Mark Nestmann has a Masters of Law in international tax law. His work has been featured in well-known media outlets including The Washington Post, ABC News, The New York Times, Bloomberg News, Business Week and Forbes. Fans of his work include former US Congressman Ron Paul and Bob Bauman, as well as famed analysts Gary North and Dr Mark Skousen. He has been able to help more than 15,000 customers and clients protect their assets, protect themselves and live more free lives. In this interview with Mark Nestmann, they really dive deep on why the Americans have negative views towards offshore investing.
Negative View Towards Offshore Investing
Mikkel Thorup starts off this interview with Mark Nestmann talking about why US citizens have such a negative attitude about Americans living and doing business overseas. Is this a justified concerned?
The US has the world’s largest economy. With 300 Million people, only 60% have travelled outside of the country. That leaves 40% that have not. Many have only travelled to the bordering countries, Canada and Mexico. So it’s hard for most Americans to understand why someone would want to move or live overseas. Mark Nestmann explains why Americans have this belief system and sets the record straight.
Here are a few of the topics discussed about these negative views regarding offshore investing:
- The mainstream media equates investments outside the US with Tax evasion
- There are 9 million Americans that live overseas that require a bank account, why is this any different than Americans living inside the USA
- All nationalities must have a bank account if they live overseas
Tax Havens, yes or no
The next question Mikkel Thorup & Mark Nestmann discuss is that the USA is the largest tax haven in the world. Due to FACTA, they have no information exchange. This information is invaluable and is quite interesting to learn from Mark.
Mikkel asks Mark Nestmann: What have you seen, do most Americans who live outside the US live in tax havens?
Is it hard for Americans to get bank accounts when they live overseas?
The majority of US citizens living overseas actually have to pay higher taxes than if they lived in the USA. Canada is the #1 destination for US citizens to live overseas because it is right next door, they speak English and they have a similar culture. However, taxes are higher. 1 Million Americans live in Canada. 1 Million Americans also live in Mexico. The other 8 Million are spread throughout the rest of the world.
Mikkel’s next question to Mark Nestmann was, why would an American wish to consider living outside the US?
I’m sure many of you may be wondering about that. The US currency is really strong, there are lots of opportunities available for Americans, and if they have to pay higher taxes, what is the draw? Listen in to hear Mark discuss this in detail.
Overseas Bank Accounts
The discussion then turns to what unique entrepreneurial opportunities exist outside the US that isn’t available domestically.
Apart from the need to readjust to a new culture when moving outside the US, what unique challenges do Americans face when they relocate to another country?
Most will find this extremely interesting. There are more than nine million Americans living overseas, but only about 500,000 file tax returns with the IRS. Does that mean the other 8.5 million are evading tax?
What options does an American living abroad have if he/she hasn’t been filing tax returns, FBARs, etc.?
This is fully explained in this interview with Mark Nestmann. Make sure you have a pen and paper to take notes.
To set the record straight, when do you have to file a tax return as an American?
Related Articles & Podcasts
In Episode 69 with Richard Maybury, we discuss how the trade war with China will affect you and your investments.
Joel Nagel from episode 81 discusses the best countries for residency by investment
Here is a really great article from Escape Artist, written by Joel Nagel on Second Citizenship that I know you’ll love.
Legal Ways to Avoid paying income tax, by Mikkel Thorup
Final Thoughts From Mikkel
My interview with Mark Nestmann from the Nestmann Group was extremely educational. I’ve had several interviews that delve into the topics we discuss, like, why Americans have negative views towards offshore investing and overseas bank accounts. I always find it fascinating how different my guests are and how they explain what they know about these topics. I know you’ll find these topics very helpful in you are an American living overseas.
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