Wealth taxes are potentially coming! According to OECD data, the countries that collected revenues from net wealth taxes on individuals in 2020 are Colombia, France, Norway, Spain, and Switzerland, for example.
Many countries around the world have been discussing wealth taxes. In the United States, Elizabeth Warren, Bernie Sanders and other politicians have discussed introducing wealth taxes on people with ultra high net worth. Canada under the Trudeau government have been discussing the idea of a wealth tax for years. In Canada there are now taxes on luxury goods such as cars and aircraft which can sometimes be 10% or 20% of the value of the luxury good item. The trend in many first world countries has been to introduce more taxes and it seems that some countries are heading in the direction of implementing wealth taxes eventually.
From speaking to people in countries that have wealth taxes: you can work the entire year and still might owe more money in wealth taxes than you actually make in income despite making a decent income as a professional. There is no way to get ahead when you work hard just to try to maintain what you have. You can have large real estate holdings and little income and potentially with a wealth tax you would not be able to maintain what you own due to the tax owed.
Compound interest can be very powerful. If you are saving thousands if not millions of dollars a year in taxes, you are able to get ahead overtime. At the end of the day you will have more money in your pocket to re-invest and grow your wealth even more. Some of the wealthiest, most financially successful people I have met have always emphasized the effect of compounding your wealth.
Governments are looking to their own citizens more and more as cash cows to pay for the government’s poor decision making. Don’t let yourself be a victim of abuse. Change countries by doing citizenship by investment or residency by investment in a tax free country or low tax country.
At JH Marlin Law we have helped hundreds of clients acquire a second passport through citizenship by investment or do a residency by investment program in a no or low tax country. By becoming a non-resident of your home country or country where you are living and becoming a tax resident of another country, you can potentially dramatically decrease your tax burdens.
This text and video are for informational purposes only and do not constitute legal or financial advice.
For more information about citizenship by investment you can contact: jennifer@jhmarlin.com
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