The Puerto Rico tax deal is the inverse of the Foreign Earned Income Exclusion. Here’s why: With a Puerto Rico tax contract you can live in the US, your first $100,000 or so in salary is taxable, with rest deferred at 4%. If you live offshore and qualify for the FEIE, your first $101,300 is
You’ve heard the adage of investing when there’s blood in the streets… to buy when all hell is breaking loose and the market is at bottom. Well, now is your opportunity for some offshore tax planning while there’s blood in the streets. An offshore tax planning opportunity that will cut your corporate rate to 4%!
The international money lending license came into its own in 2010 when the US began pushing out payday and other lenders of last resort. A number of offshore jurisdictions welcomed them with open arms and the battle with American regulators was on. By 2012, many of these lenders moved from offshore licenses to those issued
There’s no worse feeling in the world than coming home to a letter from the IRS telling you that you are being audited … until you get notice of an offshore IRS audit. No matter how organized you are, you should fear the great IRS. If you have unreported accounts or become the subject of
Did you form an offshore company but the business didn’t go as planned? Do you need to close an offshore company? There are two ways to go about this. To close an offshore company that’s never done any business and has not yet opened a bank account, “allow it to die a natural death.” This
If you’re an American living, working, or investing in Panama, the Panama tax system is your friend. The Panama tax code may allow you to live tax free in Panama and, possibly, in the United States. This Panama Tax Review will explain how to reduce your worldwide tax bill. Before getting in to specifics, it’s
The Foreign Earned Income Exclusion for 2015 breaks the six figure mark! The Foreign Earned Income Exclusion for 2015 is $100,800, up from $99,200 in 2014. The FEIE is the best way to minimize your US taxes as an Expat and the most important tool in your tax kit.
The republic of Chile is one of the most business friendly nations on earth… as tax and business efficient as it is long. Chile’s focus on high-tech start-ups has brought a wealth of talent and business to this nation that is vying to be the Singapore of Latin America. Chile is one of the longest
If you’re working abroad for a foreign company, watch out for the foreign pension tax trap. If you get caught, you might be paying double tax on your retirement income… once when earned by the U.S. and once at distribution in your country of residence. First, let me say that this is not meant as
If you’re going to invest in one or two rentals with your IRA, then you won’t have a tax problem. You can operate these properties through a U.S. LLC (if domestic) or an offshore LLC (if abroad) and net profits will flow back in to your retirement account tax free. If you buy in to
Chile is now one of the best countries in South and Central America for tech startups. As you will see in this article, it is blowing past my Panama… at least in attracting tech start-ups. Termed “The Chilecon Valley,” Santiago, Chile has become the entrepreneurial hub of Latin America by focusing on talent… and backing
The new ObamaCare tax, called the Net Investment Income Tax, or NIIT, hits U.S. residents and expats alike with a 38% levy on most forms of investment income. If your taxable income in 2014 was $200,000 (single) or $250,000 (joint), the ObamaCare tax is coming your way. These rates are fixed and will not increase
What the heck is an offshore tax inversion and why should I care? The inversion has been all over the news and was even called “un-American” by our President today (July 25, 2014). Here is everything the small to medium sized business owner needs to know about the tax inversion. Where a large corporation is
If you’re new to the world of offshore, then this article on offshore basics is for you. Thinking about starting a business abroad? Want to move you or your assets out of the United States? Offshore basics will tell you how… and what’s legal and what’s not for an American abroad. Many of the articles
If you’re operating a business outside of the United States, your offshore business tax reporting obligations can be daunting. Failure to comply can result in significant interest and penalties, the loss of your business, and even the loss of your freedom. Here is a brief description of the most common offshore business tax reporting obligations.
If you are doing business offshore, you need to understand the IRS Controlled Foreign Corporation rules. It is these tax laws that allow you to retain earnings from an active business offshore. These same rules force you to pay tax on passive income. If you have a non-U.S. partner, then avoiding the Controlled Foreign Corporation
Today I’m taking time out from my offshore beat to warn you about the CTR. An IRS Currency Transaction Report is a form filed by U.S. banks and casinos each time you make a deposit or withdrawal of $10,000 or more. It is filed in secret, without your knowledge, you don’t receive a copy, and
Want to know which is the Best Offshore Company Jurisdiction for your business or your assets? Are you considering living, working or investing abroad? Then this offshore company guide is a must read. Please note that, when I refer to the Best Offshore Company Jurisdiction, I mean the best jurisdiction for your offshore structure. An
The Mini Offshore Captive Insurance Company (sometimes referred to as a pure offshore captive) is a powerful and unique way to cut both your business and estate taxes while moving your assets out of the reach of future business and personal creditors. If you are operating a business with $500,000 to $1.2m per year in
Which is better, an offshore corporation or offshore LLC? Does an offshore corporation provide more protection than an offshore LLC? What are the benefits of an offshore LLC compared to the benefits of an offshore corporation? These are the questions I get every day, and the answer is not as simple as you might think.