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Unfortunately for most United States citizens, there's a double taxation system. Which means that even if you're living and working in another country, you're s
by balabaster 8y ago
Unfortunately for most United States citizens, there's a double taxation system. Which means that even if you're living and working in another country, you're still required to report your income and pay taxes in the United States which means that even if the tax bill is lower in the country you live in, you've still gotta pay the difference in taxes to the U.S... unless you're willing to give up your U.S. citizenship in favour of your country of residence, which is a long and arduous process in a lot of cases.
Moving to Germany wouldn't be enough. You'd have to emigrate to Germany, become a German citizen and give up your U.S. passport in order to escape the U.S. tax system.
- stretchwithme 8y agoThe sweetest deal, at least for capital gains, seems to be in Puerto Rico. They're exempt from US federal taxes and there's no tax on capital gains there. Peter Schiff talked about it on Joe Rogan's podcast recently.
- xyzzyz 8y agoThat's correct, but you'd still escape the state income tax, which is really what would make a difference. I specifically said "for California engineers", since for engineers in Washington or Texas, the move would be most likely be detrimental from the tax perspective.