How US Citizens Can Pay ZERO Taxes Legally! US Citizen Living Abroad Taxes Explained
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- čas přidán 28. 08. 2024
- How US Citizens Living Abroad can pay Zero Taxes Legally.
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In this video we talk about taxes for us citizens and us citizens living abroad. The US tax system is the most oppressive in the world, taxing citizens no matter where they live or where their income comes from. As a US citizen, you pay tax on all your worldwide income as long as you remain a US citizen. In this video we discuss the best ways to pay zero taxes and reduce your taxes legally as a US citizen.
Who Is Rafael Cintron?
Rafael Cintron is a 7-figure entrepreneur who has built multiple businesses from scratch. He now travels the World and lives a global lifestyle finding the best places to do business, pay less taxes, and live free. In this channel he teaches you how to lower your taxes, get a second citizenship and move abroad to create more freedom in your life.
If you want to learn more about Rafael and his strategies book a free call with him here: calendly.com/r...
In this channel we talk about:
tax friendly countries, citizenship by investment, avoid taxes, pay zero taxes, fatca, us citizens taxes, renounce us citizenship, us citizen abroad, us citizen living abroad taxes, citizenship based taxation, cost of us citizenship, renounce us citizenship abroad, us citizens taxes, us taxes, american abroad, american taxes, crypto taxes, cryptocurrency taxes, capital gains taxes.
Other related people in this topic:
Nomad capitalist, robert kiyosaki, offshore citizen, Evan Edinger
DISCLAIMER: This video is not tax and/or financial advice. Any information or advice I give is purely based on my own experience and research. I am not a tax professional and/or lawyer and/or accountant so I am not liable for any steps you take to lower your taxes. I'm not a financial advisor nor do I pretend to be. Always do your own research.
Thank you for watching this Taxes for US citizens video!
If you want to learn more about how to lower your taxes legally and move abroad subscribe to the channel here: czcams.com/channels/49PyeVkVY6godW0pF6H8Pg.html
If I move to the Cayman Islands and remove my US citizenship how to get a passport that lets me go back to the US?
I don’t know about the rest of you but it seems life in the US is designed to keep you here. This isn’t good. At all. Good luck everyone.
@360recapstechnically other places on earth isn't as free as the us. Free market is important not just avoiding taxes
It's cult behavior tbh
It is. It quite literally is. There is recorded evidence of this.
Yeah, because we’re still slaves why do you think we pay taxes?
Dual citizenship is a plus. And if you get a social insurance number from that other country use that. For the first year you have to file with the US, after that you don’t. This is how it works in Bermuda if you have dual citizenship
So, the moral of the story is:
renounce your citizenship before you becomes a millionaire
Great video and info! Thank you 😁
I think I’m ready to give up on my citizenship. Do you have a update video on your process? Thanks ahead of time for content.
That's a bad decision, it can be very hard to accomplish, can come with alot of potential issues if your new citizenship is nullified and you have nothing to fall back on legally, and even if it causes you issues after giving it up, you can still be fucked over later if the US decides or declares you are a citizen again because of a later declaration, a situation which has happened before, it turns out there are millions of technical US citizens by specific conditions of your birth that you can have little to no knowledge of. Even just having a US birth location causes certain countries to refuse your passport when attempting to fly into the us since the US refuses US citizens to enter using non US passports and will assume you are a current citizen even if you have revoked your US citizenship previously, and the foreign customs don't know how to handle that headache; It's niche stuff that only affects a small amount of people, but it does occasionally happen.
I am looking to move to the Philippines to live with my woman and her large family. They want 30% income taxes no matter where you get your income from. How can I avoid these ridiculous taxes? And with the FEIE, you still have to pay social security of 15.3%. That is not exempt on my 1099 income that I earn from the US. HELP!
Upside, love the clips, packed with useful information.
Thank you for taking the time to explain this to us. Im a US CITIZEN living in Quebec, Canada and I easily told today by someone that um supposed to pay us taxes i haven’t claim since 2022. I will then claim 0
Is it ok to just claim through the IRS website?
It’s not a song they play it’s “call for prayers”.
What if you have a retirement pension? Is that also subject to the &109k limit? Is the $109k per person, so it would be double for a couple?
You said foreign earned income exclusion is if you don't spend more than 30 days in the usa per year. Actually, the rule is spending at least 330 days outside the US. So it's actually up to 35 days in this usa.
