Its also an incredibly expensive exercise Jay. The IRS conducts an exit audit and will charge you for renouncing citizenship. Better to arrange your life using corporations or trusts.

Good point no one ever mentions people with children. It's always from an individual perspective.

And are you currently an American citizen Jey C.?

*I am not a tax advisor*, but yes... you will likely pay some sort of exit tax for the US. I'm a US citizen who's lived abroad more than 20 years, and I still get to enjoy being taxed as if I never left. That said, there is a $100k allowance, and another $100k or so cost of living allowance (at least where I live). Above that, the US citizen pays the net difference in tax rates if the tax rate is lower. I have fantasies about changing that tax setup, but can't yet bring myself to go there. Bitcoin is taxed as property for US citizens, at the moment, so no tax until you spend it. I would guess that ends at some point with a juicy crypto property tax. Exact disclosures of crypto have been proposed for future US taxes. I bet we'll see that happen soon too.

Yes you can't escape the IRS, even abroad. One of only a handful of countries to tax their citizens while abroad. You can of course escape State and Local Taxes by essentially not having a residence in a State. I have heard talk from California and even New York coming up with an exit tax for people leaving the State (as in perceived to be running from "fair " taxation). So citizenship renunciation is currently the only way out.

Chief Investment Officer

Very true. Puerto Rico also offers tax advantages for US citizens although the situation is quite complicated. I would definitely seek professional advice.

Well that's what will happen to the genuine New Yorkers we go down with the ship. The scenery is already changing with the seasons. Just 20 mins drive around downtown and midtown offer a nice glimpse into the cities future. Another year and the leaves will start falling off the trees and you will see into the woods...

Above $100K yearly income you are better off in Cayman

Yes, you need to have a larger income for it to have real benefits.

Look at Puerto Rico as a prime example. When a big Cat 4/5 hurricane hits your tiny island, the grid/internet/water/food supply chain etc WILL go down. I've lived through many of these storms - and it SUCKS. You'll need to be self-sufficient because the cavalry ain't coming to the rescue. Backup solar + batteries, water filtration system, greenhouse/land for growing food, satellite internet at a minimum. Maybe the tax savings will help pay for it?

Depends on the Island. Some are near self-sufficient in some of lifes basics. The problem is spare parts for equipment.

Harry, you do realize that after 8 years of green card it's the same as if you were a citizen, should you decide to renounce the green card, right?

Renouncing US citizenship is expensive. Not just in terms of the legal work but because the IRS will conduct an exit audit and present you with a tax bill. Its one of the reasons I have resisted becoming a US citizen. Greencards have most of the benefits and without the irrevocability of citizenship. Much of what most want to achieve can be done by simply using companies or trusts to arrange ones business affairs, There is a reason why Senator Romney only paid an effective tax rate of 14% the year before running for President.

Thanks for your input Harry, much appreciated.

Can I have a go at answering this? I think Mexico stands between tax friendly and tax unfriendly. I think taxes are quite high but they are not difficult to arrange ones affairs to avoid. Plus effective tax rates are quite low because enforcement is quite low. But Mexico is also relatively socialist. So the potential liability in future may climb.

Really enjoyed this in focus btw I think your on the money with front running this wave of higher taxes in the developed countries.

The thing about property is that it cannot move - hence "immobilare" in Italian. Right now the UK is very politically resistant to higher property taxes, But higher taxes are inevitable and property has the advantage that it does not run away when you try and tax it. So I would expect property taxes to rise, particularly one high value property. Your best hope is of hiding behind the UK middle class that holds most of its wealth in property. So perhaps better to hold several lower value properties than one ultra high value property going forward. For what little my opinion is worth.

I haven't ever sold a single coin. The update is always keep averaging in.