Want lower taxes? Do NOT move to Nevada or Florida
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- Опубликовано: 1 фев 2017
- If you want lower taxes, do not move to Nevada or Florida! Why?
Keep watching the video for details.
We all know that entrepreneur that moved from California to Nevada, or from New York to Florida, to save on taxes.
After all, nine US states have no state income tax, and not paying state tax can save you thousands of dollars.
However, by applying the 80/20 Rule, we find that most entrepreneurs who eliminate state tax are only saving a fraction of the taxes that they could by moving overseas.
In this video, Andrew discusses why moving to another state to eliminate state income tax is unproductive when compared to the tax benefits of being an expat.
He explains that moving is moving, and if you can move to Miami, you can probably move to Panama.
The truth is that you can't avoid taxation in the US, but there are so many legal and straightforward ways to do that when you get out of the country.
To learn more about different types of taxation, take a look at this video:
• Three types of tax in ...
If you want to work on your offshore strategy and plan, then this channel and Nomad Capitalist are right where you're supposed to be. Keep watching!
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ABOUT NOMAD CAPITALIST
Andrew Henderson travels to nearly 30 countries every year to stay up to date on the latest legal strategies for entrepreneurs and investors to pay less tax, grow their money faster, and build their personal freedom.
Andrew started Nomad Capitalist to help people like you follow his five magic words: "go where you're treated best". He has personally started foreign companies, opened offshore bank accounts, and obtained multiple second passports.
He also learned the hard way that perpetual information seeking is often the biggest barrier to getting the results you want. Many entrepreneurs spend months and even years constantly researching how to pay less in tax or live overseas, but are afraid to make the jump.
As a result, they get stuck and keep paying a fortune in taxes and never get the lifestyle they deserve.
Nomad Capitalist's RUclips channel is based on Andrew's vision that focusing on the end result, rather than the latest shiny object, is the best way to actually obtain the benefits of the Nomad Capitalist lifestyle.
About Andrew: www.nomadcapitalist.com/about/
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So, this is directed to entrepreneurs. Has nothing to do with a regular person retiring in CA, then moving to a state that doesn't have taxes on pensions or SS. I think some people might be confused.
This video is a load of bs, moving out of the US to avoid taxes is pretty stupid, unless you don't want to be a US citizen anymore ?_? Which is pretty crazy! You still have to pay federal taxes if you move out of the US. This is not even how the big companies avoid paying their taxes.
This is a very short video that doesn't go into details at all.
@@worldserpent731 who wants to be a US citizen these days
@@priestesslucy3299 Most people outside of the US, UK, Canada, or Australia. I'm not saying the US is perfect, or as good as it use to be. I don't see anyone renouncing their citizenship to save money.
I'm pretty sure you don't want to move to any Tax Havens. Hong Kong is a huge mess (sucks for the people of HK :( ), Ireland has always been a mess, and the others on the list are worse.
@@worldserpent731 something tells me that's beginning to change over the past 1-2 decades. At least among the educated people outside those legacy brand countries.
In theory there's a lot of opportunity here, but the government and political climate is decaying
@@priestesslucy3299 Oh, I agree with that. Things are not what they use to be.
At times I feel like moving out of the US, but that's really hard for me to do. I already have wife and kids.
I spend a lot of my time nowadays watching travel RUclipsrs (from the US) who have lived or currently live in other countries.
First I hate the US tax system and think it is very unfair, and if you can legally get out of paying the IRS then that is awesome. But this video is very misleading, remember US source income is taxable to the US even for foreign owned businesses. Moving to another country doesn't necessarily mean you don't pay US taxes. The foreign income exclusion is not a gimme. US citizens are taxed on world wide income but can exclude an amount of your foreign earnings that is adjusted annually for inflation. But remember there are rules that must be followed and the IRS counts the days you are in another country and the days you are in the US. Also if you are self employed you still have to pay self employment tax even if you have a foreign income exclusion. Depending on the tax treaties of the countries involved you may have to pay social security tax on income earned as an employee in a foreign country. Just ask former treasury secretary Timothy Geithner.
You still have to file a tax return even if you don't owe tax and there may be other reporting requirements depending on your situation.
Another thing you must determine if you have Effectively Connected Income from a US trade or business, or other US source income which can be tricky to determine. Passive or investment come doesn't qualify for the foreign income exclusion, so it is taxed.
The IRS has been actively pursuing people who have US taxable income, for example requiring disclosures of foreign assets and FBAR filings or US citizens and residents. The have been very aggressive with offshoring and the fines are very stiff for unreported income or assets, so it's not a good idea to hide assets from the IRS.
For some individuals it may indeed be a great idea to leave the US for tax reasons, but its not a simple matter and hire a competent tax adviser to help you navigate the issues. Tax evasion is not a good idea, so be prepared.
Crankyandtaxing Overall I agree it’s a scummy tax situation with this and that trick in the law to steal money, and any US citizen who wants to do anything outside the US is best off renouncing ASAP. However, you clearly do not have experience with international tax planning for US citizens. At least in the pre-GILTI scenario Andrew is referring to, avoiding the self employment tax was as simple as opening a foreign corporation and paying yourself non dividend compensation up to your maximum deductions and deferring the rest by keeping it as the corporate level. But really the secret was and still is to get residency in a US territory with no tax like Puerto Rico and open a corporation there (technically 4% corporate tax but the effective rate is less than 1%). Then you’re free to go live wherever you want globally without being taxed on worldwide income since this is the only form of residency that supersedes the US tax system as a US citizen. This is why high earning US expats living abroad didn’t renounce for tax reasons because they had no need to. Actually many of them would just return to living in the US and if they planned a bit they would still pay 0 legally. But TCJA closed this territorial emancipation this year, so now you have to actually stay in your US territory of residency 183 days/year to retain this status, and if not you’re going to get slammed with ordinary rates on dividends and even higher GILTI taxes at the current corporate level. Yuck, count me out. This is why I renounced my citizenship late last year.
