“Kathleen, thanks for the reporting on Belize. We’re trying to find someplace where we can protect our young girls and where it’s more like the 1950s, where so much of what’s going on here in the United States is not constantly pushed in their faces.
“We adopted our daughters in Ukraine three-and-a-half years ago. We know there is evil (whatever one defines that as being) everywhere in the world, but we are longing for a simpler time and place, where the family, elders, and education are valued.”
–Summer B., United States
Belize sounds like it could be a perfect fit for you.
“Kathleen, I hope you receive this message. I would like to attend your upcoming Belize conference in March, but I am wondering if I made the correct choice in obtaining a QRP in this country. I am questioning my decision based on the new FATCA law. I am unclear about how this impacts Belize. Will they be adhering to this new U.S. law? If so, will this affect bank deposits prior to January 2013? In other words, will deposits made prior to January 2013 be subject to 30% tax withholding.
“Please understand that I am not doing anything illegal, but I value my privacy and I am looking for less government bureaucracy, not more. That’s why I chose to retire in Belize.”
–David D., United States
Belize banks are all likely to comply with the IRS reporting requirements under FATCA. In reality, you (that is, everyone) will want a compliant bank wherever you go overseas so that you don’t have to give the U.S. government a loan of 30% of the money you send out of the States.
You’re meant to report your bank account in Belize or anywhere if the balance exceeds US$10,000 during a calendar year anyway. The new rules just give the IRS a way to crosscheck that everyone is reporting properly.
There is no way for an American moving overseas to escape FATCA and the associated reporting requirements. Belize or elsewhere, it doesn’t matter. And it’s not the point. You don’t want to choose a place to live or retire based on FATCA. Choose where you want to live or retire…and, separately, simultaneously, put a plan in place for diversifying your assets and interests so that FATCA doesn’t matter for you.