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Old 23-04-2013, 16:54   #31
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The "Foreign Earned Income Exclusion" is nothing more than a cap on how much of your income earned in a foreign country is excluded from being subject to USA Federal taxes. Last I checked it was about $75K but thats an old number. It is not an exclusion from paying USA Fed taxes.
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Old 23-04-2013, 16:55   #32
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Re: How Do You Deal with Residency / Taxes / Mail ?

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Originally Posted by mifi601 View Post
If it's good enough for Liz Taylor and Richard Burton ...
Actually, Burton was a native born Welshman, and Liz Taylor renounced her US citizenzship before marrying him.

I also doubt that many of us earn in any ten years, what they earned in any one year.
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Old 23-04-2013, 22:34   #33
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Re: How Do You Deal with Residency / Taxes / Mail ?

The 6 months is the definition of 'residency' - or so I thought. I am Austrian, so forgive my ignorance! How did Liz and Richard do it - I got the whole thing because I remember hearing about that! (ok he was English, but she wasn't)
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Old 24-04-2013, 06:14   #34
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Re: How Do You Deal with Residency / Taxes / Mail ?

Different countries have different requirements for renouncing your status as a citizen of the country, but you'd better have citizenship in some new country lined up first or you will have a tough time traveling the world without things like a passport and a document of some sort proving the nationality and ownership of your boat. These days there aren't many places a USA citizen can establish residency without investing a lot of money in the country first. Actually, I've been curious about that--what, if any, countries in the world allow just about anyone in who wants to become a citizen?
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Old 24-04-2013, 07:45   #35
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Re: How Do You Deal with Residency / Taxes / Mail ?

I am not talking about giving up your citizenship - that would be insane, IMO. Residency for tax purposes! There's more than just another US state ..
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Old 24-04-2013, 08:07   #36
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Re: How Do You Deal with Residency / Taxes / Mail ?

mifi-
If Burton was English, then you are Hungarian. Austrohungarian Empire, right? all the same?

In my fuzzy Colonial understanding of these things: Wales was conquered by England long ago. It is now a separate country, and while both are part of the British Empire and Britain (4 nations), the Welsh are rather proud of being Welsh, not English. So Burton would have been Welsh and British, but not English.

As to how they did it, that was in another time, another place, another world as far as rules today might apply. How they did it was by hiring a lawyer. And as we say about the price of boats, if you have to ask you can't afford it. It is not unusual for celebrities, like corporations, to "reflag" themselves for tax purposes these days. Burton and Taylor may have just been a little bit ahead of their time on this.
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Old 24-04-2013, 08:38   #37
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Re: How Do You Deal with Residency / Taxes / Mail ?

Quote:
Actually, I've been curious about that--what, if any, countries in the world allow just about anyone in who wants to become a citizen?
Principality of Hutt River Government Home Page
This is a very interesting story.
Well worth the time to read how Hutt became a country.
The Principality of Hutt River (PHR) is an Independent Sovereign State having seceded from Australia on the Twenty First Day of April 1970.

Quote:
Application Fees and Charges as at 11th September 2011

GOVERNMENT FEES/CHARGES

Au$

Application for becoming a Subject of the PHR

E-Mail FIRST!

Application for Passport

E-Mail FIRST

Application for Passport Renewals

50.00

All cards carry photo/signature
and are security coated.

Application for Photo ID Card

100.00

Application for Domestic Driver’s License 1 Year

100.00

Application for Domestic Driver’s License 5 Year

400.00

Application for International Driver’s Permit 1 Year

100.00

TAXATION OFFICE

Au$

Application for Tax File Number

100.00

€ EURO

Annual Corporate Tax for Companies

100.00
Incorporation (Registration) of Company (Renewable Annually)

200
NOTE:.. ALL CHARGES + POST
PAYMENT OPTIONS!
Principality of Hutt River Government
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Old 24-04-2013, 11:08   #38
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Different countries have different requirements for renouncing your status as a citizen of the country, but you'd better have citizenship in some new country lined up first or you will have a tough time traveling the world without things like a passport and a document of some sort proving the nationality and ownership of your boat. These days there aren't many places a USA citizen can establish residency without investing a lot of money in the country first. Actually, I've been curious about that--what, if any, countries in the world allow just about anyone in who wants to become a citizen?
Lots of countries where you can establish legal residency w out making a large investment, but not for "just anyone". You have to meet some basic criteria which vary a bit by country.
For example, background check or at least a police report and proof of a minimum income requirement....

