[ExpatInfoDesk]

Posted by MarkEcuador , 1 reply

My wife and I are looking to move to Ecuador. I run an internet business and all my client are from the US. They pay me a set monthly salary. My question is, if we move to Ecuador and live there full time and travel back to the US to visit family and meet with my clients will I be required to pay fed or state taxes?

Another question, can we keep a home in the US or will we need to have no ties back to this country?

Thanks in advance.

1 reply

bigBlueMango

Generally, the IRS wants you to pay taxes somewhere; if not to them, then to the country you’re resident in. Living in the UK, for example has higher taxes than the US, so it’s likely you won’t pay any US taxes. But you do have to file yearly federal and state tax forms. Living in Dubai, where there is no income tax, will trigger an automatic response by the IRS that, if you’re not going to pay income tax in Dubai, then you’re going to pay to the IRS. It’s the long arm of the US tax authorities, and it causes quite a few people to renounce their US citizenships. Also, if your clients are paying you a ‘salary’, then that must mean you are an employee. If you mean to say, a monthly fee, try looking into setting up a company in Ecuador to see which is better for you and your company.

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