Citizenship Abroad to Avoid Paying Taxes...

[cognito20]

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Everyone who is attacking KKF for wanting to leave the US - shut up. This thread is not about whether or not KKF's beliefs are right. This thread is KKF asking us how he can change his citizenship to another country. So please, spare the 'people like you make me puke comments'.

KKF, I think if you're going to choose a country, the UK would be the best. Same language, modern, well-developed, and no taxes on gambling, whether you're a pro or not.

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Actually, I'd prefer Australia or New Zealand over the UK if I was going to be doing something like this. All the same advantages you mentioned, and the prices and cost of living are much cheaper than in the UK. It is NOT easy to immigrate to Australia though, even if you're married/engaged to an Aussie. Easiest way to get in is to have a skill that they're looking for (computer software engineer, chef, etc. - "professional online poker player" isn't one of them) or bring about $500,000 working capital and agree to set up a business there. Don't know about New Zealand in that regard.

--Scott

[amulet]

if you choose to give up your US citizenship, the lovely fellows at the IRS still expect you to pay taxes for 10 years, regardless of where you live. and they enforce it. sorry. just pay them, it is the best and only real option.

[BradleyT]

Link?

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Link?

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If you renounce U.S. citizenship in order to avoid income tax (which is a rebuttable presumption), and if you have a large enough tax liability over the previous five years (averaged) that you would be avoiding a significant amount of tax ($124,000 in 2004, I believe), then you will be required to fill out forms for the next ten years, and possibly pay some tax.

Here's a link from the IRS for more info. The expatriation tax rules were modified in 2004 to make it more favorable to repatriate your income.

If your making enough to have to pay $100,000 in income taxes hire an attorney. The rich in the US pay very little in taxes due to the their attorneys. If you have no problem living outside the US (as you obviously don't) then that may just be another tool in your arsenal to keep away from taxes.

[TwoNiner]

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In particular, Croatia is on the Medditeranian, is cheap, beautiful, friendly, and is a future candidate for the EU (surely a matter of "when", rather than "if"). I believe croatia is in a process of major renewal with a growing tourist industry, and has great potential for investment right now.

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And the women are hotter than donut grease.

[Zele]

The Happiest Place on Earth (looks like they haven't gotten around to setting up a home page yet.)

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I knew someone who did this to andorra. There were a variety of drawbacks, including only being able to send like 30 days per year for 10 years here, and is supposed to file taxes for 10 years. I know if you just reside offshore you are exempt from taxes on like your first 80k or so.

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Hey. I live offshore now. Do I get the first 80K of my gambling wins tax free? or is this only for money already being taxed by another country?

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I haven't read the responses yet, but I know this: talk to an accountant with experience dealing with US expats in your country.

Edit: After reading all the responses, I believe this even more-- see a professional in Thailand that specializes in US expats. If he has experience with pro gamblers that would be a big help as well. I don't think people should cheat on their taxes, but I also don't think that they should pay more than their share. (For example, you may be able to defer/eliminate taxes on a portion of your income by declaring yourself a pro and contributing to a retirement account. I don't know, I am not a tax pro.) In any case, it will be worth the fee.

Also I agree with the other posters that you are underestimating the value of being a US citizen. Of course it is your decision to make, but if I were you I would take my time and talk to alot of people I trust about it, including your parents. It is a decision that will affect you for the rest of your life, and you are a young guy (I know you must be tired of hearing that, but you are young). If you wait two years to make a decision it won't kill you, and even that amount of time will give you a significantly better perspective to make your decision from. You don't want to make a decision that is good for the 19-year-old you and bad for the 25-to-75-year-old you.

Best of luck.

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The rich in the US pay very little in taxes due to the their attorneys.

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This is soooooo false.

"This is soooooo false."

Actually it's very true. The people that get killed on taxes are the working stiffs that just follow the system. The rich manipulate the system in ways which the rest of us cannot. There are many loopholes that are exploited, a number which are only able to be used if your have the cash on hand to do so. They hire professionals who are experts at doing this.