if they become residents. That means there is no need for U.S. citizens looking to lower their tax bill to give up their U.S. citizenship in order to escape the U.S.'s previously inescapable global income tax, nor to avoid the U.S.'s exit tax.
Feel free to send ME the sub money you would have sent to sovereignman !!!
I accept all forms of coin
Thx for posting the info, looks like I have some reading for the weekend. Do you have any idea on how one would move one's precious(phyzz) to PR?
Buy a yacht and make the hand rails and taps out of metals ? Just kidding....maybe.....................I don't have that info but maybe someone else can help. I assume you could always just cash in where you are and re-buy when you get there ? Just an off the cuff idea. I would love to know myself just because............
I remember hearing somewhere that Austria is a decent place to live (perhaps). I also remember hearing that after hanging onto your stack for a year, there are no capital gains taxes applied.
Will have to check that one.
Capital gains tax
There is no specific capital gains tax in Austria. Capital gains and losses are generally treated as ordinary business income (or loss) and are taxed at standard corporate income tax rates. Special rules apply to capital gains and losses on property sold by legal entities other than limited companies. A new tax regime introduced in 2012 treats the sale of a property regardless of the holding period as subject to income tax at a reduced rate of 25%. Special rules apply to the calculation of the tax basis for long holding periods and deductions are quite restricted. Exemptions apply to privately owned and used residencies only. Another exemption from capital gain taxation applies for real estate newly built at the seller’s own risk unless rented out during the last 10 years before sale. A new tax regime has been introduced from 2011 for financial instruments held by private persons. Basically, capital gains are taxed at the lower of 25% and half the regular rate, regardless of the holding period.
N.B. Any government reserves the right (no doubt) to change the rules any damned time they feel like it !!! - lol
Look up in Black's law dictionary
Citizen, Resident, Native, Alien, and for shits and giggles look up the legal definition of a Republic and Usufruct (if you don't know what usufruct is, then you is f#cked)..LOL)
I am a Native-born,Resident Alien of Canada, and I was born here.
You need to know what you are:-)
Silver66 Rage against the dying of the light
Many considerations should come into play. Having been to Puerto Rico many times it does have some terrific attributes; it also has this
to some this is an issue, to others not.
Two major sources of income is the manufacture of rum and pharmaceuticals. I would review the status of the mkt including US tax subsidies to see how dependent PR is on US "assistance" for the health of the economy. Would also review status and potential ramifications of the Rum manufacturer moving to Virgin Islands.
Taxes were low for a reason. The future?
Just ideas to consider.
If you generate your income offshore, the most ingenious scheme I've ever heard of was developed by a client of mine- renounce your U.S. citizenship, become a citizen of the Canary Islands, and live in Canada. Apparently Canada has a resident alien program that allows you to live up to 9 months out of the year there without paying income taxes, and the Canary Islands do not collect income taxes. This plan was vetted by an experienced tax attorney (although he is a total prick) and it checks out.
The only catch is you have to travel at least 90 days each year outside Canada. And you are no longer a U.S citizen.
I don't think there is a sound way to avoid U.S. taxes if you remain a U.S. citizen, unless you keep all of your assets in a foreign corporation, and there are dangers in doing so. Primarily, the fact that all of your assets are not insulated from liability if something goes wrong.