[charlesdm]

Unless you're actually living in a tax haven or a third world country with no CFC laws, you're almost certainly breaking the law with this.

The conversations I have had with people who have found the gold wheel is mind boggling, and they almost all get in trouble at some point.

[refurb]

Based on my limited knowledge it seems possible. The US allows you to exclude $106k USD in foreign income if you’re not a US resident. You can also add some housing costs to bump it up.

Many countries won’t tax you if you work there and a) all your income and work is outside the country, b) you do t spend enough time there to become a tax resident (I’ve seen 180 days for some).

So if you’re willing (and able) to split your time between 3 countries, not go back to the US and get all of your income from outside those 4 countries, you could effectively pay little to no income tax and it would be legal.

But please hire a CPA.

[PaywallBuster]

US citizens can move to Puerto Rico and pay 5% tax, very legally

[AdrianB1]

It may be possible; maybe not 2.5%, but total tax rate below 10% is possible =legally= in some places. Yes, it is a punch in the face from the governments to people that pay huge taxes like 50-70% in most of Europe, but this is what governments are very good at doing: discriminating.

[otar]

Indeed it is possible. I could be getting away with legal, accounting and bank fees only and paying 0% but I prefer this way.

Through the history there are loads of examples: Warren Buffer paying lower tax rate than his secretary (ever got interested how?), Eduardo Saverin denouncing US citizenship in favor of Singapore citizenship and saving hundreds of millions in taxes.

Right now I hire contractor developers in Ukraine and they pay 5% on their income + minor accounting fees.

There are loads of government incentives around the globe, especially for the IT people.

US is the worst of citizenship in terms of taxes. You pay taxes citizenship-based on your worldwide income, while most of other countries tax residents, not citizens.

In a short, move away from a high-taxation country in a low-taxation country and enjoy the benefits. Or become a perpetual traveler and be a tax resident of NO country. There are loads of countries that offer good balance between taxes and life quality.

https://nomadcapitalist.com/tax-reduction/

[AdrianB1]

From certain countries you cannot move out as a tax resident to become a "no country resident". For example if you are a Romanian citizen living in Romania and you move abroad, you cannot remove your Romanian tax residency unless you prove you are a tax resident in another country for at least 6 months. As a slave you can change your master, but you cannot get free.

[lowpro]

Plenty of first/second world country have more friendly tax laws. Many don’t tax foreign income, and if you live outside the US for 300 days per year, you get a $100k tax write off up front.

There are many legal ways to live in nice places and pay low tax.