I think that you get into the most trouble when you try to leave a country has a resident and as a citizen at the same time. Usually that means you've came up with an windfall and are trying to run with the earnings made on it. Uncouple yourself in a slow way, first with residency in a country that won't ask you to report assets abroad and then in an LLC held by an associate that is already off-shore. When you're out, get paid. No fuss.
I wanted to add that the IRS expatriation tax when leaving the U.S. applies to long-term (i.e. 8 years or more) permanent residents. (sorry if this in the video and I missed it). Moreover, if the long term resident non-citizen leaves the U.S. without completing exactly the right paperwork with the INS and the IRS, the departing resident will continue to owe U.S. taxes indefinitely. The IRS may have difficulty collecting such taxes once the resident has left the U.S. However, the bite comes if the former resident (a "covered expatriate" in IRS-speak, see section 2801) provides a bequest or other gift to another U.S. resident. This gift will be subject to a 40% tax, to be paid by the U.S.-resident _recipient_ not the gifter (former resident).
In Germany, if we get a coalition government between the Green Party, the Social Democrats and the Left Party (the former communists) towards the end of this year then citizen based taxation is in the cards.
If the tax isn't due until several months after you've renounced your citizenship and have left the country, how could they force you to actually pay it? Assuming you're OK with never returning?
France exit tax has a cap of 800k euro and only apply to French companies shareholders ( not other Capital Gains nor crypto assets). So exit tax only applies to someone whose net worth is more than 800,000 euro. Please correct me if this assumption is wrong. Thanks.
So I take it that if you got lucky won the lottery, paid your 43% in taxes. It would be a good time to expatriate? Cause your per-Lottery assets aren’t near 2 million right ?
Doesn’t where your treated best include your level of freedom . Love your work Andrew but if you don’t acknowledge the elephant in the room , I and I suspect many others will begin to question your value Please don’t let us down
If you pay the tax on unrealised gains before leaving .... then move to another country... then sell/realise those gains in your new country.... do you have to pay the taxes again on the now realised gains in your new country of residence?
I don't know the answer, but if you were a tax resident in a country (at the time you finally realized the capital gains) that has a tax treaty with the US, they'd probably give you credit for the tax that you had already paid. Of course, the simplest option would be to just go ahead and realize the capital gains at about the same time that you renounce, thereby starting with "a clean slate" in the new country of residence.
@@dlukton Thank you for your reply. In Japan the exit taxi is 15.3%… Which isn’t bad. If you realised gains one would have to pay 20%… Just a little bit more… But yes it might be worth it to start with a clean slate. Thank you very much and good luck to you
what of you are the beneficiary of a trust with an annual payout of 50k, how is that taxed? Also, say you own a real estate portfolio that you don't want to liquidate, you have property management and other systems in place and you want to continue running the business from abroad after you renounce. How would that be handled?
Facing a similar issue. Late fathers estate got 100% BPR. However, I now have to set aside several hundred of 000’s in tax due to share sale. They’ll always find ways to tax.
Small fry here in U.S. If the exit tax doesn't apply till 2 million dollars what would it mean if you had 2 and half miillion net worth. Do you pay the exit tax on the entire two and half million?
“Wet our beak” is the term you hear from gangster shows...very appropriate since we are lorded over by gangsters. The US exit tax is pushing people to Puerto Rico (a potentially even more voracious government if it becomes a State).
unless you can secure one by descendant, citizenship by investment is still top if your legal spouse is a foreigner most countries are cool with your application to gain his/her citizenship.
Nomads Capitalist: "The best time to get out of before you make money." Also Nomad Capitalist: "we only work with entrepreneurs who earn over $500k per year."
Mike o'shea - Generally speaking... No, you would not lose either your pension or SS benefits. However there are exceptions and nuances that can come into play. Best to check directly with the SSA and Pension Plan Admin for something in print. Good luck sir.
