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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Author: OrmontUS   😊 😞
Number: of 343 
Subject: Re: OT: Tax-free living: Monaco or Beaches?
Date: 02/04/25 2:36 PM
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No. of Recommendations: 7
If you live in the US and want to not pay tax, you can do this by obtaining a passport (citizenship) from another country (such as through marriage) and then renounce your US citizenship.

- Manlobbi

Actually what happens when you do this, is that all of your tax-deferred retirement accounts immediately distribute their balances and they are immediately taxed by the US government as income.

Puerto Rico used to offer (maybe still does) a deal for high net-worth US citizens that move there (and get a bill passed in the PR legislature) the ability to avoid paying US taxes for ten years on local income. A number of years ago we went through the process and then did a test-run of living there for a month. At the end I understood why many Puerto Ricans move to NYC, but few from NYC move to Puerto Rico - and we walked away from the deal. (Subsequently, the island was hit by a hurricane and we considered ourselves lucky to have dodged that bullet regardless of the potential tax savings).

Jeff
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This community has written 340 posts about Living Abroad. The article-length ones it recommended most:
Welcome! · 12 recs · 2024
USA to Portugal (Sabbatical) · 8 recs · 2024
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