Most Central American countries are pretty straight forward...Belize is a pain of course but the requirements are still not that difficult to meet. Guatemala, and other CA4 countries are relatively easy. Ive been told that Panama is easy too...and they are relaxing their immigration requirements for certain categories of workers.

"Just anyone", provided they have deep pockets, can still buy residency in many places or even a passport, but the prices have gone up substantially in recent years...partially due to USA pressure to stop doing it.

Ive not lived in the USA since 2004. I have legal residency in Guatemala and I still have to deal w USA taxes (Im still a long way from legal retirement age). Residency in foreign country does NOT exempt you from Federal taxes. And if you still claim residency in a USA State they may come after you for taxes too (had to deal w that in the past too).

Renouncing your Citizenship is pretty serious business...especially in this post 9-11 world...imagine what kind of flags that must raise in the HLS system! And do you really think the country where you establish citizenship is going to let you skate on taxes?? ...notice that Tax File fee in the Hutt process...gee...wonder what thats for? "Death and taxes" as the saying goes.


There are effective, legal, and easier ways to reduce your tax bill.
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Old 24-04-2013, 11:57   #39
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Re: How Do You Deal with Residency / Taxes / Mail ?

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Renouncing your Citizenship is pretty serious business...especially in this post 9-11 world...imagine what kind of flags that must raise in the HLS system! And do you really think the country where you establish citizenship is going to let you skate on taxes?? ...notice that Tax File fee in the Hutt process...gee...wonder what thats for? "Death and taxes" as the saying goes.
I've met folks in my travels who told me they were never going back to the USA, but on the other hand they didn't appear to be citizens of any other place--fulltime cruisers I guess. However, it would seem that eventually your passport will expire, and your boat document or registration will come due. Without those two things I don't think you could roam freely as a cruiser.

I have a feeling that if you showed up in a new country with a Hutt River passport you might have some difficulties.
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Old 24-04-2013, 13:01   #40
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I've met folks in my travels who told me they were never going back to the USA, but on the other hand they didn't appear to be citizens of any other place--fulltime cruisers I guess. However, it would seem that eventually your passport will expire, and your boat document or registration will come due. Without those two things I don't think you could roam freely as a cruiser.

I have a feeling that if you showed up in a new country with a Hutt River passport you might have some difficulties.
Never going back (neither am I) and renouncing your citizenship are of course two very different things.

Passports can be renewed at any US Consulate...no need to go back to the USA...and easier and quicker in my experience too.

Travelling internationally w out a passport is practically impossible these days...you could bribe/sneak your way across a border or two but your luck will run out pretty quickly. In some countries having officials check your passport on the street or at routine traffic stops is common...dont have one and your time in their country is over.

And yes country of issue for your passport makes a BIG difference...on a USA passport you can visit almost anywhere in the world w out pre-applying for a visa. I have friends from other countries for whom International travel can be a real hassle due to visa requirements.
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Old 25-04-2013, 04:12   #41
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Re: How Do You Deal with Residency / Taxes / Mail ?

I'm from Australia and I use a mail management/forwarding company Mail to Email | Mail Forwarding Company | Mail Redirection Australia and I believe there are similar companies in the USA. They provide you with a street address or PO box in your country and either upload your mail to the internet to read or forward it when your somewhere long enough to receive it.

Whether or not you decide to keep your residency, its always helpful to have a mailing address and most systems don't seem to account for people living aboard and not always contactable like ourselves.
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Old 25-04-2013, 06:27   #42
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The 6 months is the definition of 'residency' - or so I thought. I am Austrian, so forgive my ignorance! How did Liz and Richard do it - I got the whole thing because I remember hearing about that! (ok he was English, but she wasn't)
I dont know the details of the Burton's tax situation, but I seriously doubt they got away w out paying taxes to any nation.
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