How the Exit Tax Works

[image]( {NAME}, Last week I told you why it's valuable to create offshore infrastructure for tax savings BEFORE you need it. That's largely because many countries apply an "exit tax" when you leave the country, where your unrealized capital gains are taxed as "one last bite at the apple" by the taxman. For US citizens, an exit tax is applied if you renounce your citizenship and have a net worth of at least $2 million, OR have paid about $890,000 in federal taxes over the last five years (adjusted for inflation), OR have outstanding issues with Uncle Sam. For non-US citizens, each country is different. You are generally liable for exit tax when you become a non-resident of your country for tax purposes. You won't need to give up your citizenship (although more countries are threatening US-style worldwide taxes), but you will need to make some lifestyle and operational changes. If an exit tax is applicable to your situation, you'll need to add up all of your assets from equity investments to crypto holdings to the value of your business. Each country does things a little differently, but basically everything is on the table. [image] There are numerous legal strategies you can use to value your assets, but as we've seen with several celebrity cases, you can't plead poverty until you're actually poor. The good news is that, contrary to popular belief, you generally won't be taxed twice. No capital gains means no exit tax in most cases. (This isn't tax advice, so either check with your own tax counsel or engage us to review your situation for a proper answer.) Since capital gains tax rates could range from the teens to the high-40s depending on where you live and the condition of your assets, it's important to be prepared in advance and ready to “pull the trigger” when you need to. You don't have to change your entire life to get prepared, but you should prepare for the possibility of a new approach to life in the future... well before you need it. Yours in freedom and prosperity, [image] [image]() = [Unsubscribe]( Nomad Capitalist LLC Kidnah, Block A Plot 4 Fujairah, Al Fujayrah United Arab Emirates (the) +1 (979) 966-6623