There are a few options for individuals looking to avoid paying taxes on their worldwide income. One option is to renounce their citizenship. This means giving up their U.S. passport and permanently leaving the country. Another option is to file for what’s called “citizenship by investment.” This allows an individual to obtain citizenship in another country by investing a certain amount of money in that economy. There are also a number of countries that don’t tax worldwide income, such as the Bahamas, Bermuda, and Monaco.
Of course, there are significant downsides to taking any of these steps. Renouncing citizenship is a permanent decision with major implications. It can be difficult to obtain citizenship in another country through investment, and not all countries offer tax-free status for foreigners. So before making any decisions, it’s important to consult with a qualified tax professional to explore all your options and understand the potential consequences.