Used this when I was younger … hope to use it again when a little older!
The US foreign tax credit allows you to offset taxes paid to other countries. This doesn’t negate taxes all together.
I was born in the US however hold European citizenship. I’ve been living outside of the US for years now with my family. My question is does the US government come after folks like myself? My only ties to the US are some real estate investments and my social security entitlement which I will apply for when the time comes
Yes. Look it up. I’d get this sorted asap you can apply for the amnesty but would need to do tax returns for the last 3 years.
Excellent video, thank you. First time I’ve ever commented on a CZcams video. I’m a US citizen but also have a UK and Irish passport. Considering renouncing US citizenship as I haven’t lived there for 30 years and have no plans ever to return and live there again. As far as capital gains - am incorrect that if you sell your main home residence and buy another within a certain time period, there is no capital gains to pay? Appreciate your videos - have subscribed.
Thank you so much for your comment! Correct, you can be exempt from capital gains if that's your primary residence, Biden wants to tighten the regulations on that and could even remove the 1031 exchange in the coming years but for now yes. Appreciate your subscribe!
@@WealthyExpat What is your nationality American?
@@sylvialupehernandez9154 he is of Puertorican nationality and US citizen (commonwealth territory of the US).
This is very well explained. Thanks.
So what types of businesses do you open up? What did you open up in UAE?
Great video. I didn't find the contact for your international taxes accountant though
If I'm American working in the USA 180 days and I depart America and my passport shows I'm out of the country of America for 185 days living abroad............
Does The United States IRS give me a tax break / tax reduction since I was outside of America for 185 days??
I already know the state of New York gives a state tax reduction but does the IRS government also offer a tax reduction???
Your opinion is greatly appreciated.
Thank You
The 180 days I live in America I earn a taxed income of $60,000. The 185 days I live abroad I earn no income. Does the IRS offer me a tax reduction because of this circumstance? New York State tax cuts my tax debt 50% because I was out of the country for 183 days.
Man your channel is gold! Thank you so much I appreciate this!
Thank you for watching !!
What if you put your crypto in a trust, would that take it out of your name and avoid the capital gain, turning it into a distribution?
What about the 15% self-empowerment that does not get excluded by the Foreign Earned Income Credit and is due on worldwide earned income?
I dont understand. If you move your company to a Dubai free zone, wouldn't your personal income still be subject to US tax?
@10:32 why not use the “BBD” strategy (“Buy Borrow Die”)?
I am an US retiree living in 3 countries less than 1/2 year in each country. Technically speaking i am not a full time resident in either country. Does this situation allows me not to pay taxes in any country?
Great video
The “tax holiday” in Portugal is not zero tax. It’s 10% and it has many conditions.
I do FEIE from Taiwan and I filed capital gains from my Robinhood account and I saw I didn’t have to pay any tax because the gains amount was still below the standard deduction.
Is that correct? Capital gains tax only if it’s more than the SD?
You forgot the EXIT tax. You cannot escape the USA tax system unless you have never worked in the US
great info again! thank you for sharing all this
does this apply to green card holder(permanent residence)?
As another option, can you gift your crypto without capital gains?
I came from a 3rd world country and I’m so glad I became a U.S. citizen and it is a blessing and privilege for life even if I have to pay taxes on capital gain or earned income tax for more than $109 thousand U.S. dollars a year even if I become a millionaire in another country the United States will still always a great and a unique country to be proud to belong to and carry its citizenship and give it to my children in the future. Other countries don’t tax their rich citizen who are living abroad but they tax their average earner inside their country because they don’t have the tools and the power to make banks in other countries report to them otherwise they will do the same tax law so at this point the United States has a fair tax system and on top of that it is a beautiful country and it offers fast and high quality services to its citizens both in the U.S. and overseas
Belize isn't an island.
Thanks for such a great video. Totally understand the concept of creating a corporation if you’re making more than $109K. How does that work when you earn your income from a job with a W2, which goes under my name and social security number and not a company?
