3 Ways to Pay Lower Taxes as a US Citizen

3 Ways to Pay Lower Taxes as a US Citizen

Even the most ardent patriot or dissenting liberal can see the American dream is over for many. For some, their American dream is now found overseas.


US taxes apply to all US persons, including green card holders. Frequent visitors meeting the substantial presence test can become US taxpayers.

Who Do US Taxes Apply To?

The first option to lower your taxes as a US citizen is to live offshore and avoid triggering another country’s tax residence. Living offshore gives you flexibility but doesn't eliminate capital gains tax.

Living Offshore

The second route is to move to Puerto Rico, which offers low business taxes and no capital gains tax but lacks location flexibility. Moving to Puerto Rico reduces tax burden while staying on US soil, under Act 60 for service exporters and investors.

Moving to Puerto Rico

The best way to eliminate all US taxes is to renounce US citizenship, an option more people are choosing. By renouncing, you avoid US tax on foreign income and no longer have to file a US tax return.

Renouncing US Citizenship

The first step to renunciation is to get another passport. You must establish citizenship in another country because you cannot be stateless.

Securing Caribbean citizenship by investment is fast and cost-effective. Wealthy US citizens can choose Malta, costing around €1 million, for quick passport access.

Malta is a good option if you can invest in getting a passport quickly. On the other hand, if you’re happy to wait for access to the States, living in a place that will eventually give you a passport in seven years without investing is another potential route.

Renouncing US citizenship can lower taxes with proper planning. You can also lower taxes by living overseas or moving to Puerto Rico. Whatever you decide, structure is key to success.


Our experienced team can help you legally reduce your tax rate offshore, protect your assets, invest overseas, obtain a second citizenship, and improve your peace of mind. We’ve helped 1,500+ HNWI entrepreneurs and investors and we can help you, too.

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