8 out of 10 millionaires in the United States are self-made. That means their wealth is a product of their own hard work, business acumen and innovation in a fiercely competitive free market. But the US is a country that punishes your economic contributions rather than rewarding them.
If you’re an American who happens to earn 6 figures or more, you can expect to give up 30% of your income in taxes. That’s a huge chunk of your hard-earned money that you’ll never get to see.
And while most countries tax only their residents, the US is one of the few countries in the world that taxes its citizens no matter where they live. Therefore, US expats are often subject to double taxation – both in the US and in their country of residence.
The introduction of laws like FATCA – the Foreign Account Tax Compliance Act – have worsened the situation for Americans. Under FATCA, foreign financial institutions holding assets for US citizens are obliged to report their accounts to the US Department of Treasury. This has created an enormous cost headache for foreign banks, who have since decided not to open accounts for American expats, making their lives difficult abroad.
That’s why nearly 1 in 4 American expats are seriously considering renouncing their US citizenship. Over the past 2 years, a record breaking 11,800 Americans have already renounced it.
If the US tax system has become a nuisance to you as well, why not move somewhere you’re valued as a citizen?
Certain countries have opened their borders and are waiting to welcome new citizens – countries with lower tax rates than the US and opportunities for doing business on your own terms. All you need to do is invest in their economy and they’ll offer you citizenship or residency in return.
European nations like Malta and Montenegro offer highly attractive citizenship by investment programs, with Portugal’s Golden Visa – starting at just €280,000 – also offering a path to EU permanent residency. And with the US Dollar now below parity with the Euro, this is the perfect time to invest.
Here’s how these programs work: with an investment or donation into the economy of the host country, you can legally obtain a second citizenship or residency in a matter of months. This is much faster than the traditional immigration process which can take several years. This way, you’re never putting your life on hold.
“The American Dream is all about the opportunity for prosperity and success. But once you get there, like most self-made, hardworking Americans, the very thing which enabled your success is also haunting you and pushing you to renounce your US citizenship,” shares Milos Stojanovic, Chief Operating Officer of Arton Capital. “Citizenship by Investment, or as I like to call it, Citizenship by Choice is the obvious solution,” adds Stojanovic.
Countries that offer CBI programs have some of the strongest passports in the world, giving you visa-free access to over 160 countries including the Schengen Area. So, your global mobility does not take a hit.
If you invest in countries that are part of the EU, you can effectively become an EU citizen, which gives you settlement rights in all 27 EU countries – allowing you to work, set up a business, and give your children some of best education and healthcare in the world.
And the biggest reason to invest in a second citizenship is to take advantage of the favourable tax regimes. Most countries that offer second citizenship have lower tax rates than the US – sometimes even close to zero percent tax – meaning that you’re able to keep more of your income and maintain a higher standard of living.
At times, you are not subject to capital gains and inheritance tax either, allowing you to fully enjoy your return on investment. Plus, some countries only tax income earned within that country, letting you retain your worldwide income.
Unlike the US, you’ll also only pay taxes if you become a tax resident – which means that if you spend most of the year outside your country of citizenship, you are not liable to pay taxes. This allows you to live tax free anywhere in the world.
So, ask yourself – is the American Dream really worth living? Take charge of your income, wealth and life, and move to a place where you can live on your own terms.
Through a bespoke and seamless service experience, Arton Capital empowers you with a second citizenship and helps you realise the life you want to live.
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