Trading in a Different Country
- Thread starter pcgeek86
- Start date
I'm obviously biased and you have to do what is right for you. If you could leave the US and gain a tax break and just come back whenever you wanted I would say go nuts. You can't do this. You have to renounce your citizenship so it makes it a very tough decision.
But I haven't tried it so people with actual experience will be more enlightening.
pcgeek,
Go to the Sovereign Society, you'll find good info there concerning expats and tax issues for Americans.
As far as giving up citizenship, it's harder to do than one would think because they don't want you to do it. Plus, the fucked up congress passed a law not too long ago that if you succeed in renouncing, you are still liable for income tax for 10 years. How fucked up is that!!
A US passport cuts both ways in the world today...don't be in a hurry to give it up just to save a few dollars. There are plenty of ways to hide money from the IRS but like everything else worthwhile, you're going to have to put some time, effort and money into doing so.
Btw, I'm American and been an expat for almost 15 years.
Go to the Sovereign Society, you'll find good info there concerning expats and tax issues for Americans.
As far as giving up citizenship, it's harder to do than one would think because they don't want you to do it. Plus, the fucked up congress passed a law not too long ago that if you succeed in renouncing, you are still liable for income tax for 10 years. How fucked up is that!!
A US passport cuts both ways in the world today...don't be in a hurry to give it up just to save a few dollars. There are plenty of ways to hide money from the IRS but like everything else worthwhile, you're going to have to put some time, effort and money into doing so.
Btw, I'm American and been an expat for almost 15 years.
</JOKE>The lesson I learned is: You get what you pay for.
Either you pay taxes and you have a decent country with decent prices. Or you pay no taxes and you will get ripped off like crazy with high living costs. A beer in a typical Bahamas or Bermuda bar is US $12. Taxdodgers drive up prices.
Either way, you pay. Either taxes in NZ, US, AU, Western Europe or insane real estate and living costs in tax dodging havens.
If you're making 80k or less you can use the foreign earned income exclusion, which is intended for US expats who are paying taxes in their resident country rather than in the US. If you reside in a country without tax then you pay tax nowhere.
You will have to find a way to turn trading profits into earned income for it to work.
It is my personal belief that most of these threads are just escapist thoughts of getting to have your cake and eat it too. If you live in a country you are using their infrastructure and should pay for it. Search for a thread called "Live on a Boat and Pay No Taxes" for reference.
And it would only be worth the hassle and risk of an elaborate tax avoidance scheme if your income was very high.
Traveler
You will have to find a way to turn trading profits into earned income for it to work.
It is my personal belief that most of these threads are just escapist thoughts of getting to have your cake and eat it too. If you live in a country you are using their infrastructure and should pay for it. Search for a thread called "Live on a Boat and Pay No Taxes" for reference.
And it would only be worth the hassle and risk of an elaborate tax avoidance scheme if your income was very high.
Traveler
North Cyprus is Turkish and is a 2nd rate region at best. Extremely poor, no business development. Nobody in their right mind would live there if they had a choice.
The south is a sovereign country and speaks Green and English. Thanks to the shipping business from the 50s and 60s they were able to establish a services and tourism based industry, based on close ties with the British after WW2.
Since the late 80s and early 90s Russian money has been flowing into the country as the British money found new playgrounds. Go visit Nicosia and Larnaca. You will see Russian "subtitles" on stores and on bulletin boards everywhere.
Summer is hot in Cyprus, yet they have Russian fur coat stores. Go figure.
Cyprus is expensive, Nicosia living expenses (expect for prime real estate of course) prices are not cheaper than London.