Can You Have No Residency in Any Country ?

[Southern Star]

Talbot, no one is confusing the two - its just that in some countries, residency does impact on tax liability ( as well as eligibility for health care, etc.).

Brad

[Wavewacker]

There is no residency requirement for US citizens, you're free to travel as long as you like, but the last state of residency may have a bone to pick if you do not reestablish residency in another state, depending on your having any assets (including bank accounts) in that state. There are no federal issues.

And you don't need to leave the country not to have a residence, cruising rivers and passing through various states will not make you a resident, but where your taxable assets (personal property) are located may.

It's the problems arising from not having that address that will drive authorities to give you the third degree. So, you're a homeless wondering nomad who has no ties in any community, you don't vote nor do you serve on any jury, well, you're in our jurisdiction now and your bond just went up!

[s/v Beth]

I wonder how hard it is to renounce your US citizenship and gain citizenship in a country like the Bahammas, which have no income tax....
If you are cruising I wonder how much difference it would make.

[TeddyDiver]

Depends what income you have.. Like pension would be taxed in the country of it's origin.. What comes to addresses maybe xxx@hotmail.com will be a ok for the authorities some day, anyway that has more resemblance to permanent residency than constantly changing GPS cordinates..

[GordMay]

Originally Posted by s/v Beth

I wonder how hard it is to renounce your US citizenship and gain citizenship in a country like the Bahammas, which have no income tax....
If you are cruising I wonder how much difference it would make.

None.

Residency, without the right to work, may be gained both annually and permanently, with an adequate real estate investment & proof of "support" (income).
A $250,000.00 investment in real property is necessary to be considered for annual residency, and investments over $500,000.00 for permanent residency.

In order to apply for Bahamian citizenship, persons must be one of the following:
A permanent resident in The Bahamas who has had the legal permanent resident status for 10 years, including the 12 months immediately preceding the date of application, and who has resided in The Bahamas for a minimum of 6 years preceding the 12 months mentioned above ....

➥ Home - Department of Immigration

[conachair]

Originally Posted by Still Hopefull

What happens if you decide not to reside permanently in ANY country.

as others have said it varies from country to country. For individuals domociled in UK it's sort of easy. They've just tightened up the criteria but generally if you cut most ties with the country and stay out most of the time then you can be non resident in the UK for tax purposes. What you do outside they don't care. I was non resident anywhere for 5 years.
You then only pay UK tax on any income arising in the UK. Any other earnings you are supposed to declare in the country where the work was carried out. If you aren't earning then there's probably more to loose and maybe nothing to gain.

Google perpetual tourist or permament traveller.

Changing domocile is another ballgame altogether, much more involved.

[RicknSue]

But as a US citizen , your first 91K of foreign income is tax free, you are required to file still though. This topic is of great interest to us, as I am Canadian, Sue is American, we live in the US now, but take off is less than 5 years away, and we will both have different rules, if I decide to give my green card up...Also, establishing residency in a state with no State Income tax first might be a good idea, perhaps...

[Don1500]

Originally Posted by Southern Star

(and indeed, this has led to some anomalies where people who were born in a hospital in the USA, but then returned to the home country of their parents and lived there for their entire lives, have been deemed to have to pay income tax for their life's earnings in the USA!).

Brad

Sounds right, the good with the bad. You want one, you get the other.

[MarkSF]

"Worthwhile certainly for a UK citizen"

How is it worthwhile for a UK citizen? How will you be saving money?If you leave the UK residency but maintain accounts in the UK you will have to START doing a tax return every year even if you never did before.

"the USA imposes a lot less tax (in percentage terms) on most of their citizens to start off with."

Not really. The US total tax rate is about 35% compared to the UK's 40%. However the UK one includes healthcare. The tax saving will be more than eaten up by personal healthcare spending, which is now the leading cause of bankrupcy in the US. That ignores what companies have to spend on employee healthcare, normally a 20/80% split.

[conachair]

Originally Posted by MarkSF

How is it worthwhile for a UK citizen? If you leave the UK residency but maintain accounts in the UK you will have to START doing a tax return every year even if you never did before.

I can't see what's to gained by being non resident for a uk domocile unless you're earning a decent amount abroad. You're still supposed to do a self assessment tax from even if non resident. I did anyway.

[MarkSF]

Originally Posted by atoll

quite a few wealthy europeons are getting residency in south africa to avoid paying tax in europe,also it's a nice place to live.......

my advice move to europe,work 40 years then retire to south africa.................

My idea of a nice place to live includes not being murdered.

List of countries by intentional homicide rate - Wikipedia, the free encyclopedia

South Africa 32 murders per 100K, UK 1.2

It never ceases to amaze me how Brits will bash their country, regardless of the facts.

And why on earth would you pay Euro taxes for 40 years then leave JUST when you're about to STOP paying tax and reap the benefit of nationalised healthcare and elderly care? If you're going to be old and sick, Europe's the best place to do it in.

[cat man do]

Originally Posted by MarkSF

reap the benefit of nationalised healthcare and elderly care?

You have been to state provided aged care facilities havent you?

I for one aspire to a lot better than that

If you're going to be old and sick, Europe's the best place to do it in.

As long as you can afford it.

[osirissail]

101 -
Citizenship - either birth or naturalization determines your country of citizenship. Basically you cannot travel internationally without a passport which is a document of your citizenship.
- - You could "renounce" your citizenship in a particular country, but if you did not already have citizenship in another country you would be "persona non-grata" legally just about everywhere in the world.
- - Even if you "emmigrate" to another country which is nothing more than applying for "legal permanent residency" you do not lose your original citizenship - unless - you renounce or do something treasonous. Each country has its list of "no-no" deeds.

Residency - other purposes - most common is the right to live in a country beyond the term of a "visitor's visa". In the USA is is called "legal permanent residency - LPR" Most other countries have a similar system whereby if you want to reside in that country for more than a visitor visa period, you need to apply for an "alien resident" status.

Residency - For tax purposes - this is independent of your citizenship and each country and State has requirements that if live in or work in that country or State for XX days (continuously or per year) you have to pay taxes there. Some countries require you to file and pay taxes regardless of where you actually live or have "legal permanent residency" status.

- - I think you would be hard pressed to find any country in the world who would allow a person without a citizenship/passport to visit or live in their country legally. Even in Africa where famine and droughts has decimated one country the people cannot move to a place where the weather and opportunities are better. They are stopped at the "national borders" most times by armies willing to shoot. Even if they are "allowed in" temporarily they are housed in refuge camps with the purpose of shipping them back to their original country.

- - As a world cruiser, you need a citizenship/passport for yourself and State/National documentation for the boat. When you arrive somewhere you are "stamped in" as a tourist/visitor for "xx" days and then you need to renew your visa or leave.

[David_Old_Jersey]

Originally Posted by Still Hopefull

I'm not sure if there would be an advantage for anyone so I don't know if anyone would actually try it.

Plenty do (me is in an Offshore tax haven! - but I be a poor local ).........really depends on how much money you have / income and how (and where) it is generated......and the lifestyle you wish to live. being transient or semi transient does eventually get old...........

[callmecrazy]

Originally Posted by David_Old_Jersey

being transient or semi transient does eventually get old...........

Blasphemy!