@@jamespalaiologos7223 Puerto Rico pays individual federal tax.
It does if you give up your us citizenship and give them the finger.
@@LM33333 I think he's talking about corporate taxes
Although Texas has no state income tax, they have high property tax.
Yeah well if your making enough money paying a little extra in property taxes in a state where 1.5 million dollars basically buys you a 13-15 million dollar house in California or New York makes sense tax wise.
@@austinblackburn8095
I wouldn't say it's "little extra."
It all adds up. The higher the value of your property is, the more you'll pay in taxes.
Another thing to think about is that you'll never STOP paying property taxes. So would you rather pay off your home at a higher cost, then have a lower amount to pay in property taxes for the rest of your life?
OR
Would you rather save money paying off your home at a lower cost, but end up paying higher taxes for the rest of your life?
I don't like the idea of paying higher taxes the rest of my life for something I own, but I also refuse to spend nearly $1 million on less than 2,000 sq ft of space.
It's all relative though. If you're coming from somewhere like CA or NY then you probably won't be phased by it, but that's not going to be the case if you are coming from a state with a lower cost of living with lower taxes.
@@SharJ24 Your right it does add up, but at a certain Income level you will pay less taxes in the no income tax states than you would outside. However for the average person not making millions states that have low income taxes but also low all around taxes as well are probably the best bet for getting charged the least taxes.
Depends on the County/City. In the DFW area it varies from 1.84% to over 3%. Rural Texas is probably a lot cheaper.
"the average effective property tax rate in the Lone Star State is 1.83%. Compare that to the national average, which currently stands at 1.08%. The typical Texas homeowner pays $2,775 annually in property taxes."
Is your house worth 10 million dollars? if not stfu. even if it was 2% of that won't hurt you compared to paying state income tax weirdo
Sorry, absolutely Loving living in Florida from Illinois.
but if you work in the united state, generate income in the united states, even though your company is abroad, you still need to pay taxes, (the 15.3% employment tax , and the fed and state (if applies) tax as well, right?
Yes
Also he doesn't explain why some of these places are traps 🙄Some states have higher sales taxes and property taxes also, but a few no income states like Alaska and South Dakota seem to good to be true.
If you make $1,000,000 or more in California you'll pay 13.5% state income tax on that ($135,000) and in Florida you'll pay $0. If you can move, like Matt Druge did, it's a no-brainer, or move abroad and renounce US citizenship. Even better.
Jean Paul yea that’s what I’m saying lol this made no sense to me I think he jus likes Panama a lot..
The taxes are very high in California, but the 13.5% tax rate only applies to the amount earned over one million dollars. The rest of the money is taxed at lower rates, mostly at 9.1%, which is also too high in my opinion.
The $0 FL state income tax is only a propaganda talking point. States with no income tax will make up the difference in higher than national averages in property tax and higher sales tax on groceries, clothes and other goods. State governments use taxpayer dollars to fund road maintenance, law enforcement agencies and other public services. No free lunch
😂😂😂
@@jh748 Not really true, some states waste enormous amounts of money; some states like NV use industry-specific taxes (gambling) to remove the burden from individual taxpayers.
If you are leaving CA today you will be saving up to 12.3% percent in tax AND depending where you are going buying a home will also be WAY cheaper.
Not everyone can afford the same things and you will get what you pay for.
@@jh748 I lived in SF from 2018 to early 2021, EVERYONE who had a good job left the city, I went back December 2022 it was a ghost town, Market street was taken over by drug addicts and homeless, SF is done.
Moved from New York to Miami and saved 15k in 2019. What the hell are you talking about?
Yea this guy is wack
As a W-2 employee I can't escape federal taxes but I can escape state taxes by moving, so it makes sense to me.
If you move from California to a location outside the US, California will continue to pursue you for California state income tax for as long as you remain an American citizen. It is very difficult to convince them that your legal domicile has moved to the foreign country without renouncing your citizenship.
Problem is that not every entrepreneur CAN move outside of the United States...or perhaps they, for some reason, wish to remain in the US. Even a move from Utah (which taxes both income AND sales) to Nevada (which has no income tax, but still uncooly taxes sales) is still a big difference, especially for poorer entrepreneurs.
Hi Tai, thank you for your comment!
Nomad Capitalist No problem! :)
Tai Rhoades Thank you for making me feel hopeful.
Or would we want to. Last thing I want, is some asshole fuck telling me what guns I can or can't have.
There's a social agreement that I pay taxes and people stay the fuck off my property.
There's also the fact that my business requires a healthy stock market.
That means I have to stay in the U.S. The rest of the world fucking SUCKS, when it comes to their stock markets.
China's full of scams and London has ZERO VOLUME.
And again, most places are collectivist shitholes. I'm extremely individualistic. I think collectivism and "democracy" is just the majority bullying the minority. It's the stage before tyranny. Plato was right about that. Constitutional republic means that rights can't be "voted away". What that's worth to you, dictates what it would take for you to leave.
@@manictiger Your rights are gonna be voted away pretty soon. Lol
The title says not to move to nevada or florida. You haven't discussed why
I’ve lived in Singapore for over 20 years and travelled all over SEA and now live in CA and I can tell you the humid weather alone is a BIG reason to not live in those places.
