US Citizenship or Dominica?

[Hank Moody]

I have a hard decision to make right now and I need you guy's help.

If you are third world country citizen and you were given a choice between USA Citizenship / Tax Free Country (eg. Dominica or your other favourite carribiean country) which one would you choose and why?

 

[Allisgood]

What third world country are we talking about ? Extra words

 

[Hank Moody]

What third world country are we talking about ? Extra words

Any third world country.

 

[JohnnyDoe]

Any third world country.

Caribbean countries are “third world” countries ‍

 

[Sols]

It depends on what you want in life.

US citizenship means you can live and work in the US. For those who believe in the American dream, that's worth all the taxes and other drawbacks that come with a US passport.

Dominican citizenship might be better than your third world citizenship for travel and it can open doors to certain tax free solutions. But it doesn't necessarily make a big difference in terms of where you can live and work (aside from Dominica and maybe CARICOM).

 

[Hank Moody]

It depends on what you want in life.

US citizenship means you can live and work in the US. For those who believe in the American dream, that's worth all the taxes and other drawbacks that come with a US passport.

Dominican citizenship might be better than your third world citizenship for travel and it can open doors to certain tax free solutions. But it doesn't necessarily make a big difference in terms of where you can live and work (aside from Dominica and maybe CARICOM).

The thing is I absolutely hate and dread tax s**t. First you are already losing ~35% of your income + you have to worry about "Oh this fucking action would result in tax? Can I breathe? Would it be a taxable event?" + you have to figure out what the f**k you are supposed to pay for + you have to spend time doing all that shitty paperwork. Its hard enough for an entrepreneur to create a successful business and he got to deal with tax s**t too? How is anyone still not a slave in this world?

And on the other hand I see stability and power of US passport.

It feels like whatever I choose or not choose I will end up regretting my decision.

Caribbean countries are “third world” countries ‍

Okay its a third world country but still it offers 0 Tax if you are staying the hell out of their borders and making money outside and keeping outside business outside. No? It got this benefit isnt it? Otherwise why would anyone invest 100k?

 

[Sols]

The thing is I absolutely hate and dread tax s**t. First you are already losing ~35% of your income + you have to worry about "Oh this fucking action would result in tax? Can I breathe? Would it be a taxable event?" + you have to figure out what the f**k you are supposed to pay for + you have to spend time doing all that shitty paperwork. Its hard enough for an entrepreneur to create a successful business and he got to deal with tax s**t too? How is anyone still not a slave in this world?

35% is if you earn a salary. If you run a business, you should structure your income as capital gains which are taxed far lower.

 

[Hank Moody]

35% is if you earn a salary. If you run a business, you should structure your income as capital gains which are taxed far lower.

Still crazy paperwork. And how low it could get?

 

[Golden Fleece]

Still crazy paperwork. And how low it could get?

I have written several posts on this topic. If you are a U.S. citizen and can work remotely (offshore), your effective tax rate can go from 40% to 50% in high tax states (between federal and state income taxes, plus FICA taxes) to about 10% to 15% -- by forming a CFC controlled by a U.S. C corp. and by living offshore. Just hire a qualified accountant to do your taxes.

If you are a poverty-stricken third world immigrant, then the U.S. offers immense opportunity -- which is why they all seek to flee to the U.S. If you are trying to build a business, then the U.S. is still great. But if you are already very wealthy, then voluntarily subjecting yourself to the U.S. tax scheme is just plain crazy.

 

[Marie Manila]

I'd never go for US citizenship.
The whole offshore world would become very very difficult for you.
If you are lucky, you can still get bank accounts in Russia and Belarus. I don't know any other country where banks accept US citizens.

 

[Sols]

If you are lucky, you can still get bank accounts in Russia and Belarus. I don't know any other country where banks accept US citizens.

The FATCA scare is over. Today, very few banks would reject an otherwise good applicant just because of US citizenship (I'm sure there are some noteworthy exception, though). Compliance has become easy and straight forward. In most cases, Americans are no longer discriminated and in most cases subject to the same (ever increasing) requirements on non-resident banking clients.

 

[Hank Moody]

I have written several posts on this topic. If you are a U.S. citizen and can work remotely (offshore), your effective tax rate can go from 40% to 50% in high tax states (between federal and state income taxes, plus FICA taxes) to about 10% to 15% -- by forming a CFC controlled by a U.S. C corp. and by living offshore. Just hire a qualified accountant to do your taxes.

