Permanent traveller - residency options?

[Joct]

Yes, another permanent traveller with a tax residency question. I've spent plenty of time reading here and elsewhere and now suffer some analysis paralysis. We all have slightly different stories.

Background

• Australian born citizen and naturalised US citizen.
• I have been a US tax resident for just over a decade.
• I plan to renounce my US citizenship shortly.
• No real estate, car, etc., is owned in Australia.
• I visit regularly to keep my mother happy, see friends and enjoy the beaches.

Goals

• To continue chasing the sun and spend a few days to a few months in each location.
• I don't want to default to being an Australian tax resident.
• I prefer not owning real estate.
• Minimal physical presence to gain and maintain the tax resident status.
• For the next 1-2 years, I plan to mainly explore parts of Europe with other trips to avoid the winter weather.
• Ideally, a low tax environment and not looking for the (mythical?) not be a tax resident anywhere nomad lifestyle.
• Investigate new opportunities not available to US citizens.

Income

• 99% of my income is capital gains from options and futures trading.
• I usually have a few other projects on the go as well. However, income is not material and more about learning new things by doing rather than earning income.
• I'm looking at other trading opportunities, such as crypto.
• Annual income USD100k upwards.

Other

• I would be willing to postpone the 1-2 year plan and stay longer in one location to establish residency if it allows me to travel and maintain the same.
• I've looked at the Montenegro residency by company option, among others. The coastal areas of Montenegro and Croatia suit my lifestyle, except for the winter months. I'm unsure about the time to live there and the official versus actual requirements.
• I don't need Amazon next day delivery, pumpkin spice lattes, etc. I need infrastructure such as reasonable internet, electricity most of the time, and access to flights.

I'm looking to devise a plan, in line with the goals above, for once I have given up US citizenship. It would be a bonus if you could suggest things to look out for in the renunciation process other than the obvious ones (cost, exit taxes, etc.) listed in the puff pieces by people trying to sell their relocation services to unhappy US people. Thanks!

 

[Martin Everson]

Yes, another permanent traveller with a tax residency question.

Ok.

It would be a bonus if you could suggest things to look out for in the renunciation process other than the obvious ones (cost, exit taxes, etc.) listed in the puff pieces by people trying to sell their relocation services to unhappy US people.

Did I miss the tax residency question?

Maybe some has some input on possible gotcha's of renunciation but I would probably request your Rap Sheet just before renunciation (or after if possible) and keep in your records to show you were a good American. I know certain countries I have lived in have asked for criminal record check for i.e last 10 years.

https://www.fbi.gov/how-we-can-help...d-information/identity-history-summary-checks

 

[Joct]

Did I miss the tax residency question?

Fair enough, not a single question mark in my post. Based on my goals and other information above, what are some options/suggestions for getting a new tax residence?

Maybe some has some input on possible gotcha's of renunciation but I would probably request your Rap Sheet just before renunciation (or after if possible) and keep in your records to show you were a good American. I know certain countries I have lived in have asked for criminal record check for i.e last 10 years.

https://www.fbi.gov/how-we-can-help...d-information/identity-history-summary-checks

Thanks. I should have done this prior to leaving. I will check of the fingerprint part can be done at one of the embassies.

 

[JackAlabama]

Fair enough, not a single question mark in my post. Based on my goals and other information above, what are some options/suggestions for getting a new tax residence?

Many don't need this, but in your case (oz and us involvement) Id better get some decent option.

Thanks. I should have done this prior to leaving. I will check of the fingerprint part can be done at one of the embassies.

 

[intlman]

• I plan to renounce my US citizenship shortly.

Is that really the best option? Can't you leverage the FEIE and other strategies to minimise your tax? Your tax status is then super clear, as a DN gallivanting around the world.

I don't want to default to being an Australian tax resident.

I'm fairly certain that if you renounce, you will then be considered an Australian tax resident if you don't take up residency elsewhere. But you could probably fly under the radar for a while, considering you've been out of the Australian system for a decade.

• I prefer not owning real estate.

Especially Australian real estate. That's a ponzi that's going to end very badly (NZ real estate is following a similar trajectory too).

• Minimal physical presence to gain and maintain the tax resident status.
• For the next 1-2 years, I plan to mainly explore parts of Europe with other trips to avoid the winter weather.

Europe is slowly becoming a hellhole, so best to see it now before it totally disintegrates.

• Ideally, a low tax environment and not looking for the (mythical?) not be a tax resident anywhere nomad lifestyle.

