Before any American’s decide to relocate to El Salvador, or anywhere else in the world for that matter, there is something you should know first.
USA, Myanmar, and Eritrea are the only countries to impose world wide taxation on its citizens. Americans will have no benefit to the taxation policy in El Salvador.
For example, if I wanted to live full time in El Salvador because they have 0% capital gains on bitcoin… As an American living in El Salvador, I would still owe the same capital gains to the USA regardless that I don’t live in the USA.
If I were anything aside from a USA, Myanmar, or Eritrean citizen… let’s say for example, a Canadian living in El Salvador, I would owe 0% capital gains across the board, because Canada does not impose world wide taxation on its citizens like how the USA does, and El Salvador again has 0% capital gains on bitcoin.
It doesn’t matter that Canada has high capital gains taxes on bitcoin for its domestic citizens in Canada. Since there is no world wide taxation imposed by Canada, Canadians have the freedom to avoid Canada’s taxes by choosing to live in another country with more favorable taxes.
Only USA, Myanmar, and Eritrea impose world wide taxation on its citizens, and we have zero ability to avoid those taxes, which is pretty fucked up and authoritarian.It really sucks that the USA imposes world wide taxation.
As an American, all I want is freedom from worldwide taxation, full stop. It’s not much to ask for considering every other country in the world does it that way. (Aside from Myanmar and Eritrea). For someone like me, renunciation of USA citizenship is the only practical solution to avoid unfair and unjustifiable world wide taxation.