Would you like me to show you how to legally avoid all income taxes, capital gains taxes, dividend taxes, corporate income taxes, Social Security taxes, Medicare taxes, interest income taxes, inheritance taxes, estate taxes, VAT, sales taxes, stamp duties and live in a paradise country that has great weather year- round?

I can show you how to do it legally if you are willing to relocate and stay out of your home country a certain amount of time each year.

If you are a U.S. Citizen you would need to get a second passport and relinquish your U.S. Citizenship to avoid all of the above taxes ,but you could still avoid a lot of taxes by just moving abroad and being out of the USA a certain amount of time each year qualifying for the Foreign Earned Income exclusion still keeping your U.S. passport and not having to get a second passport and never having to relinquish your U.S. Citizenship.

There is another option that can reduce your overall tax bill and that would be by you and your company moving permanently to any of the nine states in the USA that presently do not have a state income tax or to Puerto Rico that not only does not have a state income tax but a lower federal tax rate than the USA since it is not actually a state of the USA.

The problem with Puerto Rico is the restrictions on the amount of days you have to be in Puerto Rico each year to get the lower Federal Rate and the IRS is cracking down on this real hard.  The IRS will look at the times you entered and exited Puerto Rico to see if you have complied.

The lower federal tax rate in Puerto Rico has only to do with what is paid out to the corporation, not yourself, and Puerto Rico is now desperately wanting to become a state of the USA and if that happens the lower federal tax rate goes out the window and becomes the federal rate of the USA.

You also would not be able to avoid the Medicare and Social Security Tax.

By qualifying for the Foreign Earned Income credit there is an exclusion on you and your wife’s income up to a limit if she works in her own business or works in your business with no federal tax rate at all up to that credit limit plus overseas living deductions [this limit goes up each year] and of course no state tax.

You can also set up a foreign offshore corporation that pays you and your wife’s salary and no required payments to the IRS in the USA for the Medicare and Social Security tax because foreign corporations do not have to pay these taxes. This would be if the Foreign Earned Income credit was qualified for and the Form 2555 is filed with the IRS.

Whatever you pay in a state income tax can be taken as a deduction off your federal taxes but keep in mind that almost all states that do not have a state income tax will usually hit you either on high sales taxes or ridiculous property taxes or both as compared to the state that has an income tax.

Texas for instance does not have a state income tax but does have an overall average property tax rate of around 2.18% which is very high.

As Kiplinger stated:

“If seeing your state take a bite out of your paycheck (on top of whatever the federal government withholds) really grinds your gears, then consider moving yourself to one of these nine states. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no income tax – for any residents.

Be advised, though, that states still have to find money to pay for roads, schools and more, so other taxes may be higher. Texas, for example, has some of the highest property taxes in the U.S., and Tennessee, the second-highest average sales tax. In addition, New Hampshire and Tennessee tax some dividends and interest, although Tennessee plans to phase out its tax by 2021.”

Also, if you relocate your business I would not do so unless you are really hitting a homerun because you also have to take in consideration if your business moves how is this move going to affect your production income wise as far as your clients and loss of momentum. That figure has to be considered to.

THAT IS WHY I SAY IF YOU ARE GOING TO RELOCATE TO ANOTHER STATE WHY NOT JUST MOVE OUTSIDE THE USA AND GET YOUR TAXES TO POSSIBLY ZERO OR EVEN BETTER YET RELINQUISH WHEREBY THERE IS AN UNLIMITED CREDIT ON WHAT YOU MAKE BECAUSE YOU ARE NOT AT THE WHIMS OF THE IRS IN THE USA ANYMORE AND RULES SET UP FOR THE FOREIGN EARNED INCOME CREDIT WILL NOT APPLY ANYMORE.

The IRS in the USA has actually considered getting rid of the Foreign Earned Income credit.