US Expats: Citizenship/Tax in Canada, NZ, or Ireland?

[Mister Sir]

1) What's the tax physical presence test for each country I listed

 

[troubled soul]

Canada

• Pros:
  • Relatively easy to immigrate to
  • Similar culture and values to the US
  • High quality of life
  • Strong economy
• Cons:
  • Cold winters in some parts of the country
  • Housing prices can be high
  • Taxes can be high

New Zealand

• Pros:
  • Beautiful scenery
  • Mild climate
  • Welcoming people
  • Strong economy
• Cons:
  • Distance from family and friends in the US
  • Job opportunities can be limited in some areas
  • Housing prices can be high

Ireland

• Pros:
  • English is the official language
  • Relatively easy to immigrate to
  • Strong economy
  • Low taxes
• Cons:
  • Weather can be unpredictable
  • Housing prices can be high
  • Public transportation can be limited in some areas

Factor	Canada	New Zealand	Ireland
Language	English	English	English
Similarity to US culture	High	Medium	Low
Climate	Varies, but generally cold winters	Mild	Mild
Cost of living	High	High	Medium
Taxes	High	Medium	Low
Economy	Strong	Strong	Strong
Job opportunities	Good	Good	Good
Public transportation	Good	Good	Limited

All three country require to spend 183 days or more in country to become a tax resident

 

[Mister Sir]

Azb1 "awesome write up" thanks so much for taking time out of your day to explain

at first I was thinking Canada before your write up then after your write up before your last sentence I was thinking Ireland ....Then after your last sentence that I'm required to spend 183 days or more in any of the 3 countries I said to myself none lol hahaha ....


Azb or any1 else ... Where would you go ? For an English speaker that's not one of the three I mentioned for "overall tax residency" with no or less days physical presence !

 

[troubled soul]

There are many like panama, UAE , Cyprus and many Caribbean country .

I am not an expert, but in my opinion, any country that grants a TRC without requiring a minimum physical presence of 182 days will not be recognized by most financial or Government institute .

 

[Marzio]

Where would you go? For an English speaker that's not one of the three I mentioned for "overall tax residency" with no or less days physical presence

Barbados: no physical presence required

An individual is considered to be ordinarily resident if they have permanent accommodation available for personal use in Barbados and give notice to the Revenue Commissioner of intent to reside in Barbados for a period of at least two consecutive income years.

Barbados - Individual - Residence

Detailed description of individual residence rules in Barbados

taxsummaries.pwc.com

 

[Mister Sir]

Thanks for your response Azb ...I have a major problem with the 182 days requirement....

Thinking of maybe
1) Living sporadically on cruise ship / PT lifestyle....

2) An autonomous zone

3) Saipan and being a US National

4) Something else that's very viable but rarely talked about for whatever reason!

Barbados: no physical presence required

An individual is considered to be ordinarily resident if they have permanent accommodation available for personal use in Barbados and give notice to the Revenue Commissioner of intent to reside in Barbados for a period of at least two consecutive income years.

Barbados - Individual - Residence

Detailed description of individual residence rules in Barbados

taxsummaries.pwc.com

Marzio interesting less talked about middle of the road option besides the usual island countries people talk about aside from St Kitts and Nevis, A and B, BVI, Caymans.... Barbados also has a non-dom option that I didn't know about until now...

 

[coollemur]

For citizenship, Ireland. For tax residency, UAE. Both are environments where English is the main language.

Ireland is the English speaking country that offers a pathway to citizenship yet doesn’t tax you to pieces.

You won’t get citizenship in any of the countries listed if you’re not living there the majority of the time, so might as well just go for the tax residency. UAE is possible with 90 days stay, but no treaty with the US.

Ireland does have a treaty, so may work out better. Have you considered the UK? There are ways to spend less than 182 days and maintain status, but doesn’t lead to citizenship. For tax residency you’d need to spend the time regardless. UK taxes are high but there are ways around it.

 

[scooterguy]

Wouldn't it be easier to just keep your USA tax residency, while you travel around the world? None of the countries listed have lower PIT than the USA, unless you're making over $1M a year, in which case you'll have better options (Monaco, Italy's lump sum, etc.).

 

[Allisgood]

How important is citizenship ? You would really need to spend a lot of time physically there if it’s important.

Ireland: five years, then consecutively 365 days just before applying and then two years + processing.

Canada: the quickest with three years, and then another two years processing.

New Zealand: five years and a year processing time.

For all three you would have to spend like 70-80% per year year in the country and have your center of life there to have a realistic chance to get the citizenship.
You can easily google the exact physical residence requirements.

 

[Mister Sir]

Wouldn't it be easier to just keep your USA tax residency, while you travel around the world? None of the countries listed have lower PIT than the USA, unless you're making over $1M a year, in which case you'll have better options (Monaco, Italy's lump sum, etc.).

Looking at my options right now... Florida, Texas, Puerto Rico, Northern Mariana Islands without a exit tax....

How important is citizenship ? You would really need to spend a lot of time physically there if it’s important.

Ireland: five years, then consecutively 365 days just before applying and then two years + processing.

Canada: the quickest with three years, and then another two years processing.

New Zealand: five years and a year processing time.

For all three you would have to spend like 70-80% per year year in the country and have your center of life there to have a realistic chance to get the citizenship.
You can easily google the exact physical residence requirements.

I think the physical presence requirement and exit tax is making me decide to not proceed to leave the USA...

 

[coollemur]

Looking at my options right now... Florida, Texas, Puerto Rico, Northern Mariana Islands without a exit tax....


I think the physical presence requirement and exit tax is making me decide to not proceed to leave the USA...

If you plan to leave eventually, and like most people, you plan to make more money instead of less, then paying the exit tax sooner rather than later will probably be in your best interest. It will only get worse.

Puerto Rico will give you the most benefits, if you actually want to live there. But moving to Florida or Texas will at least save you some money.