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Us citizen gonna be traveling outside of the USA. How will taxes and banking work?

Discussion in 'Business & Tax Advice' started by NasirJones, Mar 26, 2014.

  1. NasirJones

    NasirJones Newbie

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    I'm going to join the french foreign legion. I will be gone for five years. After discharge i will be a citizen of the EU.

    But during those 5 years i will basically be in a limbo. I'm not allowed to have a private french bank account during those five years because technically i won't be a citizen. I am assuming that i can keep my accounts back home. But after discharge i will no longer be an american citizen. Does that mean they can just take my funds?

    I'm confused on how to go about keeping my business afloat. I have a few authority sites that will hopefully be making decent cash on autopilot by then. I also do affiliate marketing with paid ads. I will have computer access at night/weekends so that should be plenty of time to do maintenance/run new campaigns.

    But how will taxation work? Will they be able to foreclose on my funds when i am no longer a citizen? I won't be using any of this cash until after i leave the military. Do you think i could trust clickbank/adsense to keep the money on my account safe for five years until I become a citizen of france and can transfer the cash to a civilian banking account?

    Or is there a way I can pay my taxes and manage my american money all the way from france? Any information or experience will be of great help/
     
  2. lancis

    lancis Elite Member

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    I dont know about the taxes, but there is nothing stopping you from opening a saving bank account in another country.
    In the same way as non US citizen can open a bank account in the US.
     
  3. subro82

    subro82 BANNED BANNED

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    I believe US is the only country that taxes income earned overseas from their citizens. Worth knowing.
     
  4. Porphyrogenitus

    Porphyrogenitus Junior Member

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    Even if you lose your citizenship US won't touch your bank accounts. The only possible concern I can think of here is just to make sure there's some activity in the account so they don't assume the account as abandoned property. Ask your bank before you leave.

    I'd really think twice about doing this though. You'll have to pay double taxes. France's taxes are downright awful, I wouldn't accept a job there unless they paid me 10x the market rate. Even at low incomes more than half will be confiscated, growing much higher as it goes up. If you have a good year they could easily take 75-80%+.

    Keep in mind US taxes are on all international earnings too, even for non-residents. Be very wary of the expat tax. The threshold is just 800k in assets(they'll include stuff like your home mortgage, car, 401k, business assets, etc.) or a little over 100k/yr . On the day you lose citizenship, they'll confiscate 30% of your assets, subject you to a 30% tax for 10 years, and hit you with the estate tax when you die. All this on top of French taxes, which are some of the highest in the world.

    If any of the above affects you I'd suggest you get some solid legal help. I've got a solid contact with KPMG in Monaco, pm me if you'd like his contact info.