As a wise man once said, "Forewarned is forearmed"...and that's never truer than when it comes to taxes. Informing yourself of all the IRS regulations is a sensible idea—and could save you thousands of dollars. While it's important for every American citizen to understand the phraseology of the regulations, if you're thinking of living, working, or investing abroad, it's even more important.
At a G-20 meeting held in September, central bankers, finance ministers, and an assortment of other central planners touted what they hoped would be a new "global standard" of the automatic sharing of financial information. The U.S. has taken the lead with the odious FATCA law...
The global economic crisis popped Spain's real estate bubble. That's why today you could buy a spacious condo in a high-end community on one of the nicest stretches of the Costa del Sol with monthly payments from $483. That's a low sticker price. And, this is a stunning place to visit and spend time. You have dramatic views along the coast. Long winding sandy beaches you can walk for miles. Quirky Gibraltar.
For 15 years, real estate prices in Spain soared. Then in 2007 demand slowed. By the time the worldwide economic crisis rolled through Spain and Europe, the real estate bubble had well and truly popped.
Those of us who are sensitive to tax, financial, and regulatory events, both in the U.S. and offshore, see some disturbing developments toward currency and other financial controls. Taken together, these developments may well signal evacuating before exits are blocked. For example:
If you believe that spreading your political risk beyond one jurisdiction is the single most important thing you can do today, then obtaining a second passport and citizenship in another country is a critical part in achieving your goal. This is because it's a fundamental step toward minimizing the political risk of being subjected to the whims of any single government. The political diversification benefits that come with obtaining a second passport are universal and prudent for anyone in the world to obtain...
Your dreams of living abroad are taking shape. You've traveled enough to know that you are comfortable with other cultures and exotic locations. You even have a few places that you know you want to return to. You are talking with expats and reading everything you can get your eyes on. You want to make sure that your dream turns out just how you envision it.
Are daydreams of finding a new life abroad appearing on your horizon? Do you know what steps you need to take that will ensure you're tax-compliant—or that could even save you thousands of dollars in taxes? With the right steps, here's what can happen for you: Barbara came to us the year before she moved abroad.
Are you ready to move your assets offshore? If yes, you'd better hurry—otherwise someone else might beat you to it. Recently, British serial entrepreneur Richard Branson admitted that he has been living as a de-facto tax exile in the British Virgin Islands for the last seven years. Although he denies tax considerations as a motivation for the move to his private island, Necker (he says it's for his health), he recently sold his British residence to his kids and declared himself a non-resident.
Throughout history it is not surprising that wealthy people increase their wealth because they can profit from secrets that are kept from most ordinary people. They make more money...keep more money...and simply enjoy a higher standard of living than the others.