Asset Protection Blog – Asset Management – Asset Allocation

div xmlns=”http://www.w3.org/1999/xhtml”pThe United States is one of only two countries that imposes tax on a citizen’s worldwide income, no matter where that citizen lives.  (The other country is, of all places, emEritrea/em.) /ppFor citizens of most high-tax countries, it’s easy to legally avoid the obligation to pay tax on your worldwide income.  You simply relocate to a lower-tax jurisdiction, or one that only taxes local income.  After an extended period—normally 1-2 years—you become “non-resident” for tax purposes.  You no longer have the obligation to pay tax on your worldwide income to the country that issued your passport.  You may, however, still be subject to gift and estate taxes.  /ppBut not the USA.  To permanently disconnect from the obligation to pay U.S. income tax, U.S. citizens must not only leave the United States.  They must also take the radical step of giving up [...]