Comments by "dlukton" (@dlukton) on "Five Ways to Pay Zero or Low Tax" video.

  1. Yeah, that was my question also. I'm pretty sure that US citizens are out of luck on this (although there may be an option for Americans who can set up a legitimate business in Puerto Rico, and also live there 6 months/year).
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  2. I believe so. If you have a residence permit in a zero-tax country, I believe that you could spend as much as 5 months per year in the US, and still take advantage of the FEIE (foreign earned income exclusion). So you could set up a corporation in a country that imposes no income tax or corporate tax; and then pay yourself a salary of $107K in the zero-tax country that you're going to be a resident of (you could also pay your spouse a salary of $107K tax-free). You'd have to live in the zero-tax country for 7 months per year.
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  3. I think that it DOES work if you're living in a zero-tax country or a low-tax country; you just set up a corporation in a zero-tax country (not necessarily the country that you're going to live in), then pay yourself a salary; you can then take advantage of the FEIE. What I'm NOT sure about is what the rules are for US citizens who own a corporation in a zero-tax country, and who live (at least 7 months/year) in a TERRITORIAL tax country.
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  4. The tax rate in Panama isn't all that low when the payroll tax is taken into account.
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