That is interesting about the IRS going after former citizens for 10 years if they believe the move was for tax reasons. I hope that doesn’t apply to permanent residents. 🙂
I’m pretty sure that Canada doesn’t tax world-wide income like the USA. So, if for all intents and purposes I’m a Canadian living in Panama, income from interest/dividends/capital gains should be tax free. Since Panama/Uruguay specifically exempt income earned outside the country from tax. Canada doesn’t even try to get in on that action.
The IRA withdrawls are questionable. I could always cash it out, eat the 10% penalty and pay the US before I go. I still have decades before I can actually start taking it out penalty-free. Or, if the US is only going to tax that (and not anything else like interest/dividends) the lower US tax brackets aren’t so bad.