I can imagine, well now you can move to somewhere cold if you want :D
california bad
Why the heck you have lived in SEA for 20 years then, duh.
@@isaac.2605 funny pfp
You made this more difficult 😂😂
Now that youre not in Bali anymore.....may i know where this resort is or what it it called?
Great video Andrew. What resources do you recommend for nomads with an existing Nevada residence? What foreign low-cost alternatives are close Nevada for the optimal strategy you described?
I am a owner operator I am planning on working Monday to Friday in my truck don't have a address in usa but live in México will that help my tax situation
You should rent out a buisness p.o. box from Regus Offices or Premier offices in las vegas and Use that as your business address.
Then you can say you sleep in gour truck for over 183 days . (for example 185) .
That could help but ask your tax person
What happens if all your income is all rental real estate in CA and NV. If I move overseas then don’t I still have to pay Federal Income tax because my rental income is generated in the USA?
He's talking about state income taxes [CA has relatively high state income taxes; NV is like TX & FL, etc that have no personal income tax.] Regardless of where you live, the Feds get their cut...
Excellent video thank you! I've been down a long rabbit hole in searching the best income tax free states side by side. My top priorities are no income tax, no retirement tax (I have a 401k), no requirement to be physically present in state for long, no vehicle emissions or safety inspections. I'm particularly interested in FL and TN. Can you offer any spreadsheets you may have showing a side by side state comparison as I'm sure you created at some point? Or any websites that you found very good at what I'm after? PLEASE SHARE YOUR HELP AND WISDOM AS I REALLY NEED IT!!!
He's talking about corporate taxes not personal . There's benefits to moving your corporate office to other places.
What happens if I am poor asf cleaning toilets at McDonald’s in California and want to move to middle of nowhere in Nevada won’t I save some money that way?
Yes, not only will you save money through lower taxes and lower cost of living but you'll also have a better chance at starting your own business even if it's just starting a window washing service which would be better than the toilets. Consider a town like Pahrump or Winnemucca.
I can remember when the US did not tax earned income outside the country after one year. What the hell happened.
Trump's tired of non-citizens taking advantage of the U.S. Cry about it.
The FEIE only applies to the first ~105K or so of what you earn outside the US. After that, you are taxed twice...the country you are living in AND the US, and at the income bracket for your higher salary.
@Bee Liever
Ah yes, making money from building businesses is a crime, says the guy that worships a badly made child's movie.
Imagine if you put all that effort into self-improvement, instead of unwittingly supporting the CCP and WEF's agenda.
does your group advise people who have double citizenship? I went to apply but I don't meet your millionaire requirement yet... can you still help me on a smaller scale?
So are you saying not to move from Cali or New York to a state like Texas or Kentucky to retire to have a lower cost of living and not have to pay Social Security tax.
But you actually have to physically move right?
I really liked this video, you should do more like it.
I live in NYC, when I move to Florida I will be saving $10K a year in taxes
Not if you buy real estate, not if you plan to buy groceries, gas or insurance.
This title is way off. Nevada has some of the lowest overall taxes in the country thanks to Vegas.
So what to do to avoid paying federal taxes on pension income and 401K distributions and conversions, any info on that, a tax haven country to move to. I don't know of any way or place, but if you do then I am listening. Anyone else reading this knows? I would move for that. Thanks
No CA state income TAX + Cool Guns , why not ? move to Nevada ?
Just remember that NV has absorbed a lot of the PRK mass exodus in the last few years, & unfortunately, the people fleeing CA have brought their brainwashed loser politics with them. NV is turning red ["blue" WTF happened that we started calling the states run by closet Marxists "blue" states? Someone needs to call the leftist-controlled media on the carpet & get this mixup straightened out....] at an alarming rate. Bottom line, you may not be able to keep your cool guns in NV for long if the trend continues.
@@nunyabidniz2868 Weirdo. Your one of those people....
@@nunyabidniz2868 Nevada has been a blue state since 2008 way before Californians started to move in. Dont blame California for Nevadans voting blue🤨.
IF you move out of the U.S to pay the foreign countries tax, you have to denounce your citizenship!! All citizens of the U.S are subject to the IRS whether you live in Bermuda or NYC
there are some exceptions to this depending upon certain factors, it's called *Foreign Earned Income Exclusion* -- Said factors are:
1) How much you make a year
2) How much time you've spent outside the US in a year
3) How you make said income
www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion
airsoftmarinesniper You sounds like you like the IRS. The IRS isn’t your friend you know.
There is an exit tax if you denounce your citizenship. You will be sorry in the end. Go ahead and find out. No thanks
Not if you set up your business in Peurto Rico...
Its USA, minus the IRS...!
Certain entrepreneurs and high net worth individuals may be able to structure things to avoid US taxes, but most folks would need to renounce US citizenship to truly avoid US taxes. You would have to settle any debt from tax-deferred accounts before renouncing, which for some would be a deal-breaker.
What about moving to Puerto Rico? You can become a resident after 182 days, income tax is 4% and you retain US citizenship?
High crime, nothing to do, people that are jealous of rich people?
Sooo. They don't collect income taxes in foreign countries??? What loophole allows you to NOT pay U.S. income tax if your income is derived in the U.S.?
