An example of one of the many people I have helped was a guy from Germany.

This German was paying out a tremendous amount in income taxes in Germany. I convinced him to not only move himself out of Germany but also get his assets out of Germany and to become legally non – resident of Germany to escape the top tax rate of 45% on his personal income and since he was in the import export business he could work from a Pure Tax Haven country or a country that had a Territorial Tax System.

I also showed him how to escape taxes on equities and all rental income on real estate.

I taught him that moving out of a high tax country and taking his assets with him and going to a tax haven country or a country that has only a Territorial Tax System would not automatically stop his tax.

For example, if you move to a Territorial Tax country such as Panama in Central America that taxes income only derived out of Panama and not income outside Panama but then invest in real estate there, you will have to pay income taxes on the rental properties in Panama because that income was derived out of Panama.

This German only spoke English and German and no Spanish.

He discovered that by buying real estate in a country such as St. Kitts he would have no personal income taxes on the rental income whereas Panama would incur an income tax and typically countries where English is the main language spoken will do better long term on its appreciation than a country where Spanish is the main language spoken providing the property is bought at a reasonable price.

St. Kitts does not have any personal income taxes inside or outside the country. St. Kitts also has a lot lower property tax long term than Panama and by buying property in St. Kitts this German could also get citizenship in as quick as four months if he chose to do so.

Now you might wonder why someone with a German passport might want to get a second passport since if this German does not like high taxes all he has to do is to leave Germany and become legally a non-resident.

St. Kitts and Nevis just like Panama and other countries will prohibit you from working in certain type fields unless you are a citizen of that country.

You can get residency in St. Kitts without being a citizen but to do this a company would have to be set up with company fees and to this would be very difficult unless you contract to hire several employees.

He could also buy a property that did not qualify for citizenship of around 300,000 USD that would give him residency but not citizenship with no right to work.

Getting citizenship in St. Kitts gives the foreigner who is now a citizen the right to work and gets around the work hurdle and also gives him a great insurance policy if he has a problem in Germany.

Having to hire St. Kitts Nationals when you really don’t need to long term can cost you a lot more than the citizenship would cost.

To get citizenship in Panama would take at least 10-15 years plus he would have to take a Spanish test and relinquish his German citizenship.

That would be a big mistake because Germany’s passport is one of the best passports in the world as far as visa free travel.

The St. Kitts and Nevis passport allows dual citizenship and there is no requirement to take a test in English although this German spoke fluent English anyway.

Citizenship in St. Kitts allows you and all your family members to not only work in St. Kitts or have a business there but you can get into businesses that are only allowed for citizens.

The tax savings from getting a second passport in St. Kitts can literally pay for the citizenship and passport.

St. Kitts’ property valuations on land are also cheaper than other pure tax haven countries where English is the main language spoken such as the Cayman Islands, Antigua, Bermuda, British Virgin Islands, and Bahamas.

A lot of countries restrict you from working or having businesses in certain fields unless you have citizenship in the country. It is also very time consuming or close to impossible to get citizenship in the pure tax havens I mentioned except St. Kitts and Antigua.

I also educated the German that leaving Germany and investing in another country would more than likely incur a withholding tax on the dividends in that country because most countries incur one.

There are 21 countries in the world that do not withhold any taxes on dividends so I told him if he wanted to avoid that tax, then he would need to pick an equity in that country.

No country to my knowledge in the world legally taxes capital gains on equities to non-residents except the U.S.A if that non-resident is a U.S. citizen. Even if a U.S. citizen qualifies for the Foreign Earned Income Exclusion, he is still responsible for paying capital gains on the profits on the sales of U. S. equities.

If you are a U. S. Citizen, the only legal way to get around all taxes with no limits is to relinquish your U.S. Citizenship and move outside the USA and any of its U.S. territories and move all of your assets outside the USA and its territories also.

I also showed him how to outsource for employees in some of the cheapest areas of the world where English is widely spoken allowing him more money to save for investing in his business and other investments.

I have worked with many U.S. Citizens and by being a U.S. Citizen you can dramatically lower or eliminate your personal, corporate, Medicare and social security tax a lot by setting up an offshore corporation and qualifying for the Foreign Earned Income credit but if you have a lot of capital gains and taxes from dividends you should strongly think about getting a second passport and relinquishing your U.S. Citizenship.