I work for a corporate but one time I didn't understand why we star making this corporate loses or crap good material and sell it for cheap. I found out this corporate was own by investors in Dubai and this loses was pushing investors to give up a percent of they profits and after years push this investors to sell corporate for cheap. in others words this investors got fraud. I not longer work there but even after reporting all they illegal activities and water and airpollution to Sacramento nothing happen I guess money talks and corrupt system. I guess I'm lucky to be alive
I believe you use the Foreign Earned Income exclusion. You will still need to pay 7.65% employment tax and state taxes if applicable
How would this work if you work remotely for a US based company but you are moving to live in a country like Colombia?
If your still a US citizen you owe taxes, if you renounce citizenship you only owe Columbia taxes
Did you figure this out?
What about a dual citizen (British born with a UK passport and a US passport from living there and applying for citizenship). Can they move to the UAE and not pay US taxes?
I am US green card holder living and paying taxes in UK for the last 3 years. I have not filed US tax return. Do i have the option to file 3 years tax return now along with FBAR? Can i avoid FBAR penalty because it says even if it's non-willing, its still $10K penalty? please help as i didnt know about the Expat tax and FBAR disclosure requirements.
I think the FBAR penalty is when you’ve filed an FBAR in the past but missed X amount of years
Super info! You once mentioned that to maintain your Dubai business you have to visit once every six months. If you visit mid year & one week falls in the 1st 6 months & the 2nd week falls in the next six months, will that keep you qualified. I am Canadian. Thank you!
No that would not qualify, the rule is that you need to come to Dubai at least once EVERY 6 months. Example: You come January 15th, then you come May 15th, and you come again September 15th and so on...
@@WealthyExpat Thank you!
Great info ! ... But Can you explain if W2 Employee(for US Employer) can reduce tax living abroad
People judge them there they not bad at all they are very people friendly
Thank you.
What if I am US citizen I work in the USA but I live outside the us how would that work what could I do ?
Do you live in the United States defined in chapter 26 of the US code?
You mean District of Columbia?
I was born in the US and am a US citizen, but I also have Irish citizenship and the option to also get a UK passport. Currently I am doing freelance work in the US, but have been considering a move to Ireland or England as I have nothing tying me down here. So am I understanding this correctly: if I move outside of the country & continue to earn money doing freelance work, I won’t be taxed in the US as long as I earn under $109,000 a year?
The rules governing who needs to file a tax return or not apply to all US citizens, or potential US citizens. If you would be required to file taxes, basically if you have any kind of income above a certain threshold which is far below the poverty line anyways, as opposed to being homeless and not having any income, you need to file. So if you do have a job, you need to file, but you don't need to claim that income on the filling since it's non taxable income if it's under $109k. If you don' reside in the US anymore and won't for decades or ever plan to, nobody is gonna harass you if you stop filling, but questions might be raised if you return to the US and get a job and start filling again, so you might as well just file your taxes while away. It's free but very hard to file by yourself but you can use tax filling websites to submit the forms for you online. Since you won't have any income to file in the first place you won't need to apply for any credits beyond or even including the standard deduction so you might as well just file it yourself since it cannot get any more straight forward. I don't know if foreign marriages are recognized for tax purposes but if they are andxshe has never been a US citizen prior, it is unlikely she would be expected to file until she resides in the US so you should be able to file as "married filling jointly" and then ignore her legal grey zone responsibility to file her half since it's not certain if she should be obligated to file in the first place. None of this should be considered "legal advice," ask a lawyer if you got one, lmao
Why didn’t you mention the “EXPAT SELF EMPLOYMENT SS TAX” of 15% ?
your site link is not wotking, Are you in dubai still ?
Where are Most Americans living abroad?
Man Said "Songs" Astigfirullah
Sooo what about that 21% us fedearal tax?
How to i actually avoid that 21% as a us citizen?
For example i set up a dubai based/registeref company, but as a us citizen, am i still subjected to 21% on world wide income?
If yes that is there a way to avoid that. Without renouncing us citizen ship?
What happens to Social Security, Government Pension and Veteran's Benefits if I renounce? Do they all go away? I'm receiving all 3 now. Thanks
You still receive your Social Security outside the United States. I’m not sure about government, pension and veterans benefits, but probably you need to check on that as for Medicare you cannot receive that outside the US but usually it’s a lot cheaper outside the United States to do anything medical. Do you research and compare.
Liked and subbed. In Qatar I have to pay a little
I'm not a resident or american citizen. If my Dubai company open and owned a Delaware LLC, and so buy common stocks through this US company will the dividends be taxed if i never withdraw them from the LLC or if i sent that income to the Dubai Company?