Wait. Federal was still 140k No matter what state, but state tax was 30k in California. Now in Florida he saved 30k. Dude came up. You make no sense
Caligornia to Nevada, New York to Florida... recipe for happiness :)
No please not Florida, we already have enough stupid liberals in the Miami area.
do not move to Nevada or Florida! Why? Please answer directly a question
Even though Florida has no personal or state income tax, the jobs don’t pay well at all, they charge you more for other things like crazy high expensive auto insurance around $2,500+ a year, property taxes are going up like crazy, groceries are even more expensive in Florida than the national average. I had a 2 bedroom 2 bathroom condo with only a parking spot. I was paying $7,300 a year between the property taxes and hoa fees. In the end, you gain nothing.After I sold my Florida condo, I bought a house in Virginia with 3bedrooms, 3bathrooms, attic, basement, 2 car garage, driveway with acres of property and my property taxes are only $1,480 a year, $960 a year auto insurance and have a much better paying job. Plus, Virginia is much closer to NY. So, I wouldn’t have to travel far at all to visit my family in NY.
You cover why this no-income tax is better stuff is nonsense. No income tax can be worse for low income people because the rich pay almost nothing and low income people can be crippled by it. The rich don't have to chip in more.
@@jameskeefe1761 The "no state income tax" is only a propaganda talking points for those who do zero due diligence.
Can you move to Mexico ?
It’s a cabana
Good vid.
The USA is one of the three countries that have citizenship based taxation. This means that if you live outside of the USA you are still subject to US federal taxes and the ones of the local government (depending on where you are moving).
Yes, but subject to exclusions and exemptions which reduce the rate.
You'd be paying taxes in your new country though. I'm still sorting this all out but, if you earn over, what is it, $120,000 a year or something, then the US wants a cut, even if you're not living there? How do you avoid that, and how do you decrease the taxes you'll pay in your new country? What's the best setup to have if your income is US based (say it all goes to your US LLC currently...) but you live somewhere in Europe? How would you avoid as much tax as possible?
Welcome. Check out our channel playlists for dozens of videos that answer these questions and more.
Most countries only tax you if you stay 6 months or longer. So he recommends 3 homes, 4 months per home.
In a place like Europe where they don’t have internal borders, you can stay the whole year without them knowing to tax you.
Otherwise, 2 homes should be plenty. Or, mix up home living and traveling.
All the above leads to $0 foreign taxes and much US taxes waived up to $106k/yr.
@@kenlewis2253 Not everybody wants to pack up and move every few months. I'm talking about just having a normal life LIVING somewhere. Owning a home. Paying rent. Whatever it is. Not traveling for the rest of your life. I traveled over the summer, with my car full of belongings and my cat in the passenger seat, and I'm glad to have stopped. I am an American with French residency, trying to get citizenship so I can give up the US citizenship, but that means integrating here, paying taxes here, learning the language, proving to them I 'deserve' it. I can't move around all year. And no matter what, somebody is going to want to tax you. One place is going to claim you as it's tax resident. You can't have 'none', even if you split your time evenly. You only get that FEIE if you are showing the US that you've paid taxes in your resident country. You don't get off just because you're not in the US. You show them your foreign tax returns. There are other exceptions to that as well but yeah... it's not as easy as "well I travel outside the US all year so I don't owe any US taxes!" Also... how many people can afford 3 homes? I can hardly pay rent on one. I tried going back and forth, US and France... you can't pay rent in two places unless you're earning a LOT of money. I was apartment hunting every 6 months. It's exhausting and wastes a lot of time. Also with pets. Very difficult with them, and for them. And things to put in storage, and the environmental consequences of traveling so much... anyway no, that's unrealistic, and not practical. My boyfriend is Dutch, has a job in Holland, and I try to spend some time there, but my visa won't allow me to live there. And he doesn't have a job that allows him to get away for very long. Even if I decided to drag my cat and all my belongings around everywhere, he couldn't join me. It's not at all practical for most people, and not what most people want to do. Running around the world to escape taxes, not able to have solid relationships, a garden, happy and healthy pets, any routine, go to school, have a job, have all of your things out of storage... no, I want to know, REALISTICALLY, how a person is supposed to do this.
@@nomadcapitalist Any you would recommend? I've been trying to figure this out for years, and was on your mailing list and all... I didn't earn enough money to qualify for financial advice, and still don't (half my income right now is being eaten by an IRS installment plan, I feel like I'm never going to escape...). I'm not open to moving around every 4 months, I want to live a normal life, but the US government makes that difficult.
@@kendalbrenneman - I understand your wish to not move around. I was just discussing his suggestion on how to get to $0 or near zero taxes. And, as an American, the easiest way is to either move to a tax-free jurisdiction, which typically don't fit our needs so well, or to do some moving around. This channel is not designed for people tight on money. It is designed for international entrepreneurs that can often save money by having two or more year-round residences. So, this is probably not the place to get your needs met at this time. Andrew isn't offering strategies on how to be low-income, stay in one place, and still avoid taxes.
However, if you want a low-cost version of this type of strategy, you could always rent a small apartment in Greece for $200/mo or just $2400/year. If you spent a few days less than a half the year there, as well as the same in France, you'd technically be able to get the FEIE.
I don't believe your statement " You only get that FEIE if you are showing the US that you've paid taxes in your resident country." is correct. If you look at the wording, the stipulation is not that you paid tax abroad but that you have a "tax home" in a foreign country.
"Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Having a "tax home" in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes."
www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-tax-home-in-foreign-country
Therefore, I believe that you could declare France your "tax home" yet as long as you are in France for less than 6 months per year, you won't need to pay taxes there, or in Greece (if you also had a flat there), nor in America up to the $106k.
