If you live there, pass an IRS means test, and start a business that employs a minimum of 6 local citizens, you are entitled to a 90% reduction of your US Federal tax liability. If you simply live there, zero benefit.
Trader KGB: Thanks for your posts on this topic. They are obviously well-informed--and for me, quite thought-provoking.
imo-not going to work,if you trade US market from your personal accounts(might work for your corporation offshore) http://www.irs.gov/taxtopics/tc851.html http://www.irs.gov/businesses/small/international/article/0,,id=96493,00.html but wait...there is more for green card holders: You are a U.S. resident for tax purposes beginning on the first day you are present in the U.S. as a lawful permanent resident. As a resident taxpayer you must report, for U.S. tax purposes, your worldwide income. http://www.thetaxguy.com/residency.htm
for an american citizen it does not matter where in the world you live if you earn money you have to pay U.S.taxes if you have an account with more than 10k in it you have to file an FBAR,failure to do so is a felony offense. if you renouce U.S. citizenship, very difficult to do them can audit up to 10 years after you do it. those are the facts if you do anything else but report your income they make you into a felon.spain,vietnam,cambodia and other nations did not return you for tax evasion.good luck
I should point out that I'm looking for an income tax-free living without breaking any laws. I realize there are many ways to skirt taxes - but then you're left looking over your shoulder at every turn. This is not what I'm looking for. I want to know if it is possible - in this world - to be a law abiding citizen that doesn't have to line the pockets of its government.
As long as you can still be classified as a nonresident alien, the IRS says you're in the clear: "Even if you meet the substantial presence test, you can be treated as a nonresident alien if you are present in the United States for fewer than 183 days during the current calendar year, you maintain a tax home in a foreign country during the year, and you have a closer connection to that country than to the United States." I guess it comes down to how they define "closer connection". Could it be as simple as owning off-shore and renting on-shore? An off-shore business? Guess that's one for the lawyers.. I merely throw this out there for the fun of discussion. I don't think anyone seriously considering renouncing would attempt to stay in the US thereafter (though it appears possible to do for part of the year with careful planning).