The never ending cruise

[Tedx]

A NEW cruise is setting sail this week and will be taking its passengers around the world on an endless adventure, during which it will visit more than 140 countries.

Own or rent your own cabin, up to 3.5 years cruise all inclusive, Medical care, Starlink etc.

I went on a cruise 10 years ago, in the Med for a week. It was ok...I'm not sure I could have done much longer than a week though.

That was a holiday. This appears to be a way of life. It is possible to live on this boat forever.

Thoughts?

https://www.thesun.co.uk/travel/2815081 ... esidences/

[Imbiber]

Hell on earth

[Lootman]

Is part of the idea that you would not be resident for tax purposes anywhere? And so could pay for the cruise out of all the tax you would save?

That isn't a terrible idea although you could probably achieve the same thing by living part-time in a few different countries.

[Tedx]

Is part of the idea that you would not be resident for tax purposes anywhere? And so could pay for the cruise out of all the tax you would save?

That isn't a terrible idea although you could probably achieve the same thing by living part-time in a few different countries.

I thought the same thing...but there's no mention of that feature on their website (that I could find).

I guess it's the ultimate pre packaged tax avoidance arrangements. According to their site, you can have full ownership of a cabin from about 80k and you can leave and rejoin the ship whenever you want.

[Lootman]

Is part of the idea that you would not be resident for tax purposes anywhere? And so could pay for the cruise out of all the tax you would save?

That isn't a terrible idea although you could probably achieve the same thing by living part-time in a few different countries.

I thought the same thing...but there's no mention of that feature on their website (that I could find).

I guess it's the ultimate pre packaged tax avoidance arrangements. According to their site, you can have full ownership of a cabin from about 80k and you can leave and rejoin the ship whenever you want.

Probably good timing to market that now that an election has been called. Particularly if you are a non dom.

AIUI you can still spend up to 3 months a year in the UK without being liable for UK tax. So 365 a days a year on a boat could be overkill.

[doolally]

Getting a new laptop or whatever delivered by Amazon Prime might be problematic
doolally

[monabri]

And just what would Colin do in the meantime?

[JohnB]

Not a new idea, The World has been doing it for 20 years https://aboardtheworld.com/journey/journey-2024/ https://en.wikipedia.org/wiki/MS_The_World

[y0rkiebar]

Not a new idea, The World has been doing it for 20 years https://aboardtheworld.com/journey/journey-2024/ https://en.wikipedia.org/wiki/MS_The_World

Yes, saw that ship moored up at Greenwich a few years back.

[Tedx]

‘We sold everything’: Meet the retired couple setting sail on a 3.5 year cruise around the world

https://www.euronews.com/travel/2024/05 ... nd-the-wor

[Lootman]

‘We sold everything’: Meet the retired couple setting sail on a 3.5 year cruise around the world

https://www.euronews.com/travel/2024/05 ... nd-the-wor

The cited couple are Americans and so cannot enjoy the "pay no tax because you are not resident anywhere" benefit of the cruise. The US is almost unique in taxing by citizenship and not residency. So it doesn't matter where you live - Uncle Sam wants his cut!

[Tedx]

What actually happens if you wave 2 fingers at the US tax authorities after deciding the Europe (say) is the place you want to retire to? Can they attack your Swiss bank account for arrestment?

I suppose you could renounce your US citizenship...but I guess that's something that is quite difficult to obtain in the first place (unless you're born there), so that would be a tough decision.

[Lootman]

What actually happens if you wave 2 fingers at the US tax authorities after deciding the Europe (say) is the place you want to retire to? Can they attack your Swiss bank account for arrestment?

I suppose you could renounce your US citizenship...but I guess that's something that is quite difficult to obtain in the first place (unless you're born there), so that would be a tough decision.

Uncle Sam has very long arms and the US can project a lot of power and influence over other countries. I would not bet on someone getting away with it. As I recall they found the millions that OJ Simpson had stashed away in his Swiss bank account and managed to repatriate it.

There is a formal process for renouncing US citizenship but my understanding is that it involves continuing to pay US tax for a good number of years, maybe ten or so.

[Arborbridge]

A NEW cruise is setting sail this week and will be taking its passengers around the world on an endless adventure, during which it will visit more than 140 countries.