If you have two long-term homes, you will feel a sense of community. You'll develop friends in both places. They'll even visit you when you are at the other place. Life will feel normal. It isn't any different from American snowbirds that fly down from Northern cities to Florida and Arizona in the winter to avoid the cold.
The US government has never asked me to provide any tax records from foreign governments as it is simply not required.
It sounds like you need to pay for professional help. As an accountant once told me about the repercussions of doing DIY tax strategies in the past, "you are being penny wise but pound foolish." Pay the $100-200 for the hour of their time and they'll set you up in the right direction to save you thousands. I used Randy and Jaime at www.ustaxinternational.com/. Americans living in Costa Rica who live and breathe FEIE. I actually went to their office, but you can do it by phone. The hour cost me $100 and it clarified everything for me and I haven't needed advice since. I use a "regular" American-based tax accountant to implement their strategy.
There are lots of other American tax accountants that live abroad with this expertise. US Embassy's often provide lists of them, including this one from the Embassy in Bangkok: photos.state.gov/libraries/thailand/231771/acs/tax_consultants.pdf
Again, pay for a consultation and let an expert navigate the situation for you.
I'm not sure if any of these strategies, however, will impact your IRS installment plan. That is possibly set in stone. But you do need to ask a pro. Bankruptcy might be the only way out of that. Here is some info on it: wassonthornhill.com/tax-season-consider-bankruptcy-even-if-you-are-in-a-payment-plan-with-the-irs/ Since you are abroad and likely don't need a high credit score in America anyway, bankruptcy might be ideal for you.
Not a hammock, looks more like a cabana.
For those who don't understand, he is saying you can save a lot more (the Federal tax) if you move outside of the US. He is not saying that you won't save State Income Tax. Federal is a lot more than State tax, so he is saying you will save a hell of lot more (140k federal), rather than just the smaller amount (30K state), for the individual he spoke about whose income was near 400K a year.
So for those who saved the 15K state tax, fantastic. But you also paid probably 5 times more (75K in Federal), using the scale of the example he had---but likely maybe 50k to 60K federal since you're in a in lower income tax bracket.
Hope this is helpful. Please see a tax advisor who can guide you into doing this properly, as foreign income could be taxable under current tax code.
This isn't it. You might as well move to a state without an income tax cause you'll be paying the federal income tax as long as you're a US citizen and if you leave to a different country you also have to pay their income tax too.
So it is effective to cut some money by leaving to a taxless state, but you're saying it's better to complicate things even more and live outside the US? I mean, yeah it is possible to manipulate loopholes and save, but that sounds a bit redicilous. Not everyone wants to leave the US
I thought you still had to pay taxes living outside the U.S. unless you renounce your citizenship.
Exactly, unless you renounce your US citizenship, lol.
Nobody wants to do that!
Florida home insurance just went up 30 percent 300-500 per month, HOA fees always go up add fines and restrictions 250-500 per month, car insurance the highest you will get rear ended buy a truck and a house cash with no HOA
???? Live in Nevada and left California. Homes are a fraction of California prices and easily 2 to 3 times bigger and taxes are a fraction of California.
Your commenting about Nevada not being a low tax state? I live in Nevada for 11 years now. I saved $2500K annually on property taxes when I left Mexifornia. I stopped paying 13.5% state income taxes leaving Mexifornia. My car registration is fast and easy without being smog tested on a dyno. My car and home insurance is 60% of what it cost me in California. I have maximum insured limits on all my various policy elements. Nevada is way cheaper than Texas, Florida or any other state without income taxes that you can find.
If I renounce my US citizenship am I still eligible to collect a military retirment income?
Nick Holmes
You have to keep a U.S. domicile for federal government purposes. Social security is the same way. Use your parents house
@@ztezmaxim2683 SS is not the same way. You can get your SS check deposited to your USA bank account or directly to your foreign bank account, if the country you live in has a tax treaty with the US. Not sure why you'd want to renounce, no advantage really.
Is that why hundreds of thousands of people leave California and NY to the best state in the US?
Ive been living in Kuwait for 11 years now. The first 109000 roughly for 2020, is exempt from US income taxes. This country has no taxes. So I'm onboard.
Because they tax their oil and that is enough money for them to keep everything going.
Vegas is getting very overcrowded and our rent is getting really high stop moving here.
I'm guessing that IF you are renting and NOT paying income tax you WILL come out ahead, as long as you are NOT paying too much in rent.
Florida has not state tax. Illinois has a 5% state tax. Florida has lower real-estate taxes. Lower taxes over all. Not sure what your talking about.
False. Florida has taxes and a lot of them. There is a 7% sales tax, property taxes have to be much higher due to lack of income tax. Licenses, car taxes, it goes on. It is about middle of the pack with tax burden, not the lowest. Its a bad place for low income people since the rich pay almost nothing and low income can end up going bankrupt paying taxes.
I agree Florida still has taxes, but other states have these Dmv and sales tax plus state taxes and high real-estate taxes
Move to Texas and agitate for Texit!
There isn’t shit to do in Texas lol they have fake beaches and there’s no entertainment in that state
According to the DOD Financial Management Regulation, Volume7B, chapter 6
First sentence states, "DOD Financial Management Regulation Volume 7B, Chapter 6 February 2009 CHAPTER 6 FOREIGN CITIZENSHIP AFTER RETIREMENT 0601 GENERAL APPLICATION 060101. The right to retired pay based on years of active service or disability for Regular or Reserve officers and Regular enlisted personnel generally is contingent upon continuation of their military status; loss of citizenship is inconsistent with a continuation of that status." Therefor you lose your citizenship, you for fit your retirement income.
