LEGALLY avoiding taxes - possible?
- Thread starter axeman
- Start date
Granada was not put on the list of offending nations. Obtaining citizenship in Granada is perfectly legal. They screen the applicants thoroughly to ensure that that no terrorists or criminals are awarded citizenship. If you are a US Citizen, you will not be able to live in the US once you get citizenship in Granada (but you can visit). If you move to a tax haven (you can live in Granada but who would want to) you will encounter some additional expenses to obtain permanent residency. The Cayman Islands has a one time fee of $18,300, a $180,000 investment in the Islands which basically means real estate, and it would probably be wise to pay a local company to do the paperwork ($2,500). Monaco can be done by yourself for a nominal fee and a brokerage account of at least $75,000 but hiring a law firm can make it easier (at least $5,000, maybe double).
Have you guys committed or are about to commit some kind of crime by which your now investigating possible getaway spots whereby you can successfully reap the fullest amount of your rewards by avoiding the American tax system?
Granada, Nicaragua -- Economy - overview: http://www.cia.gov/cia/publications/factbook/geos/nu.html
Nicaragua, one of the hemisphere's poorest countries, faces low per capita income, flagging socio-economic indicators, and huge external debt. Distribution of income is one of the most unequal on the globe. While the country has made progress toward macroeconomic stability over the past few years, a banking crisis and scandal has shaken the economy. Nicaragua will continue to be dependent on international aid and debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Donors have made aid conditional on the openness of government financial operation, poverty alleviation, and human rights. Nicaragua met the conditions for additional debt service relief in December 2000. Growth should move up moderately in 2003 because of increased private investment and exports.
Population below poverty line: 50%
Unemployment rate: 24%
Illicit drugs: transshipment point for cocaine destined for the US and transshipment point for arms-for-drugs dealing.
Oh but its a great place, honestly.
Granada, Nicaragua -- Economy - overview: http://www.cia.gov/cia/publications/factbook/geos/nu.html
Nicaragua, one of the hemisphere's poorest countries, faces low per capita income, flagging socio-economic indicators, and huge external debt. Distribution of income is one of the most unequal on the globe. While the country has made progress toward macroeconomic stability over the past few years, a banking crisis and scandal has shaken the economy. Nicaragua will continue to be dependent on international aid and debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Donors have made aid conditional on the openness of government financial operation, poverty alleviation, and human rights. Nicaragua met the conditions for additional debt service relief in December 2000. Growth should move up moderately in 2003 because of increased private investment and exports.
Population below poverty line: 50%
Unemployment rate: 24%
Illicit drugs: transshipment point for cocaine destined for the US and transshipment point for arms-for-drugs dealing.
Oh but its a great place, honestly.
The point with citizenship in Grenada is that you are not required to live there but get the benefit of no taxes. You can then go live in the Caymans which is a tropical paradise with a per capita GDP of $30,000 which is about the same as the US. Grand Cayman has broadband, a large community of expatriates that work in the financial district, good schools if you have children, no taxes, and Florida is a one hour flight away. 
If you earn a scaleable annual return on capital (as opposed to an income which is size-limited e.g. scalping), and you can deduct losses against previous years profits and/or carry them forward, then you can replicate a tax-free income simply by increasing your size to compensate for the tax level. E.g. if you pay 20% tax, then trade 1.25 times your normal size and you will get the same results as a tax free trader on an after-tax basis. This requires sufficient rolled up profits however, and it can be tricky to optimise position size when you approach marginal tax bands.
Moving abroad gives an $80k expat exemption from tax. You may also be able to use a foreign corporation as a trading vehicle and minimise tax that way, only getting taxed on your withdrawals from the corporation. This allows you to compound tax free - a huge benefit for long-term returns.
Alternatively give up US citizenship entirely and leave the US. Move to a tropical paradise or sophisticated foreign metropolis with better food, weather, wine and women than back home. Pay a pittance for living expenses, with minimal or zero tax on income or investments, and enjoy better trading hours (e.g. in Europe the Bonds open at 2:20pm, stocks at 3:30pm - perfect for lie-ins). Forget about crime or extortionate medical and legal bills. Have fun being able to reach a dozen different countries within a 1000 mile 2 hour plane journey. Smoke pot, drink in public, drive at 100mph, or frolic with a lady of the night without getting slung in jail. Become one of the only 7% of Americans with a passport and travel the world, doing what the f*ck you like without having to worry about some irate cop hassling you, or an FBI goon squad checking up on what you read at the local library.
Moving abroad gives an $80k expat exemption from tax. You may also be able to use a foreign corporation as a trading vehicle and minimise tax that way, only getting taxed on your withdrawals from the corporation. This allows you to compound tax free - a huge benefit for long-term returns.
Alternatively give up US citizenship entirely and leave the US. Move to a tropical paradise or sophisticated foreign metropolis with better food, weather, wine and women than back home. Pay a pittance for living expenses, with minimal or zero tax on income or investments, and enjoy better trading hours (e.g. in Europe the Bonds open at 2:20pm, stocks at 3:30pm - perfect for lie-ins). Forget about crime or extortionate medical and legal bills. Have fun being able to reach a dozen different countries within a 1000 mile 2 hour plane journey. Smoke pot, drink in public, drive at 100mph, or frolic with a lady of the night without getting slung in jail. Become one of the only 7% of Americans with a passport and travel the world, doing what the f*ck you like without having to worry about some irate cop hassling you, or an FBI goon squad checking up on what you read at the local library.
I saw this on tv yesterday, it was called Fantasy Island. And cool, there was a midget!