International Living

US tax rules sour life for Americans abroad

"Scott Schmith is a patriot and a US military veteran but he is no longer a US citizen: Sick of complex tax rules making his life in Switzerland miserable he recently handed back his passport. 'It was a pretty big decision and there was a bit of anxiety,' said the 50-year-old photographer who served in the 1990-91 Gulf war and has been living in Switzerland since 1993. But once he received his Swiss passport and handed back his US one last September, 'it was like a load of weight off my shoulders.' A growing number of American expats are opting to give up their citizenship rather than deal with the increasing difficulties imposed on them by US tax authorities." Continue reading →

Continue ReadingUS tax rules sour life for Americans abroad

Expatriation – Everyone’s Doing it, Maybe You Should Too

"Take a look at these names and you will know what unites this disparate group: Pop icon Tina Turner; Facebook co-founder Eduardo Saverin; French movie star Gerard Depardieu. These three individuals have in common good sense and a keen grasp of the bottom line on a profit and loss sheet. And they all recently have been in the spotlight for ending their native citizenship and moving their residence elsewhere. They were sensationalized by the news media and accused by politicians of unpatriotically avoiding high taxes at home." Continue reading →

Continue ReadingExpatriation – Everyone’s Doing it, Maybe You Should Too

Two Chess Moves Away from Capital Controls

"Is it really so far-fetched to think politicians wouldn't somehow restrict the movement of gold if their currencies and/or economies were failing? Transferring dollars internationally would certainly be tightly restricted as well. Moving almost any asset across borders could be declared illegal. Even your movement outside your country could come under increased scrutiny and restriction. The hint that all this is about to take place would be when politicians publicly declare they would do no such a thing. You could quite literally have 24 hours to make a move. Even the most nimble of us would have a very hard time making arrangements." Continue reading →

Continue ReadingTwo Chess Moves Away from Capital Controls

Beating Obamacare: Hospitals Across Borders

"You are stuck with Obamacare if you need health insurance. If you can pay for treatment, you can get treatment far cheaper with no waiting period. Here’s how. No rationing. No standing in line. I like the hospital ship idea. Get on board, sail 200 miles outside the USA, and you get cheap, efficient care. The envy-driven politicians will scream bloody murder. 'The rich are getting good care! They can afford it. It’s just not fair!' This raises some crucial questions. How are they getting good care? 'By not having to deal with America-licensed doctors.'" Continue reading →

Continue ReadingBeating Obamacare: Hospitals Across Borders

The perils of overseas tax disclosure: An immigrant’s story

"When Andrew Winfield applied to become a U.S. citizen in 2011, he realized he owed taxes on accounts he had left behind in his native England. So he paid what he believed he owed — $2,800 in back taxes, plus the estimated interest and penalties - and entered the IRS's overseas disclosure program. But when the IRS assessed its penalty in November, Winfield was stunned to learn that it would be $28,000 — 10 times the amount of tax he owed from 2003 to 2010. Because the penalty is based on balances when the exchange rate favored the British pound, paying that amount would mean giving up virtually everything he now has in the accounts." Continue reading →

Continue ReadingThe perils of overseas tax disclosure: An immigrant’s story

Tina Turner to become Swiss citizen and give up U.S. passport

"'I’m very happy in Switzerland and I feel at home here. … I cannot imagine a better place to live,' Turner told German language daily Blick. The woman behind such hits as 'Private Dancer', 'Simply the Best' and 'What’s Love Got to Do With It?' will still need a green light from the canton of Zurich as well was federal authorities before she can receive red passport, the two papers reported. Turner spokeswoman Karin Rhomberg told the Zuerichsee-Zeitung that the singer wanted to 'clarify her situation'. 'Tina Turner will therefore also give back her US citizenship,' she said." Continue reading →

Continue ReadingTina Turner to become Swiss citizen and give up U.S. passport

Cuba, part one: first impressions

"My wife and I traveled to Cuba with 22 other Americans (January 9-16) on a tour organized by Road Scholar; a Boston based nonprofit travel agency formerly known as Elderhostel. Road Scholar has a license issued by the Office of Foreign Assets Control of the U.S. Treasury Department to conduct People-to-People interactions. On January 9 we took an early morning one-hour charter flight from Miami International Airport to Cienfuegos, a port city of about 100,000 in the southern central part on the island. In addition to our group dozens of Cuban Americans were on board to visit their families." Continue reading →

Continue ReadingCuba, part one: first impressions

It might not get weirder than this: Sophie Schmidt in North Korea

"Ordinary North Koreans live in a near-total information bubble, without any true frame of reference. I can't think of any reaction to that except absolute sympathy. My understanding is that North Koreans are taught to believe they are lucky to be in North Korea, so why would they ever want to leave? They're hostages in their own country, without any real consciousness of it. And the opacity of the country's inner workings--down to the basics of its economy--further serves to reinforce the state's control. The best description we could come up with: it's like The Truman Show, at country scale." Continue reading →

Continue ReadingIt might not get weirder than this: Sophie Schmidt in North Korea

New tax to fund Obamacare could leave American expats in Canada owing Uncle Sam

"Americans will be subject to a new 3.8 per cent tax on investment income that kicks in this year to help pay for the government's new healthcare program, known as Obamacare. Lawyer Kevyn Nightingale, a Toronto-based U.S. tax expert, estimated tens of thousands of Americans living in Canada could be affected by the new tax and find themselves owing money for the first time. The problem, the Globe said, is that unlike rules that allow expats to claim credits for taxes they've paid in the countries where they live, they can't offset this new tax." Continue reading →

Continue ReadingNew tax to fund Obamacare could leave American expats in Canada owing Uncle Sam

David Galland: Lessons from the Argentine

"In today's missive, I plan on sharing just a few of the lessons learned since moving to Cafayate in the Salta province in scenic northwest Argentina. It's my hope that my observations will be of use to you in getting through the challenging times still ahead for the major developed economies. That's because, as I probably don't need to tell you, the Argentines have almost unparalleled experience in surviving the regular financial crises their government has proven so adept at creating. In fact, since Juan Perón took office in 1946, not a single ten-year period has passed without being molested by a serious crisis, and often more than one." Continue reading →

Continue ReadingDavid Galland: Lessons from the Argentine