You shouldn't use the word loophole
Unless you're talking about fortifications, then I agree. ;-)
Ummm why couldn’t you jus give a better state to move to as an example instead of jus sayin leavin USA ??????? Like that’s jus over board
If you're a consultant, sure live outside the US. If you are an employee of a us company, the only way that they can pay you is to have a business entity in the company you're trying to go to
I lived in Miami for 8 years. Because there is no state income tax, Companies pay you about 15% less money for salary. They call it the “sunshine tax”. You will not see any gain or savings as an employee. If you own a company or are self employed, your better off moving out of the country.
Texas has relatively high wages, especially compared to upper Midwest
The taxes are not even lower in Florida. There are states with income tax that have lower taxes. The no-income tax is good stuff is based on ignorance. The government gets its money one way or another. An income tax makes it so rich people have to pay more to keep taxes affordable for lower income people. In FL rich can pay almost nothing and poor are crippled.
@@jameskeefe1761 Only way to gauge is the index of overall tax burden. It is cheap state by comparison.
For retirees the local wages of any state are of no consequence. In contrast, a state's income tax rate and whether they tax retirement income are very relevant.
I'd like to live outside the US after I retire from the military but I think I'll lose my retirment check.
Nick Holmes
You won’t lose your retirement income. Many retired military persons live outside the US without losing their hard earned retirement income.
Ritch Goodson According to the DOD Financial Management Regulation, Volume7B, chapter 6
First sentence states, "DOD Financial Management Regulation Volume 7B, Chapter 6 February 2009 CHAPTER 6 FOREIGN CITIZENSHIP AFTER RETIREMENT 0601 GENERAL APPLICATION 060101. The right to retired pay based on years of active service or disability for Regular or Reserve officers and Regular enlisted personnel generally is contingent upon continuation of their military status; loss of citizenship is inconsistent with a continuation of that status." Therefor you lose your citizenship, you for fit your retirement income.
Hi, Nick. It sounds like you might be confusing things. What you put in your message implies that you lose benefits IF you GIVE UP your US citizenship. Living outside the US in and of itself does not mean you gave up citizenship. So if you remain a US citizen but have a US-based address for mailing purposes, you should be fine.
@@georgeklimes7604 Ye, find a state with low taxes like Alaska or South Dakota set up an address there. There's businesses that will handle your mail for you in South Dakota, cos a lot of nomads choose SD.
Not at all, plenty of people living outside the US while still collecting retirement.
Ultimately your absolutely right but I think a lot of people cant move outisde the US because of family. Its a lot easier just to move within the US then across the pond.
Move to TJ and drive up to San Diego
Great video! Thank you so much! Nobody will give you this types of information!
I know it’s not for every enteprenor to move outside the US, but definitely something to be considered if necessary! Great information!
Glad it was helpful!
So you are really talking about someone with a business. This really doesn't apply to retirees. I know your main focus is to help entrepreneurs, but would you consider doing a video to give retirees some ideas? I suspect you can't avoid federal tax in retirement if you live abroad and collect Social Security, or withdraw from you IRA's.
Correct, you will still pay fed tax on all US income, SS benefits (at least 85% of SS), and any RMD's from retirement accounts or pension distributions. But you won't pay any tax for that income in SOME foreign countries......deal is, you cannot work and make money in those foreign countries, or you'll either invalidate your visa, or pay tax on the foreign income, or you could get kicked out.
I agree completely.
For individual taxpayers, a no income tax state may not be better. There are states with lower taxes with an income tax, than Florida. No income tax does not mean low taxes. Especially if you are low income. If you are low income you could pay more in a no income tax state because they have to make the property taxes more in these states. This means a super wealthy person can get away with paying almost no taxes but a low income person can pay crippling taxes. FLs no income tax is NOT friendly for low or moderate income people. Florida also has strong charter counties and this can mean even more taxes since the counties can act like full fledged cities with city level spending and you may not be able to get away from it since it can be everywhere, rather than confined to city limits.
WA state is a good example of what's happening in a no income tax state. To generate higher property taxes on home owners, the state government mandated high density apartment construction in major cities and limited condo, townhouse and single family home development. This artificial scarcity of personal homes made prices skyrocket. Fewer people could qualify for loan to buy a house. My property tax tripled from $4,000 to over &12,000 a year.
This makes no sense to me. He would still have to pay federal taxes in California. How is this different than florida?
Homegrown Floridian, I ain't leaving Florida. Also why tf would I live internationally? Plus even if I lived in a state with an income tax and moved out of the country, I'd still get charged a state tax from the IRS lol.
Yup, he doesn't go into any details, lol
It isn't always just about $$. If you are homegrown and plan to die in the same place where you were born I feel very sorry for you. With the exception of beaches, FL lacks diversity from the landscape to the weather to the people (unless you love lots and lots of senior citizens everywhere). Get out and experience life. So sad about small minded people.
Eventually Nevada and Florida are going to get just as expensive as all of those high taxed states.
Recently in FL.. FL is sooo damn expensive.... Car insurance is HIGH.... hurricane central... economy depends way to much on tourism.... Grocery store food is HIGH... Gas HIGH..... Car registration HIGH... and the transplants in FL ain't nice, they always look angry--you speak to them, they look at ya like ya an UFO... You can have FL with its high cost of living and New England transplants...
Cesaria Rabearivelo It's better to retire abroad because there are a lot of places that have much cheaper housing, extremely low property taxes, better healthcare.
Cesaria Rabearivelo And Florida also has the worst drivers.
