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To: tommy gunn who wrote (2724)	5/2/1998 6:13:00 AM
From: Jurgen Trautmann	Respond to of 11051

Tommy, re tax outside of USA: You're the expert, aren't you? For everybody else: the most important difference between US-tax and tax in other nations is that you cannot "leave" US when you once were tax-obligated. So, for US-people it's a criminal act - they buy f.e. a Venezuelan passport, use that "second" identity and go in a "tax heaven". Nevertheless, by US-law they are obligated to pay tax for their worldwide income as long as they live. In Germany, Spain and most other countries of the world you must pay tax for your worldwide income while you're living there. A common criteria is that you stay for more than 6 month inside that country. Where is the trick? See, most people earn money inside a country - they have f.e. offices, fabrications or just houses to rent. More, they have such negligeables like women, children and a nice home. So, it's not easy to leave a country under such circumstances. And, even if you've gone, you're not free from taxpaying for "sources" inside your home-country. Even capital-interest must be taxed in most countries - in US f.e. I must pay 25%. It's not difficult, the bank does it for you. BTW: In Germany, this rate is 30%. What does a German producer? He founds f.e. a insurance-company in a taxfree-region, like Channel-Islands, Virgin-Islands - and than he gets his own best customer. There's a lot of services that you can provide with separate companies abroad. Pitch for this entrepreneur: He cannot have taxfree earnings from his tax-heaven-companies while he's resident and so obligated to pay tax for his worldwide income. Here's the point most European tax-tricksers get criminal: They transfer their tax-heaven-gains f.e. to Liechtenstein-Stiftungen (similar to common-law-trusts) and don't declare that money. It's not amazing, neither in US nor elsewhere, when this money comes out on the daylight... What about Spain? The tax-system in Spain is quite similar to the German-system (they just copied a lot of them). The difference is, only Germans (and other residents from outside Spain) pay tax in Spain - they must, cause you cannot built a home in a secret way. And, when they offer a house for rent - f.e. in Germany, they must pay additional tax in Germany, when they aren't resident in Spain - when they are, they must pay up to 58% income-tax... Most Spanish people doesn't pay tax more than "partly". All rules here are more or less targeted to central-Europeans living in Spain. That's why Spanishs are friendly to visitors... BRW: It's a good idea not to die when you own a home in Spain. Your wife or your children have bad chances to got something from your home - better said, they are allowed to pay a second time the price... Jury