Lots of options have been discussed on this forum. Tax resident of no-where is certainly doable, but it might raise some questions further down the line. It's always good to have substance somewhere.

• Investigate new opportunities not available to US citizens.

Yes, in that case renunciation makes sense.

 

[wellington]

If you are earning 100k a year plus just buy citizenship and renounce all western citizenships

Note when you leave the US citizenship you still have to file for 10 yrs

Oh and best to steer clear of western states because when the draft comes you’ll be shipped off - best to spend time in and around questionable non vassals that way they don’t trust you so you don’t get drafted - see WW2 and post WW2 Cold War as an example

Even better if you shack up with a ethnic Chinese chick - lol

They ain’t giving a Tommy to someone that may turn it on them lol

* if they were to give me one I’d start a revolution roflmao

 

[Joct]

Is that really the best option? Can't you leverage the FEIE and other strategies to minimise your tax? Your tax status is then super clear, as a DN gallivanting around the world.


I'm fairly certain that if you renounce, you will then be considered an Australian tax resident if you don't take up residency elsewhere. But you could probably fly under the radar for a while, considering you've been out of the Australian system for a decade.


Especially Australian real estate. That's a ponzi that's going to end very badly (NZ real estate is following a similar trajectory too).


Europe is slowly becoming a hellhole, so best to see it now before it totally disintegrates.


Lots of options have been discussed on this forum. Tax resident of no-where is certainly doable, but it might raise some questions further down the line. It's always good to have substance somewhere.


Yes, in that case renunciation makes sense.

At the moment, my trading income is considered passive. I am not day trading. So I don't believe it falls within the FEIE scope. I'd also need to go with a foreign labour company setup to avoid the social security tax. That's a place I definitely don't want to be putting any money.

Because I need brokerage accounts and a certain amount of banking, it seems tough these days to maintain, let alone open, some accounts without providing KYC details. Add in CRS and I don't want to get a nasty surprise on one of my visits back to Australia.

At the end of the day however, a lot of the decision is based on opportunities for non-US citizens. It hasn't been an easy or quick decision.

If you are earning 100k a year plus just buy citizenship and renounce all western citizenships

Note when you leave the US citizenship you still have to file for 10 yrs

Oh and best to steer clear of western states because when the draft comes you’ll be shipped off - best to spend time in and around questionable non vassals that way they don’t trust you so you don’t get drafted - see WW2 and post WW2 Cold War as an example

Even better if you shack up with a ethnic Chinese chick - lol

They ain’t giving a Tommy to someone that may turn it on them lol

* if they were to give me one I’d start a revolution roflmao

Do you mean file a tax return for 10 years or some other form? Do you have a source link for me to check further? My understanding is once you have done the consulate/embassy part then a final tax return (plus FinCEN form 114) and form 8854 is the extent of things. Provided all previous tax returns have been filed.

I don't expect to ever give up my Australian citizenship. I like my visits back there and probably appreciate the country more since I left. I didn't leave because I didn't like it there. I left to see more of the world. That said, I have looked at the various CBI programs and don't see enough benefit at the moment.

Pretty sure I am old enough to not worry about being drafted.

I probably don't share the same level of doom and gloom about parts of the world as you. The good thing with being a permanent traveller is when I don't enjoy a place, I leave. I stick to things I can control and influence. Geopolitics and similar are not those things.

 

[Cloudbanck]

Do you mean file a tax return for 10 years or some other form? Do you have a source link for me to check further? My understanding is once you have done the consulate/embassy part then a final tax return (plus FinCEN form 114) and form 8854 is the extent of things. Provided all previous tax returns have been filed.

Yeah the tax return with form 8854 is the final US tax return if one renounces US citizenship. After this US authorities can still go after you for taxes that should have been paid before you renounced (like what happened to Roger Ver), but there is no requirement to file any further US tax returns. Unless I guess you have US sourced income.

More info here Renouncing U.S. citizenship

 

[Joct]

Yeah the tax return with form 8854 is the final US tax return if one renounces US citizenship. After this US authorities can still go after you for taxes that should have been paid before you renounced (like what happened to Roger Ver), but there is no requirement to file any further US tax returns. Unless I guess you have US sourced income.

More info here Renouncing U.S. citizenship

Thanks, yes that is my understanding as well and that link was one I looked at in addition to some IRS pages.

Now I just need them to speed up the rumoured reduction of the $2350 fee back to something more reasonable. Not holding my breath though.