More of them fled to Austria (because of language/culture). 
DB2
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No way. If the poop hits the rotating propeller, you cash all that in (don’t withhold taxes) and you take it and run. There may not be a functional IRS left to worry about unpaid taxes 1 to 2 years later.
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Not looking to burn all my bridges at this moment. Just looking to move what I can now, setting up a landing spot for us and the family. My hope is that there is a backbone somewhere, but we’ve been rhyming with some unattractive history for a while now.
IP,
who knows many Venezuelans who were screwed by trusting too long
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If my money is with Schwab banking and brokerage and with Paypal? I can live paying the small bills in the EU. The EU will never reject me. I am an EU citizen. /////US citizen as well.
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For these types of people, I’d suggest that the best investment would be to begin regular therapy to help them get through the next few years.
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As to assets over seas, IRS already has you check a box if you have them. Not sure what happens if you check the box.
Sounds like the IRS will still collect. Unless you manage to smuggle cash or assets out of the country. I think that is covered by money laundering rules.
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You might get privileged treatment, kind of.
You bet.
In 2014 FATCA was implemented by the United States to prevent tax evasion by US taxpayers holding financial accounts outside of the US. Through Intergovernmental Agreements between the US and other countries and subsequent local legislation, Financial Institutions globally are required to comply with FATCA by performing due diligence on all their clients and reporting on US Persons to the IRS. Since the introduction of US FATCA our clients are required to provide us with additional documentation to establish their FATCA status.
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The socialists can move to Cuba.
The crux issue is can the USA arbitrarily confiscate your assets. In the USA itself, obviously, albeit illegally. But legally established and owned real property and bank accounts outside the USA are far far more resistant to the desires of USA to punish, loot, and pillage, so long as that foreign government is not a pawn of the USA.
The current administration is doing a remarkable job of rapidly creating ill well abroad, from beggars on the streets up to the most powerful politicos. However, Spain, Germany, Italy and France have political trends that could get dicey. That is one reason I am now splitting my main assets between Mexico and USA.
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Massage therapy in Lourdes France seems to be the right idea.
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The US went to war with Germany in WWI because of Germany’s unrestricted submarine attacks, including American ships.
In WWII, the US declared war on Germany only AFTER Germany declared war on the U.S.
In other words, we went to war to defend and save the United States, not to save Europe. And yes, our interests were clearly aligned with our allies in Europe.
Much like NATO, the US is in it because it is in our own best interests, not because we’re benevolent. It’s in our own economic and military interests to do so.
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Actually, the last straw was the “Zimmerman message”. The message proposed to the Mexican government, that Germany would support a Mexican invasion of the US, if the US entered the war.
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Yes. Anyone with a foreign bank account has to declare income. If the income has already been taxed by a country with a reciprocal agreement with the U.S. the taxes don’t have to be paid twice – they are tax exempt in the U.S. if they have already been taxed. Otherwise they are taxed at U.S. rates.
The issue is not tax avoidance. It is protection from confiscation because other countries are likely to resist confiscation by the U.S. government.
Wendy
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wrt dividends, there is a limit to the amount of foreign sourced divis that are deductable, something like $300, some years ago, when I last looked. If you have more than that, there are more forms to fill out.
Steve
I doubt any of us are remotely ready for a Fascist government takeover. If I didn’t have family here to protect and defend (children and grandchildren), I would have already bought land in Ireland or New Foundland. In the near term I have battened the hatches for short term financial panics - a modest paid-for home, a cash stash (hundreds, fifties and twenties) , a personal garden at my daughter’s orchard, numerous berry bushes and trees, and skills. Even though I retired on 12/31/2018, I retained my law license. I take care of myself. At nearly 69 years of age I could still do manual labor if I had to.
I have no idea how to protect my investments from government confiscation. It would probably overwhelm us all at once - sort of like hurricane Helene or the LA wildfires. Or Germany circa 1933.
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The only way to stop it without shutting down the government is to make billionaires pay taxes too.
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Not looking to avoid taxes. Just looking to make an informed decision.
Not looking to surrender citizenship, but to set up a lovely landing spot for our kids should the need suddenly arise. Besides, we are still reasonably young, so residing in say Malta, could be interesting. I am not eligible for Medicare for another 3+ years, and the savings in my health insurance alone would pay for DH’s while he continues to pay for Medicare…assuming the program continues. Or maybe we just find a place in Canada that we use for the summer, traveling to the US for health care. Looking outside the box…
And avoidance of US gov’t bonds if TI does his favorite thing and declares bankruptcy.
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To be a little more correct, all taxes related to foreign countries are first dealt with by any tax treaty between the US and the other country. Over the years, the US has tried to make the treaties similar, but they are far from identical.
The general starting point is that US citizens are taxed on their worldwide income. There is a foreign tax credit available when income is taxed by the US and another country. And there is a limited exclusion for earned income (basically wages) from working in a foreign country.
All of these are subject to modification by the relevant tax treaty.
—Peter
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Yes, and don’t forget to file the FBAR. Which, of course, makes sure the US authorities know where all your accounts are at.