On Sunday night, the BBC and other news organizations released what they dubbed the “Pandora Papers.”
This trove of almost 12 million documents shows how some of the wealthiest and most powerful people offshore their money. 😲
We’re not paying attention to this story because of what it reveals about the rich and powerful. We’re watching because, as people living abroad, the aftermath will likely impact us.
There will be outrage as many non-ultrarich people will feel betrayed. Politicians will react to this anger and pass laws that make offshoring money less advantageous.
Unfortunately for expats, remote workers, and nomads like you, those rules will have unintended consequences.Most of us have bank accounts in different countries, not because we’re trying to cheat the taxman, but primarily because we opened them as we lived there. Some of us even have investments in different countries.
When politicians pass new laws to combat offshore tax evasion, people like us wind up with all the reporting and compliance burdens and none of the benefits (i.e., being uber-wealthy). Curious as to what that’s like? Ask your American friends living abroad about FATCA.
At abroaden, we’re all about building wealth while also being compliant, transparent, and avoiding these nasty surprises in the first place. We’ll be keeping an eye on this story as it evolves.
|