> AMA
I'm a US citizen but am absolutely tired of dealing with IRS paperwork over the course of several businesses; where would you suggest I obtain citizenship (EU preferred).
I'm a US citizen but am absolutely tired of dealing with IRS paperwork over the course of several businesses; where would you suggest I obtain citizenship (EU preferred).
First, you have to fill out personal taxes every year for foreign income, regardless of whether you live in the US or not. All income globally is treated in the eyes of the IRS as income.
Second, you have to declare FBAR if you hold foreign accounts of over $10,000.
Third, you have to "open your books" for any foreign corporations you are the director (or have ownership) of. Check IRS forms 5471 and 5472.
Yaaa! Land of the free!
Source: American with a business in the UK, lived and worked in the UK. Not a lawyer, or an accountant.
Acquiring a second citizenship will not relieve you from the full boat of U.S. tax laws. No matter where you live, no matter how many other passports you carry, if you have the magic blue passport with the eagle on it, you are a U.S. taxpayer.
https://news.ycombinator.com/item?id=3944339
http://www.guidemesingapore.com/incorporation/introduction/s...
AFAIK, you can always change to another country. However, I can't see the US taking it very lightly that you've denounced your citizenship. In other words, I would assume they would try to make your life a living hell if you wanted anything to do again in the US. (Have no idea, just assuming based on preconceptions about the way the US already treats it's citizens who live outside of it already) Derek seems pretty open, might be worth trying to reach out to him.
http://gyrovague.com/2013/10/30/half-the-donut-why-an-entrep...
Personally, I'm going for Australia though -- there's more to life than low taxes.
http://www.treasury.gov.au/Policy-Topics/Taxation/Pocket-Gui...
It's actually quite a serious problem for the kiwis, because they do the hard yards of bringing immigrants up-to-speed with the local culture (eg English language lessons), only to have them jump the ditch (Tasman sea) to Australia.
"Still, leaving America can have a special tax cost. To exit, you generally must prove 5 years of tax compliance in the U.S. Plus, if you have a net worth greater than $2 million or have average annual net income tax for the 5 previous years of $155,000 or more (that’s tax, not income), you pay an exit tax."
"The theory of the exit tax is that is the last chance the U.S. has of taxing you. It is a capital gain tax as if you sold your property when you left. At least there’s an exemption of $668,000."
If you want to do it without a big pile of capital, the easiest route is probably to get a job offer from a company that will sponsor you as a skilled immigrant, and live/work for enough years to qualify to apply for citizenship (as well as doing whatever else might be required, such as passing a language exam). Sweden is one of the easier countries, with about a 9-year path to citizenship (4 years to permanent residency, plus 5 years to citizenship), no exams. Period can be shortened if you live with a significant other who's a Swedish citizen.
If you want to be self-employed and run your own business, this route is generally much harder, especially if you aren't moving with an already-successful business. Many countries assume by default that "self-employed immigrant" means "doesn't have a job or want to get one" and/or "probably will sell drugs for a living", and treat the category more skeptically. But you can go self-employed once you get permanent residency.