Great Video. I learned a lot. I am a US Citizen (Also from Puerto Rico) currently living in Central Florida. I retired from the US Army in 2012 and started working for the private sector afterwards. My plans now is to finally retire by the end of this year and start traveling. My wife and I are looking at moving to Europe and spend a few months in as many countries as possible starting with Spain. Our scenario is a little more complex as we have Real Estate Rental Property in the USA and Dominican Republic. Also have 401K, investments (Brokerage) including crypto, Military and VA Pensions, Social Security (Wife). What would you recommend in order to save on taxes? Thank You! Victor
Find a good tax law firm team for help, you and your wifes case is complex, you need a professional team. Once the tax team has filed for you for a couple years you can decide if you want to keep using them or copy the forms after you see what they do.
Vic, ty for your service. IF you reside in Puerto Rico for 183 days of the year, NO USA tax.
@@markswanson1564can you tell me more about this?
Raphael: at first you says the exit tax is over 700k. Then later you say it's over 2m
If someone going to renounce their US citizenship are they going to loose the social security benefits like SSA that they paid in the system for the last 35 years? Thank you for sharing your knowledge!!
Yes, you lose it all
Hahaha u worked for 35 years????
United States is not united States of America…..US citizen is not a state Citizen
Quick google search shows you can still collect - not sure if it goes to a spouse upon passing though.
Great question
Thanks for posting such a great video!! I am process of acquiring a green card through family i130 petition! I am a business person already if having business in Dubai ! Can you help me explain how can I manage things prior to getting my green card !! I am willing to meet you up for advise !! Can you help !
so as long as i make under 109k, i never have to pay any us tax when living in another country, is there any stipulations to that
Let’s say you have a foreign company 50% by a U.S. citizen and 50% owned by a foriegn trust with a U.S. beneficiary but that trust has no control of operations
Since when is Belize an island?
The rant about Muslim countries was totally uncalled for. Clear hidden bigotry in your statement actually. We are here for a tax tip not cultural innuendoes.
If I make a large capital gain in cryptocurrency after I move to Puerto Rico and after 2 years of being a bona fied citizen and I choose to move back to the upper 48 states are there any penalties? Also I’m very serious about moving to Puerto Rico are you able to assist?
how did some famous billionaire in the us like buffet, trump, etc pay zero tax or close to zero without leaving the us? what do you think is their tax strategy?
They don't pay zero taxes, but they only pay capital gains, which is less than income tax, because of corporate taxes, so the money is being taxed twice, something the media always leave out.
I must be missing something here..if i become a resident of another country I'm expected to pay taxes on money made in the new country im a resident of?? Does this mean I pay tax in that country and the US also?
Yes, unfortunately the United States is the only country in the world that you have to pay US tax if you are US citizen even if you live in another country all the time and you must pay tax on anything you earn there may be some exclusions, but even if you don’t owe anything you have to file. Read the IRS website information there’s a lot of information about this there but basically it’s complicated.
And yes, you do need to pay taxes in the other country you live in if you’re a resident unless there’s some different roles excluding you from that but usually yes.
Love the video. Quick question you did mention capital gains being taxed regardless but what if it’s through the company and you don’t claim those capitals gains on ur personal account ad a us citizen. Would that income still be taxable even though the company Thats in the uae claims it?
Thats what I am wondering
From what I understand, yes. As long as you are a US citizen / tax resident.
With capital ganes if I make a corporation with 50 % or less but still living in usa or in dubai capital ganes doesn't work like others company to low tax venefit grasias
How about 2 or more shareholder?
What if you leave and do nothing?
1:15 starts at
How about if the source of income is from doing business with US companies. How about my w2 income from US company. How about social security income.
If you get a W2 your an EMPLOYEE of the US business not just doing business.
If I move to the Cayman Islands and remove my US citizenship how to get a passport that lets me go back to the US?
Only countries that tax worldwide: North Korea, Eritrea and the USA lol
I wonder why the United States is like that, they are a lot different from North Korean and Eritrea, I thought ???
I'm listening
Thank you
Happy to help! Let me know if you need anything
@@WealthyExpat how are capital gains of your foreign company taxed if it is not an cfc ?
