Offshore Tax Strategies
Offshore Tax Strategies
Are you looking for a solution to reduce the amount of money you have to pay in taxes to the United States? Recent adjustments have been made to offshore tax planning. As a result of recent changes to the tax code, most of what was accurate regarding offshore tax planning several years ago is no longer accurate. The Tax Cuts and Jobs Act of 2017 are largely responsible for this.
What steps can you take to reduce the amount of money you owe in taxes? More options exist than you may believe for lawfully avoiding all or nearly all taxation.
There are places where you can live, either temporarily or permanently, and save more of your hard-earned cash without giving up all of your comforts. The challenges involved differ depending on location, but it is possible.
In this post, we will discuss methods by which you can reduce the amount of money you owe in taxes.
What Are the Offshore Tax Strategies?
Renounce your citizenship in the United States
In terms of tax planning for offshore income, this may be the least appealing choice available. The United States levies taxes on its people based on their worldwide income, regardless of whether or not those citizens use any of the country’s resources. During the last decade, an average of roughly 5,000 persons or fewer have given up their citizenship in the United States each year.
Relocate to an American outpost
Are you considering relocating to the U.S. territory of Puerto Rico or one of the other territories? Recently, Puerto Rico has implemented a few acts that grant corporate business rates and individual tax exemptions. This has made the territory more appealing to residents of the United States. Taxpayers can reach tax burdens in the single digits when these tax exemptions are considered.
Working and staying offshore
Is digital nomadism something you do? Around $107k per year can be exempted from U.S. taxes if you work abroad and establish a residency outside the U.S. Each year, hundreds of thousands of people use this offshore tax strategy. The percentage of remote workers is expected to rise from 31% in 2019 to 62% in 2020, making offshore employment more practical than ever before.
Do you find this to be an appealing proposition? Through their “WELCOME STAMP” program, Barbados permits foreign nationals to stay and work in the country without physically being there for up to a year without needing a visa.
Getting tax referral through a foreign corporation
If your company is large enough, referring your taxes to a foreign firm may be the best option. This can be a choice for you if you run a highly profitable firm that can also be moved from place to place and if your company is adaptable. Those looking for alternatives to offshore tax planning should view this as more of a long-term possibility.
Conclusion
Are you a citizen of the United States who has questions about tax planning that involves offshore investments? Find the best professionals in offshore tax strategies to help you in your offshore tax planning.