@@Zorazora1234 gosh those old people that move down here are not nice at all! In Georgia and SC they are usually so sweet
@@Eman1900O cuz most are from farther north.
If you move to another country then you have to renounce your citizenship to not pay federal taxes
and there is a calculated EXIT TAX
Typically, yes. Some folks can arrange things to make it work, but most would have to renounce. Still, you could remain US citizen (and taxpayer) and get foreign residency for reduced cost of living or lifestyle reasons.
Dublin, in Ireland? Ireland is cool, and it is very close to England and Scotland which are also very cool.
I wonder what a world would look like if no one paid any taxes at all?
Go to Dubai and see.
@@nomadcapitalist I will. Thanks for the suggestion. I heard it has some taxes though. Minute, but still not 100% tax free. I will go for sure. Keep the videos coming.
the irony is that florida and nevada have the lowest tax rate.
@@ALCAN52 ak's property tax is high
False. Floridas taxes are not the lowest, they are about in the middle of the states. No income tax means high property tax.
Whatever you do don't move to Seattle,Wa. You'll get hit from the front,back and sideways with taxes.Property taxes are going through the roof and they want you to pay per mile with your car soon on top of the regular gas taxes.We have one of the highest sales tax rates in the country.We don't have a State income tax but that can always change with the leadership in the state.Think ahead,research the political climate and trends in each state.The trends in Wa.State is higher and higher taxes for the foreseeable future.
Correct. Never move to WA State. In fact, LEAVE.
$400 Grand??😳
My husband and I only make $80 Grand together
Do you have friends and family in Bali?
That's one reason to stay in the USA.
As I am sure you have found out, money isn't everything.
good luck in a foreign court
Texas has outrageous property taxes. A person/family needs a very good salary to make it worth owning a home there, and even so the nicer the home the more property tax will be.
Then rent, don't buy, no home insurance, and no maintenance, and no HOA.
@@shkim103 What??? Hell no, rent more costly in the long run
@@coreyt4006 Yeah, renting is bs. It's about double or triple a house payment nowadays. Plus dealing with a bad landlord is not worth it.
But with the lower cost of housing in TX, most folks from CA, for example, will still be much better off.
Nevada suck I live here and bad water here and very Dry here and cost living cost lot in Nevada and sells tax here in sparks is 8.27 more then ca where I was from and No trees or grass ugly place live I’m going back NorCal real soon
Good, you do that.
Naaaa....not moving to some other country.
Florida sales tax is just 6% also which is 30-4%+ less than Ca, NY etc.. FL state gets huge taxes that tourists leave behind who do not use services like schools (Disney etc.) Housing is much more affordable than most of NY and CA.
Proiperty taxes are high however you neglect to mention. The lack of income tax means you get hosed on the property tax and the county has to raise taxes on the poor who cant absorb or they have to cut services that aid the poor, all while the rich pay virtually nothing. Its a nasty environment for low income workers.
PS Its probably cheaper than New York but very poor comparison. Its probably quite a bit more than GA, AL, or KY.
Wherever we live shouldn't we all pay our FAIR share? It's' illegal to evade taxes.
Don't confuse "fair share" with funding waste, incompetence and corruption.
@@llibressal I do have concerns about that. I do believe tax money is often squandered.
Good ideas if you are in good health and young. If you are in poor health or old, consider how good the medical care in your new country is. Saving money on federal taxes has no value if you die because you could not get to a good doctor in time. COVID has complicated things too. If you cross a border, you will be required to be PCR tested and possibly quarantined for 10-20 days. In China, you may be locked down just for being in a city where COVID is detected. So medical issues must be considered.
Thumbs down for the click bait title and this video having fuck all to do with Nevada or Florida taxation.
There is a lot you are leaving out regarding doing business in Florida. Florida's "no state income tax" is the ONLY benefit you are focusing on. The state’s favorable business tax structure, government policies and competitive costs make planning for future growth easy. Florida consistently ranks among the best states for business, thanks to its pro-business state tax policies, competitive cost of doing business and streamlined regulatory environment. The state is proud of its welcoming business climate and competitive advantages. Some other important factors you left out...
Business-friendly Government
Florida’s government and economic development leaders work together to ensure that the state’s business climate remains favorable to companies of all sizes, including some of the nation’s leading corporations. Florida is working on legislative, fiscal and marketplace initiatives such as insurance tort reform, targeted industry incentives and many more. Florida is also a right-to-work state.
Competitive Cost of Doing Business
Florida offers a cost-efficient alternative to other competitive high-tech states. Put simply, land, labor, and capital are more affordable in Florida than in California or New York, for example. In addition, for businesses in certain targeted industries or specialized locations, the state offers additional financial incentives. Businesses looking for workforce training, road infrastructure or specialized locations may also qualify for specific incentive programs.
Pro-Business Tax Structure
Business dollars go a lot farther in Florida given the state’s tax advantages, tax exemptions and no state personal income tax. Businesses thrive in this low-tax environment, and employees enjoy the benefit of no personal income tax.
Expedited Permitting
Florida understands that businesses need certainty, predictability and efficiency in government regulations. The state’s regulatory agencies and local governments provide quicker, less costly and more predictable permitting processes for significant economic development projects without reducing environmental standards.
Available Resources
Florida offers growing businesses access to capital from private, state, federal and other sources. The state has implemented capital formation initiatives, such as the Florida Opportunity Fund, and economic gardening programs that help Florida businesses expand by offering specialized services such as market information, leadership development, and business management tools.
Countries with fewer regulations and zero taxes are even more favorable.
