11 EXPATRIATING
Arranging secure offshore banking and investments, as we shall
see, are the first steps, and perhaps the only steps a person
may want or need to take. But for those who are interested or
later may become interested in the next phase, let’s look at the concept
of expatriating. Some may want to consider it in anticipation of
potential future national problems that could affect their lives; others
may have personal goals related to offshore benefits that may be augmented
by taking the big leap; and some simply have a desire to retire
overseas. If any of this sounds good, you need to think ahead to more
advanced ideas on going offshore. These strategies require altering
your current lifestyle to maximize the benefits and opportunities, but
when you consider the numbers who are choosing to expatriate, you
might guess that for many, the change is worth the effort.
Becoming an expatriate? Wow. How would you begin? Well, this
course of action will simply pick up where your initial steps left off.
Once your banking and investments are safely offshore, the next
step is to physically move offshore, taking yourself, your family, and
your personal effects, and claiming your new life. This phase may require
considerable time and planning to implement, so if at some
point you determine that this is a real option, then you must look at
the alternatives.
What should you consider doing? Well, you might begin by moving
part or all of your earning capacity offshore. That may be a challenge
depending on your job or the career you are in, but many
Americans today have ideal income-producing activities that are
highly adaptable to going offshore. This process should begin before
permanently leaving the country.
Many jobs can easily be converted into your own business, or you
can develop your talents into a small business. In the United States
today, many people have expanded their entrepreneurial talents and
have done very well. These skills in starting a small business are perfect
for moving your income offshore. With today’s state-of-the-art
communications and computers, there are very few moneymaking activities
that can’t become virtual, or be adapted to operate from virtually
anywhere. You can take your talents and become a consultant in
any field and perform the same services from afar. Maybe your current
employer would be willing to retain your services as a consultantat-
large rather than as an employee so you could perform your job
function from anywhere. This service could be rendered through
your offshore corporation.
In Chapter 24, I discuss starting an offshore business that can be
coupled with e-commerce, the ideal combination for your future career
or business. These activities can easily be conducted using a tax haven
like Belize as your business base, while living virtually anywhere. When
your business is established, your cash flow and personal income can
funnel offshore through a no-tax or low-tax haven like Nevis or Belize,
as an example, and on further into your bank and investment accounts,
securely salted away in a money haven like Switzerland, Liechtenstein,
Austria, or Andorra. This arrangement will minimize your financial exposure
to potential problems in the United States.
You may even wish to purchase a second home in another country
as a vacation home. Should the opportunity or need arise sometime in
the future, you may want it to be your permanent residence, at which
time you can receive tax credits for your housing expenses. You may
want to set up your retirement plan offshore, too, and structure it to
be judgment-free so that your retirement income never reaches the
United States.
At this point, your lifelines to the United States are all but free,
and you are probably feeling a sense of personal achievement and
firm control over your life. There is one exception: You are still a U.S.
taxpayer. You have achieved financial diversification and asset protection,
yes, and possibly a freer and improved lifestyle with lower living
expenses, but you are still obligated to pay income tax on your worldwide
income.
But wait, there is good news! By the sheer act of leaving the
United States, you have set in motion an important tax strategy.