Expatriation appeals to many U.S. entrepreneurs who tire of the restrictions and regulations they're forced to deal with in their home country.
Politics plays a huge role in the way people do business, and it can stifle productivity in professional and personal settings alike.
Here are some of the ways that expatriating helps these individuals benefit from legislation and services that are more conducive to their investment strategies.
Safeguarding Your Assets
Asset protection is one of the major motivators that prompts investors to move to foreign countries. By investing their assets in overseas financial products, these individuals can keep them safe from creditors, tax collectors and other parties without doing anything untoward or illegal.
In addition, overseas financial institutions may provide people with access to opportunities that they couldn't usually invest in back home. For those who hope to move their businesses offshore, the ability to invest in the same market is a significant boon.
Building Better Businesses
Changing tax regulations and healthcare legislation has huge effects on business entities. In some cases, moving the bulk of your operations to a foreign locale is the easiest way to build a profitable business structure. In addition, insurer-recognized medical tourism opportunities make it much easier for employers to adhere to U.S. laws even as they maintain staff in other areas.
Many nations also spend a lot of time and resources promoting business investment. While certain areas of the United States do this on a nominal basis, the fact that many such locales can fall back on government aid if their business sectors lag may make them less motivated to actually create a legislative environment that is conducive to business expansion.
Foreign countries with growing market sectors are more proactive because the business investments they receive benefit their communities and economies to a greater degree. Nations such as Belize, the Cayman Islands and Nicaragua have created legislation specifically tailored to expat business investors.
Prepping for the Future
One often-overlooked reason that people become expats is the fact that they hope to retire someday. Moving to a country with a nicer climate or a better healthcare system may help these individuals enjoy their old age in peace.
By expatriating before retiring, investors can adjust to the local culture and put their money into property and other locally-held assets. This is a good way to prepare for a comfortable retirement in advance, and it also helps people leave their options open. Gaining familiarity with other countries and their markets is a great way to discover new investment opportunities and ways to manage your money.
It only takes one well-intentioned IRS inspector to ruin your investment strategies by accusing you of not adhering to the law. Expatriating and investing in nations that allow you to hold on to more of your money in full compliance with U.S. regulations may make it easier to build a business, provide for your loved ones or retire in the future. Learn more about how an asset protection attorney can point you in the right direction by visiting Nagel Law online.
IRS Circular 230 Notice: The Statements contained herein are not intended to and do not constitute an opinion as to any tax or other matter. They are not intended or written to be used, and may not be relied upon, by you or any other person for the purpose of avoiding penalties that may be imposed under any U.S. Federal tax laws or otherwise.