Much of what you say is wrong. It is not a panacea if you are a small business. Local governments are little dictatorships. Massive zoning regulations and fees and its hard to get any small business started. Its much worse for employees. Its a terrible environment for employees especially of more moderate means. If someone is trying to get their life back on track I would not recommend moving there. It makes it hard as possible on people of modest means. This is because they have to make up for lack of income tax with more property taxes and unless you are homeless you pay property taxes even if you rent. The rich love it because they can pay basically no taxes but the low income people are hosed. Extremely backwards and obscenely brutal taxation environment, broken unemployment systems, not a good place!
@@jameskeefe1761 I live GREAT on a low income in Florida. ZERO (0%) State Income is NOT brutal LOL James. It's the exact opposite. Zero taxes is better than any tax. We do NOT have any local "city" tax either. NO car emissions stickers to pay for. Poor people pay LESS or ZERO taxes compared to HIGH TAX Democrat-run states
Florida also has a Homestead Exemption on your residential home, which LOWERS property tax. I am paying only $400 a year ($33/month) in property ta., That's it!
When I left Pennsylvania in 1990s, I was paying $600 in property tax on a house worth $10,000. Florida is much lower taxes for low-income people. I bought my condo while working a minimum wage job. I worked with two girls in their 20s who BOUGHT their own houses in 2000.
#2) Florida is actually OPEN for business NOW! Unlike other "Totalitarian Regime" states led by "Covid Dictators" in NY, CA, MI, PA, OH, there is a pro-business freedom here in Florida. That is just a fact.
Small businesses are OPEN in Florida, Restaurants are OPEN in Florida, Beaches are OPEN in Florida. That is why so many people are LEAVING Democrat "lockdown" states of New York, California and other Democrat "Dictatorships".
@James Keefe, you don't sound like you live here. You do not know what you are talking about regarding Florida.
You do not understand the concept of FREEDOM and OPPORTUNITY. That is what is plentiful and available in Florida right now, and other desirable Republican states like Texas.
You have to make the effort in life. Food doesn't plant itself.
Open Businesses=Jobs.
Unemployment is going DOWN. (Low 6%) after Covid.
Research is important when starting a business. There is a lot of small business grant money ($5000) is you look and apply.
@@JCGFL Wow you have engulfed the entire Desantis fake talking points about FL. Your comments about politics show everything you say or think are via a political lense. FL was locked down like every other state but opened up earlier. The question which you Reps tend to always ignore is how many deaths and illness did you sacrifice for opening up early? Even now FL has the most number of people admitted to ER because of Covid. Both FL and TX are the cesspool of the entire country when it comes to freedom and people's rights. It is not "freedom" when women do not have body autonomy. It is not freedom when books are taken off the shelves. It is not freedom when black residents are told they can vote and are then arrested for voting. It is not freedom when performers are not allowed to perform . It is not freedom when duly elected school board members AND state prosecutors are removed from office by Desantis and replace with his own goon. Finally it is not freedom when a private business (Disney) is harassed repeatedly because of their stance on a given subject matter. YOU are obviously an American and have never actually experienced totalitarianism, communism and dictatorship; I have and what is happening in FL in eerily similar to them. Please educate yourself on world history in which case you will have to switch away from FoxNews.
(FYI-Florida, Washington, Nevada, Washington and New Hampshire were among the 20 most expensive states to live in, according to 2021 data compiled by the Council for Community & Economic Research).
Your idea is not practical for most Americans
Keep your income here!
Keep watching the video for details.
Boolshit. I’m glad i moved my business to Nevada. The best decision
Sounds like hyperbole. He never explains how one can get effective tax rate on capital come well below 20% while not simultaneously taking on unquantifiable geo-political risks. For true capitalists who have only capital incomes, US tax rate for residents in no-state-income-tax states tops out at 23.8%. Not terribly high among comparable countries.
Not only do you pay no state tax but property taxes are lower and no taxes on food unless they are prepared. This is BS.
Property Taxes are high in Texas about double of what we pay in a high tax state.
Property taxes are not lower. It depends on the county but it is not a low tax state. There are states with income tax that have lower taxes.
All good. Especially now it applies.
bullshi
This dude makes a video about states with no income tax, but doesn’t even do his research to know exactly how many are there? Why would I waste my time watching this shit?
HELP ME GRT TO WHERE MY UYR OLD SYNDROME LITTLE GIRL LIVES THAT TIPE OF LIFE THAT IS WORTH LIVING SO IT MAY KEEP MY LITTLE GIRL FOR AS LONG AS GOD LEAVES HER WITH ME.SO SHE WANTS WANTS WANTS TO LIVE LIVE LONGER FIGHT TO LIVE SUCH LIFE THAT IN THE END I WOULD CHOOSE WHAT GOD GIDES ME . BUT SHE DESERVES SUCH LIFE. MONEY WEALTH POWER .SINCE HER LIFE IS THE ONE THAT MAY BE CONTINUOUSLY SICK AND POSSIBLY VERY SHORT. SHE SHOULD GET THE REST. SOMEONE OR MY GOD HELP HE GIVE HER WHAT WOULD BE SUCH MIRACLE
what...
Best life in Mexico 🇲🇽 it’s called paradise for a reason 👏🏻
0:50 I stopped listening at _"I think there are 10 or 11 of them"_ No, there are exactly 7.
You're supposed to be some kind of financial business consultant guru or whatever, how the hell do you miss by so much?
No thanks... I dont want to surrender my american citizenship.
ok so basically your solution is to move to the biggest muslim country in world and 8000 miles from home! wow...good job...you're a boss