If “capital gains not taxed” didn’t leap off the page at you, you are a poor slob who must actually have w-2 income? Keep up the good work while the wealthy sleep soundly on the tax code they bought and wrote.
The article is referring to Caribbean taxes not US taxes. If you have US citizenship, you have to pay taxes to the federal government regardless of where you live, work, or earn your money, and don’t lose your US citizenship just because you become a citizen of another country.
If own the lottery tomorrow, and needed a “no capital gains taxes” state to be a citizen of, this would be sorta tempting.
Also noteworthy, the IRS doesn’t come after international citizens. Sure they can go after you domestically, but if your accounts are not American accounts and your assets are in other nations, you can just live your life not filing taxes without going back to the US as a citizen.
Obtaining a CLN to demonstrate relinquishment of U.S. citizenship has become a lengthy process with high barriers. The total cost of renouncing U.S. citizenship for a person in France, including the cost of preparing the related tax paperwork, has been reported to be € 10 000 – 20 000 on average.[29] Allison Christians of McGill University and Peter Spiro of Temple University have suggested that the complexity and cost of the process, especially the $2350 State Department fee and the potential penalties for failure to file related tax forms, may constitute a breach of the U.S.’ obligation not to impose arbitrary barriers to change of nationality, particularly when applied to accidental Americans who have few genuine links to the United States.
It’s not simple at all and while you can just not file taxes, that’s no guarantee you’ll get away with it much like someone living in the US not filing taxes.
Also lottery winnings is not capital gains income it’s gambling income and they typically take the taxes out before paying you your winnings. Even casinos do this if you win over $1500 at once on a machine for example.
Lastly, the premise being put forth here is that someone is using the Caribbean citizenship as a “tax haven” while still living and earning money in the US, not someone leaving the country and never looking back.
If “capital gains not taxed” didn’t leap off the page at you, you are a poor slob who must actually have w-2 income? Keep up the good work while the wealthy sleep soundly on the tax code they bought and wrote.
The article is referring to Caribbean taxes not US taxes. If you have US citizenship, you have to pay taxes to the federal government regardless of where you live, work, or earn your money, and don’t lose your US citizenship just because you become a citizen of another country.
You can in fact, simply give up US citizenship.
If own the lottery tomorrow, and needed a “no capital gains taxes” state to be a citizen of, this would be sorta tempting.
Also noteworthy, the IRS doesn’t come after international citizens. Sure they can go after you domestically, but if your accounts are not American accounts and your assets are in other nations, you can just live your life not filing taxes without going back to the US as a citizen.
https://en.wikipedia.org/wiki/Relinquishment_of_United_States_nationality
It’s not simple at all and while you can just not file taxes, that’s no guarantee you’ll get away with it much like someone living in the US not filing taxes.
Also lottery winnings is not capital gains income it’s gambling income and they typically take the taxes out before paying you your winnings. Even casinos do this if you win over $1500 at once on a machine for example.
Lastly, the premise being put forth here is that someone is using the Caribbean citizenship as a “tax haven” while still living and earning money in the US, not someone leaving the country and never looking back.
Wouldn’t that only qualify against a 186 day rule?