I have spent considerable time and money, and have traveled the globe looking for the ideal tax situation.
I have spent many thousands on foreign attorneys and accountants, and I have consulted many knowledgeable international investors.
The biggest problem---and it is not insurmountable, is that the U.S> is one of the few countries that taxes both citizens and residents. International tax attorneys have told me the U.S> is the ONLY country that does this, but I have it on good authority that Libya, Eritrea, and , I believe the Phillipines tax both citizens and residents. Assuming Libya and Eritrea aren't on your list of destinations:
So, you're thinking, "I'll just change my citizenship from the US to , say, Holland," where you are taxed on your capital, not on gains.
Guess Again.
If you change your citizenship, and depart the U.S. with more than $500k in assets OR you have paid an average of more than $100k in taxes during the immediately preceeding 5 year period, the United States will continue to tax you AS IF you were a citizen for an additional ten years.
The only possibility of escaping this draconian treatment is to marry a foreign national and then seek citizenship. You can then make application for special "dispensation" from the IRS.
Now, if you want to go so far as to marry a foreign national and change your citizenship, there are some very good tax benefits.
My top choices are Holland and Costa Rica.
Holland assumes you earn 4% on your money and taxes you at the rate of 30%, so the tax rate is 1.2%. That means you pay 1.2% whether you win, lose, or draw. Other taxes, as well as living expenses are high.The climate is a little cold, but the people are hot!!! You can't just move there, though.
You have to start a business and show a profit of $8,000 Euros
to get in under the Dutch American Friendship Treaty (unless you marry a Dutch national). It's a wonderful country and I love visiting. Almost everyone speaks English, and, hey---how can you hate a country that televises two episodes of The Simpsons daily.
The Dutch love Americans, unlike other European countries. I noted that almost all the gang grafitti was in English. Plus, it's a very liberal country with lots of petty thievery and dogshit on the sidewalk. A typical decent home will be $500k US at current exchange rates. Of course, this varies by location. You have to register with the Foreign Police. So, they know where you are at all times.
Costa Rica won't tax you on capital gains. It's a stable democracy with no army. They won't tax you on income earned abroad (for example, dividends and interest). CR is a developing country , prices are not cheap, and taxes are high (13% VAT, and about 50% on a new car). You can gain residency by showing an income of $1,000 / month which must be converted into colones.
Unlike Holland, there are a lot of poor people in CR. A maid can be had for $200 / month.
The CIA has proposed opening its new School of the Americas (the name has been changed to fool the stupid) in Costa Rica, so
its not a place to hide out.
It's a lot easier to get internet in CR than Holland, or at least to get it quickly.
Costa Rica has a very stable temperature--in the mid to high 70's, but it's much hotter on the coasts. Be prepared for rainfalls in excess of 125 inches yearly. It's extremely humid.
Niether country's occupants seem to think air conditioning is necessary, although I disagree, if only for it's dehumidification properties.
I am continuing my worldwide quest and will post up as I visit countries.
