“Kathleen, I love your new book “How to Retire Overseas“!”
— Lu J., United States
***
“Thanks to Lief for the ‘Happy Tax Day’ article. That is the best simple explanation of these issues that I have seen.”
— Elmore S., Panama Circle Member, United States
***
“Kathleen, I want to see if you can help me with something I am about to do. I am a citizen of the United States living in the Philippines where I have a home, a Filipino wife, and two boys. If I decide to start a business in the Philippines, will I have to pay taxes there and to the United States, too? If my business is in the Philippines and does not have anything to do with the United States, would I still owe U.S. taxes? I’m afraid that, if I must pay taxes in both countries, then I will not have enough left over to even bother with the business in the first place.”
— George D.S., Philippines
I am not an international tax expert, and I strongly recommend you seek help from one before making a big investment of time or money to launch the new business you’re imagining.
That said, here’s a suggestion: You could set up an offshore corporation for your Philippines business that would qualify for deferred taxation in the United States until any profits are paid out of the company to you personally.
Again, you should have a conversation with an advisor focused on these kinds of issues. However, the good news is that the issue you’re worried about isn’t as dire as you fear, and, yes, it should be possible for you to avoid and defer U.S. taxes with a proper corporate structure.
Continue Reading: Real Estate In Brazil
