No, I'm not rich, I'm just an entrepreneur, so most of my income is from capital gains. And most (almost all) of my expenses is paying salaries and vendors.
> Oh yeah, and just wait until you see you have to pay the US taxes on your income too.
No, you don't.
You still have to file but you get "Federal Tax Credits" for income tax paid abroad and seeing how a EU country's income tax will almost certainly be higher than the US', you'll end up paying nothing.
There's also tax treaties to avoid double taxation in other ways.
I’ve seen plenty of videos covering it from expats stating they still do in fact pay taxes back to the US. Maybe the info is outdated or things have changed recently, but a cursory google makes it seems like that “No, you don’t,” isn’t true. It looks like the Federal Tax Credit only covers up to $130,000 per year of income. Then you pay on whatever you make over that (assuming you don’t have other credits).
> I’ve seen plenty of videos covering it from expats stating they still do in fact pay taxes back to the US.
"Expats" living in Europe?
I ask because "expat" usually refers to someone who moved to a lower cost of living country that may also have significantly lower income tax compared to the EU.
> It looks like the Federal Tax Credit only covers up to $130,000 per year of income.
$130k/yr is absolute bank in Europe.
From a quick Google search, that would put you well in the top 5% of earners in Berlin, just as an example.
So, this shouldn't be much of an issue.
Not a tax advice, but AFAIK, if you had to pay $1000 to US IRS, and already paid $800 to another country, then you owe US $200.
The country must have a tax treaty with US, so they exchange the info about your taxes in background. But many countries in EU has higher tax rates than US, then you owe $0.