Grasias soy americano me gustan tus videos yo vivo del mercado crypto ay una forma de vivid en usa tener una corporacion en dubai y pagar menos tax olos capital gane no cualifican
can you avoid capital gains tax at a country that has no capital gains tax if your from Canada with crypto?
Exactly yes you could move to Dubai or any region that has no capital gains tax and you won't need to pay tax as long as you exit the tax system in Canada.
@@WealthyExpat oh I would have to move there? would just residency work? or what if I lived there for a year then came back to Canada the following year?
if you move outside of the us consider ditching that us passport lol
What about sole proprietors ?
You can still set up a business offshore and as long as you don’t live in the US more than 30 days per year, you get $109,000 without taxes and only 10.5% on your offshore company profits.
So if no one pays taxes what do you think happens?
Its called the azan, a call to prayer five times a day. Its not a song...not a song...👍
Thank you for this video! About the 50% shares owned by your spouse - what about the Sec. 318 attribution rules? Doesn't that make you a deemed owner of her shares?
Hadaan waayey xuquuq dee quustay kahadhay ameerika ogaada maanta dabadeed
How did you find your 50/50 business partner in Dubai?
My Ukrainian wife who works with me in the company
Dose u.s expat get some benifits like child tax cerdit if they do not work its hard find job in Iraq but can get some help from IRS We can not leave Iraq rturn to U.S because father of my children live here and they need to be with their dad be has not been in u.s never just me and my children are citizens
What would happen if an American Citizen, with Citizenship in Uruguay , living in Argentina and Brazil part of each year; simply let their US Passport expire ?
Would the US Authorities try to locate this individual ?
It seems that Uncle Sam wants to squeeze every last Dollar they can out of Some Person who wants to exit the “ Tax Prison” the US has become !
What if I moved from the US to France, I just moved so I worked from Jan-April in USA does it mean I worked more then 30 days and will have to pay double tax, should I just move back and only come to France Jan 1st 2023 to start a fresh calendar year.
We have an LLC and are hired to do appraisal reviews of U.S. properties - would this income still qualify under the earned income or does the profit have to be made outside the U.S.?
If you are earning that income yourselves (physically present) in the US or have dedicated employees in the U.S. then the FEIE won’t work for you.
Even though you have a company outside the US you still need to technically be outside of the country or have individual tax residency in another country to benefit from this tax exemption.
Also, it doesn’t matter if the money is sourced from the US, that’s fine as long as you aren’t physically present in the US or don’t have dedicated operations there. In other words outsource your labor to the US as necessary via freelancers and 1099 contractors to avoid the dedicated employee issue.
If I renounce my USA citizenship can I still visit the USA?
It will be same like visiting divorce wife. Depends on mood. Lolz
Thank you for the video
What about a non citizen that receives a salary from a nonprofit organization in USA but live in another country ?
Do I have to pay tax on Capital Gain (Mainly Crypto) if am not a US Resident and have an LLC based in Wyoming?
Im have a Dutch Passport
Is the exit tax based on the total value of assets up to 10 million? Or is it based on the actual capital gain/loss you have in those assets? What if you had no gain in those assets. What would your tax be? There is no exit tax on assets above 10 million? Thanks for your reply.
It's 2 million the limit, and it doesn't matter if you sold them or made any capital gains on them they will still be treated as sold. It's a very aggressive tactic designed to stop wealthy people from renouncing.
@@WealthyExpat How was that legal?
Puerto ricco should declare independence
Deff
😊
If the source of money is coming from the US your system won't work.
So you are a You Tuber and get a 1099. If you renounce your US citizenship, then you get no 1099. Do you pay taxes anywhere from You Tube income?
I plan on being a millionaire after this recession. I'll definitely be contacting you.
Does ur 401k and primary home count in the exit tax calculation?
Go look at what Colombia would tax you on a small US retirement income and then tell me the US system is the most oppressive.
@wealthyexpat you are living in uae so learn about muslim the voice you hear from mosque is called Azaan not song
Songs from the mosque😳? You don’t even try to show courtesy to the culture of a place where you make your living?
Video is 2 years old friend
what if you have an Europian passport and waiting for USA citizenship but planning to go back to spain??? and not have a really big networth, less than 100K
I wouldn't be concerned. I did the same and I'm about to renounce.
Death can be avoided. Through Christ. Lol okay I’m done. 😂❤