Own or rent your own cabin, up to 3.5 years cruise all inclusive, Medical care, Starlink etc.

I went on a cruise 10 years ago, in the Med for a week. It was ok...I'm not sure I could have done much longer than a week though.

That was a holiday. This appears to be a way of life. It is possible to live on this boat forever.

Thoughts?

https://www.thesun.co.uk/travel/2815081 ... esidences/

I believe I saw this ship, or a smaller one based on the same idea. I can see some attraction to it. Some people retire to a fixed hotel, but this one just has a continually changing scene and places it visits.
I believe it was called something like "Small World".

[Tedx]

i recall a number of years ago a friend of a freind having US and UK citizenship and living in the UK and moaning that he had a demand from the US tax authorities to pay tax on his ISA.

My memory is a bit hazy on that one though - so I might have picked it up wrong.

[SalvorHardin]

What actually happens if you wave 2 fingers at the US tax authorities after deciding the Europe (say) is the place you want to retire to? Can they attack your Swiss bank account for arrestment?

I suppose you could renounce your US citizenship...but I guess that's something that is quite difficult to obtain in the first place (unless you're born there), so that would be a tough decision.

Yes, the American tax authorities will go after Americans' Swiss bank accounts. The IRS (Internal Revenue Service) are ruthless and since 2022 Swiss banks have to notify the IRS. There have been several major court cases where Swiss banks have been fined - the Americans can do this far more easily than other countries because they can always stop offending banks from using the American financial system, which is a major incentive for banks to cooperate with the IRS.

The way the IRS treats Americans' finances if they live outside America is a major deterrent for financial institutions to deal with American ex-pats. In Britain an American wanting to do business with a British bank sets off all sorts of red flags and all too often ends up with the American being told to take their business elsewhere.

"The Justice Department has spent over a decade cracking down on Swiss banks for helping wealthy Americans hide their money. UBS, Switzerland’s largest bank, was fined $788 million in 2009 after a Justice Department investigation determined they helped American clients hide taxable assets. Credit Suisse, then the second largest bank in the country, pleaded guilty five years later—paying a massive $2.6 billion fine for similar practices. "

https://www.forbes.com/sites/zacharyfolk/2023/12/04/swiss-bank-admits-hiding-56-billion-for-american-taxpayers/

If you renounce your American citizenship you will be hit with an "exit tax" if your income or wealth exceeds a certain threshold. According to the IRS' website the wealth threshold is $2 million. It's a tricky calculation involving unrealised capital gains, several types of examption and tax rates which are not entirely clear (I've had a quick look and the calculation looks about as user friendly as having to deal with a rabid cornered rat on speed).

https://www.irs.gov/individuals/international-taxpayers/expatriation-tax

[Tedx]

I've been trying to think of the movie this reminds me of....

Ah.

Triangle of Sadness

A fashion model celebrity couple join an eventful cruise for the super-rich. - with hilarious consequences!


https://www.imdb.com/title/tt7322224/

[didds]

so if you were born in the US while your eg UK parents were living there for a year eg for work, left aged <1 year old and never ever set foot in the US, got a US passport, ever for the rest of your life you would have to pay taxes to the IRS for ever ?

[BBLSP1]

so if you were born in the US while your eg UK parents were living there for a year eg for work, left aged <1 year old and never ever set foot in the US, got a US passport, ever for the rest of your life you would have to pay taxes to the IRS for ever ?

Unless you renounce citizenship - yes!

As I joke with green carded friends working towards citizenship, you do realise that you will not so much end up a citizen of the USA as a subject of the IRS.

[Lootman]

so if you were born in the US while your eg UK parents were living there for a year eg for work, left aged <1 year old and never ever set foot in the US, got a US passport, ever for the rest of your life you would have to pay taxes to the IRS for ever ?

I think that in most cases, no. The toddler would return to the UK or wherever and the issue of US taxation would quite simply never arise. For example US citizens who work overseas get an exemption for the first $75,000 a year of income. And when you also take into account the double taxation treaty and the fact that UK taxes are higher than US taxes, then it really would not be worthwhile for the IRS to chase such people down.

However if that person happens to later become rich and famous, then Uncle Sam might decide to take a special interest in their success.