Quote:
Originally Posted by Humpy Leftnut
Great posts Greywolf, where else is good if you're going to move?
I think a lot of US webmasters are going to want out pretty soon, if they're not already thinking of it already. Are the Canadian taxes really that bad or what? Seems like we have good hosting here, less backwards laws, no huge lobbyists, and obviously solid banking... But higher taxes? How much would you save going somewhere south?
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As far as where else to move to - this should really be the first consideration (after isolating the various non-tax areas). It's really a personal thing and probably based on what interests an emigrant may have.
Most Caribbean and Latin American areas will offer plenty "erotic life" - stuff like beaches etc. Personally, I kinda like the Caribbean islands and had a good time there. Each island is geographically different and the people are very friendly (keep Jamaica out for the moment - it's not an "offshore" and also Caymen - that can hardly be called an offshore any longer.)
In Central America there are two countries which could be candidates - Panama and Costa Rica. Panama has more slight benefits from a biz angle. Costa Rica is not a "true offshore" country, but there are no taxes on foreign earnings (eg net-related income) and the lifestyle is good in both these countries. Both Panama and Costa Rica have the roughly same temperatures and these are all year round (in both the rainy and dry seasons). Costa Rica has more "eco" activity and is prob one of the richest countries in the world for this. Both Panama and Costa Rica have plenty beaches.
There could be a case made (in squizzel's situation) for living in Costa Rica for a lifestyle angle and having a corp in Panama - basically the "playground" is Costa Rica and the biz element comes from Panama. (In practice, there would not normally be a need to visit Panama for any biz - tho it's only a short flying time away).
We still have biz based on the Caribbean islands, but also in central America. Two of the reasons for moving from the islands was because of hurricane activity and also get access to the benefits of a larger land base. Hurricanes are part of island life and no biggie (they can be a "fun experience" for a while, but that wears off! *s*) There are no hurricanes in either Panama or Costa Rica.
Unfortunately US webmasters have a problem by moving to exotic locations - the main one being the obligation to file taxes annually to the US while they are resident elsewhere. But - there is some compensation in that the IRS will give an $80K foreign resident allowance. For most other webmasters, this is not a problem - there is no requirement to file taxes back to their home country when they are resident elsewhere.
You mentioned Canadian webmasters - there are a fair number of Canadian citizens resident on both the Caribbean islands and in Central America - it must be the warmer climates attracting em - as well as other benefits
Suppose the answer to "how much do folks save" is - whatever they pay in taxes - plus the time spent on accounting for these taxes. There are also not usually any need for "clever schemes" to reduced taxation - little point if there is no corp or personal taxation
On laws - my guide is "Observe the laws of the country where you are a resident". In most of the regions mentioned, these laws are fairly liberal and easy to comply with - nobody is going to create a fuss over trivia. There are some laws which are fairly strict and these are usually in the area of "rights of individuals" and "privacy of doing business". Example... if a bank or lawyer gave information about a client to a third party - this can cause them serious damage - and possibly a jail term. But generally the laws are fewer and far less chance of contravening them. At the same time - tho only my
worth - would not do anything elsewhere that I would not do back in my home country. In a way, you are a guest in whatever location - and it's just a matter of respecting their laws.
Just thinking of legal implications on 2257... If a webmaster is not a US citizen and does not host or operate a biz in US territory and that webmaster is resident in eg the Caribbean or Centro America - there is no requirement to comply with 2257 and the judical system in these countries will not accept any challenges.
If a webmaster is a US citizen, tho he/she may not have hosting or any biz in the US, but is resident in eg Panama - there would still be a requirement to comply with US law. This is one weird scenario
Example - if my "home country" created 2257 - there would be no obligation to comply with that if I was resident elsewhere. Seems it's the exact opposite for US citzens and an exception to almost the rest of the world.
Back to the lifestyle element - this is really the main issue in a choice of location. It probably is a shock not to account for taxes and not pay them - but that wears off in a few years and lifestyle becomes more important - we only live once
