Tag Archives: Going Offshore

What the Fiscal Cliff Deal Means For Americans Living in Panama

This week’s Offshore Living LetterLive and Invest in Panama by Lief Simon offerred up some very interesting facts about the Fiscal Cliff Deal that many American’s likely don’t know about. It just illustrates that the opportunities for American’s Living in Panama keep getting better! Special guest columnist to OFL, Christian Reevesaddresses the particulars of the eleventh hour fiscal cliff deal –

The very good news for the Americans living abroad: The Foreign Earned Income Exclusion (FEIE) survived and even got a little bump up for the cost of living. If you are living and working abroad, you can exempt up to US$97,600 from taxes in 2013, up from US$95,100 in 2012.

Also, the self-employed expat can avoid unemployment, Social Security, and FICA tax increases (also called self-employment taxes) by incorporating offshore and qualifying for the FEIE. By operating your business through an offshore corporation, you might be able to eliminate these taxes completely, which would amount to a savings of about 15%.

Note, though, that the 2013 tax increases and phase-outs will apply to any ordinary income over US$97,600 and all passive/investment income.

Because the tax brackets ignore the FEIE and expats are taxed on their worldwide capital gains (now at 20% rather than 15%), many higher-earning Americans abroad could be shocked by their 2013 tax bill.

The self-employed overseas, though, have a number of planning opportunities. For example, you could retain earnings over the FEIE amount in your offshore corporation or use a Solo 401-K to shelter income in a retirement plan.

The overseas investor could make tax-advantaged investments through your IRA, thereby avoiding the 20% short-term capital gains tax. In fact, the sophisticated offshore IRA investor can avail of a number of tax advantages – just ask Mitt Romney.

Christian Reeves

 

Two Easy Steps To Escape Fiscal Cliffs And Other Government Incompetence

All around, the news these days is bad. But I don’t need to remind you of that. You’re a grown-up. You know as well as I the state of the world right now.

What you may not know is how to pull yourself out of this mess and take control of your own future. How can you make sure you and your family are ok, no matter what the rest of the world decides to do?

It comes down to two simple steps that I’d like to invite you to take starting today.

Full details are here.
Offshore Living Newsletter



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The information expressed here is solely the opinion of the author. Nothing on this web site or in subsequent communications is to be considered personalized investment advice. Although we may answer your general questions, we are not licensed under securities laws to address your particular investment situation. No communication by any associate or representative of Learn About Panama is to be deemed as personalized investment advice.

Final 24 Hours: Save US$250 Per Person At This Year’s Offshore Summit

The window is closing for the Early Bird Discount for my Emergency Offshore Summit. While the Early Bird Discount remains in effect, you’ll save US$250 per person toward the cost of registration. Scheduled for next month, the event is slated to give you enough time to get all of your finances in shape before the… Continue Reading

Panama Residency and a Work Permit too!

Here’s the most important thing to understand about the “offshore world”: The rules can (and do) change fast. You can’t assume you understand something today (to do with establishing residency, obtaining citizenship, opening a bank account, etc.) because you researched it a month or two ago. The new “Specific Countries” residency permit that Panama’s President… Continue Reading

Going Offshore – Diversify Your Life And Protect Your Assets

Learn How: Diversify Your Life And Protect Yourself And Your Family From Government Intrusion Going offshore simply means doing something outside your home jurisdiction. There’s nothing nefarious about it. All we’re talking about is global diversification, not only of your investments, but of your life. You wouldn’t trust one stock with all of your investment… Continue Reading

More loss of Civil rights in the United States

It’s called Incremental Degradation… Civil rights took another hit in the United States last week, as the incremental degradation of the average American’s right to privacy marches on. Last week, Obama signed new guidelines allowing the “intelligence” community to retain electronic data believed potentially useful in the “War on Terrorism” for five full years (up from… Continue Reading

Live Tax-Free (Legally)

Protect What’s Yours And Live Tax-Free (Legally) It’s time to defend what’s rightfully yours. Like many North-Americans, you may already have seen your nest egg shrink, the value of your home fall, your investment portfolio lose half its worth or more… The really bad news is that there’s more hardship to come… In the U.S.… Continue Reading