If you are a poverty-stricken third world immigrant, then the U.S. offers immense opportunity -- which is why they all seek to flee to the U.S. If you are trying to build a business, then the U.S. is still great. But if you are already very wealthy, then voluntarily subjecting yourself to the U.S. tax scheme is just plain crazy.

"which is why they all seek to flee to the U.S" ------ This is exactly why I was even asking these questions here because everyone is running towards US and Im avoiding US so would that make me a stupid person or am I blind to some huge sensible logic? Any regrets will kill me from inside later and no one wants that to happen to themselves.

What if you are from a poverty-stricken third world country and you have a few hundred thousand dollars and you dont know whether you would be earning your future money onine or offline?

If you are lucky, you can still get bank accounts in Russia and Belarus. I don't know any other country where banks accept US citizens.

Whoa! Was it this difficult for US citizens to open account in other countries? I remember bankers asking me if Im US citizen or have US Green Card.

 

[Larin]

This is exactly why I was even asking these questions here because everyone is running towards US and Im avoiding US so would that make me a stupid person or am I blind to some huge sensible logic? Any regrets will kill me from inside later and no one wants that to happen to themselves.

Personally, I would never move to the US. I do not like the culture, or what it has to offer. However, if I had a choice to work with anyone on a business venture, I would pick an American in a heartbeat. Their work ethic is second to none. I would also consider raising money in the US, as their investors are much more knowledge and much easier to work with than, say Europeans. So, it remains in many ways a land of opportunity in the modern world. If you'd like to take a shot and try to become a multi-millionaire, and don't mind putting up with huge wealth inequality, no safety net and basically winner-gets all mentality, I would strongly consider going there.

What if you are from a poverty-stricken third world country and you have a few hundred thousand dollars and you dont know whether you would be earning your future money onine or offline?

I would not be picking a country if that were my situation, based on taxes. You can move to any country on the planet and hire a good accountant who will optimise your taxes and chances are your effective tax rate will end up in the 20-40% range. However, your base salary could vary enormously depending on where you work. The same financial analyst working for exactly the same bank could easily have a salary thats 50% more in New York, than Paris, or Frankfurt.

Whoa! Was it this difficult for US citizens to open account in other countries? I remember bankers asking me if Im US citizen or have US Green Card.

Some banks will not want to accept US citizens/Green card holders as customers due to FACTA. US expects that every foreign bank report every bank account held by an American to IRS. Some banks chose not to get involved in this. From my experience, its a bit random which banks will and will not work with Americans. We are talking about Retail banking here, so for them its a simple cost calculation (# of Americans opening bank accounts vs. cost of compliance and potential liabilities). But, it is something to consider, along with the fact that you will always have to report your worldwide income to IRS and in some cases pay tax in the US even if you choose to emigrate in the future. Thats not a liability I would want to have, or subject my children to in the future.

 

[Hank Moody]

Personally, I would never move to the US. I do not like the culture, or what it has to offer. However, if I had a choice to work with anyone on a business venture, I would pick an American in a heartbeat. Their work ethic is second to none. I would also consider raising money in the US, as their investors are much more knowledge and much easier to work with than, say Europeans. So, it remains in many ways a land of opportunity in the modern world. If you'd like to take a shot and try to become a multi-millionaire, and don't mind putting up with huge wealth inequality, no safety net and basically winner-gets all mentality, I would strongly consider going there.


I would not be picking a country if that were my situation, based on taxes. You can move to any country on the planet and hire a good accountant who will optimise your taxes and chances are your effective tax rate will end up in the 20-40% range. However, your base salary could vary enormously depending on where you work. The same financial analyst working for exactly the same bank could easily have a salary thats 50% more in New York, than Paris, or Frankfurt.

Some banks will not want to accept US citizens/Green card holders as customers due to FACTA. US expects that every foreign bank report every bank account held by an American to IRS. Some banks chose not to get involved in this. From my experience, its a bit random which banks will and will not work with Americans. We are talking about Retail banking here, so for them its a simple cost calculation (# of Americans opening bank accounts vs. cost of compliance and potential liabilities). But, it is something to consider, along with the fact that you will always have to report your worldwide income to IRS and in some cases pay tax in the US even if you choose to emigrate in the future. Thats not a liability I would want to have, or subject my children to in the future.

Im confused with one thing, I got a few hundred thousand dollars and I dont know in which category do I fall rich or poor? And like I said I dont know for sure where my future income will be coming from (online or offline)